Lee County single family home seller price reductions averaged 3.31% in the past 9 weeks. The last 7 days in Lee County saw 797 price reductions which was the highest number since April 23rd.
Home Seller Price Reductions
Last week’s home seller price reductions averaged 2.97%. This means that sellers on average are reducing the price of their home by around 3% in hopes of finding the correct price for their home. The Southwest Florida real estate market has been rebalancing itself since June 7th, 2022. That’s the official date single family home inventory crossed over the line and surpassed home demand. Since that date, we knew the upward price pressure was over.
The Ellis Team has a chart that tracks the difference between weekly housing supply and demand. The gap narrowed slightly this past week, but that is because there were some expired listings that hit the market June 1st.
Current Market Index
The real number we look at that accurately predicts home prices, and the future direction of the housing market is the Ellis Team Current Market Index. That number increased slightly this past week and stands at Feb 20th levels. We’ll be looking at this number closely in the coming weeks as this should tell us what kind of summer we’re likely to have.
12.26% of listed homes reduced their price last week. This number is back to the numbers we saw in April as homeowners tried to unload their homes before the end of season. To put it in perspective, the week before number was 8.85%. More home sellers reduced their price last week than the week before, but the average reduction fell to 2.97% from 3.09%
This tells us sellers are pulling the trigger faster trying to figure out where the buyers are for their home. Back in 2022 sellers believed the market was still improving when it wasn’t. Today most sellers realize the market we are in, and the ones who act accordingly and reposition their home sooner are winning the game. Those that react later end up taking less for their home later. Some price correctly the first time and never need a price reduction.
Home Selling Chart
We have a chart that shows the cost of overpricing a home in a shifting market, and the cost of reacting slowly to market changes. We show this chart on listing presentations so our sellers can make the best decisions for their home and can quickly analyze new data as it becomes available after listing. In this way, clients have an inside track on where the market is going and can make decisions that help maximize their home sale price.
Goals
What are your real estate goals? Some people get fixated on how much they are making or losing on one single transaction and forget about what’s important about the move they wish to make. At the Ellis Team, we are not here to make decisions for you. We do not push you or sell you to do anything. We may ask some clarifying questions so we can match our intensity with yours. Some sellers need to sell and want to maximize the amount they receive at closing. Others do not need to sell and are testing the market. If the market pays them a premium, they might consider selling.
It’s best to talk about your situation and be honest with your Realtor. A good Realtor can only help you when they know what is most important to you, and you work together as a team. If you’d like to talk with a team that cares and won’t try to sell you on what you should do, give Sande Ellis or Brett Ellis a call at 239-310-6500. We’re here to help. Or visit www.SWFLhomevalues.com to get a Free online estimate of your home’s value.
Good luck, and Happy Selling!