Single family home listing inventory declines third straight week in SW Florida. Currently there are 6,417 active homes listed on MLS, which is down from 6,475 the week prior. This is a decline of 58 homes.
We decided to investigate what is causing the decline in inventory. Are more homes selling? Are sellers giving up and taking their home off the market? Did more homes suddenly go pending? These are all great questions, and here is what we found.
Listing Inventory Declines Third Straight Week
According to our MLS, 1,462 homes closed in May. We know the official number will be higher as Realtors from outside MLS’s could have posted some sales invisible to this MLS. In May of last year, we had 1,428 home closings, so we picked up 34 closed over the previous year. Total pending sales are down 28 from the previous week. This doesn’t exactly answer the question.
Next, we looked at new listings versus pendings and closings. New listings totaled 328. Solds totaled 260 for the week. Pendings totaled 325, so new listings outgained pendings by 3. There were 85 back on the market, and 79 withdrawn. The back on market could have been pendings that fell out but could also be people that had taken off market temporarily.
Bottom Line
The bottom line is we cannot tell why inventory has peaked and declined slightly. We know nationally when interest rates decline, we see an uptick in pendings. Locally that wasn’t the case as total pending sales dropped by 28. Interest rates have declined slightly after the jobs report showing some weakness in labor and inflation moderating ever so slightly.
The Fed has said we are nowhere near our target of 2% inflation, but at least it quit going up and we saw a .1% pullback this past month. If they can see continued moderation of inflation the hope is interest rates could go down by end of year or early 2025. We believe once rates start coming down it could accelerate a little because there is a cushion built in by lenders due to risk. Once the direction of rates become clear, they might release that cushion.
The good news is that listing inventory declines third straight week and may have topped out. Back in 2022 we spotted a trend where listing inventory began rising in February. It wasn’t long until June 7th when listings began outpacing pendings, and we knew the days of rising prices were over.
Currently we have a gap of 4,452 homes between listings and pendings. We are nowhere close to saying price drops are over, but at least the trend seems positive.
We’ve seen a similar gap at many points in time going back to December of 2023. Fort his reason we cannot say the recent good news is sustainable or the start of a new trend. It is simply good news for 3 straight weeks, and we’ll take it.
Marketing and Price
Marketing and price are still the most critical components of a successful sale. The seller controls both right now. The seller determines who they feel is best able to market their property, and they control the price. The market determines the value, so when a home is marketed properly and the price equals the value set by the market, the property will sell. Failing at excellent marketing and improper pricing often results in a no-sale situation.
Always Call the Ellis Team
Sande and Brett 239-310-6500 can answer your questions on price, and our marketing is second to none. Or visit www.SWFLhomevalues.com for a Free instant estimate based on local conditions. There is a reason Sande and Brett have been voted the Best in Real Estate 12+ years. We’d love to show you how our marketing and expertise can work for you. Who you hire matters! We’d love to earn your business.
Good Luck and Happy Selling!
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