Lee County housing supply increased in February up to 5.84 months supply, up from 5.05 months at the beginning of the year. Let’s break down which price ranges have changed the most.

Lee County Housing Supply February 2024

All price ranges increased in inventory, but as we go higher the effects seems to be much greater. For instance, the $300-400k market increased by .44 months. The $400-600k market increased by .82 months. The $600k-$1 million market increased by 1.07 months, and the $1 million+ market increased by 2.31 months.

Lee County Housing Supply Grows on the High End

 The data shows the higher priced homes have been hit the hardest by inventory supply. So, what is causing the buildup in inventory? Is it increased homes for sale or decreased sales, or both?

For the $300k and up price ranges, it’s a mixed bag. Home sales in the $300-400k range are steady, down only 7 sales. The real reason is inventory is up 164 listings. For the most part, the increase is due to more sellers bringing their home to market and the market not absorbing them.

The $400-600k range saw a decrease of 46 sales and an increase of 237 listings since the beginning of the year. This tells us more listings are coming to the market, and there are less buyers for the existing inventory, let alone new listings.

In the $1 million plus market, sales only declined by 10 homes. The reason inventory supply shot up so much is because listings increased by 214 homes.

Technically the $400-600k range had the largest drop in home sales and the largest gain in listings, so you would think this range would have the greatest increase in housing supply. The reason it is not is because there are so many more listings in sales in this price range than the $1 million plus range, so the changes don’t move the numbers as much.

Cost of Sitting on the Market

If you have a home in one of these price ranges, it pays to know exactly what the market is doing, We have a series of charts that shows definitively the cost to sellers when they fail to understand where their home fits in the marketplace. The charts show the difference in selling in a stable market versus a shifted market, and the disadvantages of chasing the market down. When Sande and Brett meet with sellers at a listing consultation we can go over these graphs, as well as the inventory graphs of our current market.

Economist of Choice

It is by truly understanding the market data that a seller can make appropriate decisions about marketing their home. Marketing is a combination of pricing a home commensurate with today’s market conditions, as well as all the daily activities and paid advertising sources a Realtor employs to sell a home. Your selection of a Realtor should consider who will pay to advertise your home, how much and where they will do so based upon results, the activities and communication the Realtor provides, and the pricing based on today’s market conditions. The Realtor you select should be your economist of choice, not who tells you what you want to hear and is your friend.

If you selected a price to sell your home 3 months ago, it may already be outdated. We spend hours each week making sure our listings are current with the market. If we met with you in the past but did not list your home, we need to update that value because it could be obsolete.

Market is Always Moving

We have one of the best free online home valuation tools available at www.swflhomevalues.com. However, even these online value tools can be several months behind the market. It pays to consult with a real estate professional that can provide you detailed market statistics. While the online tools are great, nobody really knows how they come to the conclusions they do.

Always call the Ellis Team at Keller Williams Realty 239-310-6500 Good luck, and Happy Home Selling!

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