It is no surprise to anyone buying or selling in SW Florida that October real estate sales prices were up nearly 20% year over year. We have written a great length each week about the factors influencing the market. Let’s look beyond the headlines and unpack what is really going on and see if we can get a gauge into the future.
Median October real estate sales prices were up 18.8% while average prices were up 22.6%. That is phenomenal growth. I would be a bit skeptical if just the average price was higher as a few high dollar sales can skew that statistic. The other thing I look at is there a trend. This was not a one-month phenomenon.
This is the 3rd straight month we have seen 20% gains in average price. It is also the 3rd straight month median price has risen 16.5% or more. That is telling us this pricing pressure is real and demand is truly outpacing supply. This is not a joke.
New listings were down 2.5% in October compared to last year while new pending sales were up 38.8%. This is putting a further drain on available inventory and making it harder for buyers. Buyers are coming to town and finding few choices in their desired search. In many cases buyers are having to settle just to score a home. It does beat being homeless and someday down the road they will be able to trade for a home they like better. The goal today is to find a home that at least suits their basic needs.
Pending inventory was up 61.9% in October. This is an indicator that closed sales in November and December will be high. Even though sales were down 14.1% in April and 39% in May, sales are up 8.3% for the year. If we have monster sales in November and December, we could be in for some record numbers.
Perhaps next week we will dive into inventory by price range. Suffice it to say that all price ranges today have less inventory than last year. Every single range. Let that sink in. This market rally is across the board and not limited to hot spots.
The Ellis Team has done an excellent job counseling buyers what it takes to win a bid for a home. Buyers do not want to pay more than they must, but they also do not want to keep missing out on homes either. Getting their 4th or 5th choice is not as much fun as getting their first choice. The sad thing is because all the buyers are clustered around the best listings, when one goes, they all move to the next best listing. The irony is, sometimes buyers end up paying more for #2 than they would have for #1, because now there is one less choice once #1 goes off the table.
Working with experienced agents like the Ellis Team at Keller Williams Realty not only can help guide you into scoring the best home for you, but we can save you money as well. We have access to zero lender fee loans that may save you thousands of dollars cash at closing. These savings require less money at closing, or they allow you to buy more home because the cash outlay is less.
Talk to a friendly buyer specialist on the Ellis Team and ask about savings we can pass along to the buyer. To search the MLS like a pro, visit www.LeeCountyOnline.com It has all the listings, and it is updated instantly so you will always have the latest listings. In a market like this, speed and accuracy wins.
Sellers, we have good news for you. Brett and Sande Ellis are experts at marketing your home to local and out of state buyers. This creates more demand for your home and in turn gets you a better price. If you would like to talk to us about selling a home, call Brett or Sande Ellis 239-489-4042 Ext 4. Or visit www.SWFLhomevalues.com
Always Call the Ellis Team at Keller Williams Realty. We love helping people, and market knowledge matters more than ever.
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