No, we’re not talking about Santa’s bag here. We thought this week we’d do a mailbag of topics, and invite questions for future articles. If you have a question or topic you’d like covered, simply e-mail me at Brett@Topagent.com and we’ll do our best.
Interest Rates
Yes, they’ve been on the move, and the move has been upward. Rates have risen about .625% in the past 1-2 weeks. For every 1% rise in rates, it takes away about 9% of a purchasers buying power, so buyers have just lost about 5% buying power in the past 2 weeks. This is why the media and Wall St. talk about rates so much and where they are today versus historically. Now, they are still historically low, but they have been moving up. With prices this low, and rates still fairly low, buying power is still great even though it may not be what it was 2 weeks ago.
Foreclosure Listings
Foreclosure listings for single family homes active on the market in Lee County stood at 768 in November Versus 1,107 today. That’s a 32.42% increase in just one month, and we can attribute this to banks placing properties on the market after the foreclosure moratorium because of the robo-signing issues. Most banks feel confident going forward, especially for their non-occupied properties. We see this as a good sign. The quicker we get all inventory out and to the market the faster the market can heal and move forward.
Pending Sales
Pending sales rose again in November which indicates buyers are ready, willing, and able to buy and they’re making every attempt. This is another reason we’d like to see all available inventory on the market as the buyers are definitely biting. All areas of Lee County are seeing a rise in pending sales. Cape Coral saw a rise of 60 pending sales over last month, Fort Myers saw a rise of 69 sales and Lehigh Acres experienced a rise of 32 pending sales. Season is upon us and we’ve notice an uptick in buying activity from buyers up North sooner than we did last year, which could mean we’ll be in for another good season this year.
Current Market Index
Each month the Ellis Team produces a current market index which accurately predicts forward activity in the SW Florida real estate market. This month the index dropped to 4.22, down from 4.62 last month. The lower the number the hotter the real estate market is. A higher number indicates a buyers market. We wouldn’t say it’s a buyers market. We’d characterize it as a sellers market if the property is priced correctly. Buyers are competing against each other with multiple offers on properties that are priced correctly, and bypassing over-priced listings. The market speaks. Sometimes it’s as easy as slowing down and listening to what it’s saying, and if a property isn’t receiving offers, then there’s a good chance it’s the price. The market is hot, but it’s not forgiving.
Closed Sales Flat
November closed sales were relatively flat Versus October. In fact, our research shows they’re down slightly, but official numbers won’t be released until next week. Last November sales rose, so when official numbers come out we could see a transaction drop from last year.
This is the last article before Christmas believe it or not, so next week we’ll either answer your questions or provide updated analysis once official numbers are released. We hope Santa is good to you and brings you good tides and good cheer, and no matter how big the bag is this year, always look for opportunities to lift somebody else’s spirits this Holiday season and into the new year.