“Nobody wants to buy real estate right now” is what I heard a seller say this past week. They were taking their home off the market with their agent because they felt like there were no buyers. When your home fails to sell, and you didn’t have many showings, it might feel like nobody is buying.

Nobody Wants to Buy Real Estate -Actual Numbers

There were 927 closed single family home sales in February. That is down from 1,022 last year, but it’s not nothing. There were 335 closed condo sales in February, compared to 445 last year. That is a bigger percentage drop than the single-family home sales.

What this tells us is there is pricing pressure. Fewer buyers are buying, but it’s not nobody.  To put this in perspective, let’s say you have a home that is worth $500,000. If you put that home on the market for $50,000 would you have offers? If you put that home on the market at $100,000 or $250,000, would you have offers? The answer is a resounding yes, you would have multiple offers.

So, there are buyers. The real question is, at what point do buyers turn off for that $500,000 property? Is it $450,000, $475,000, or $500,000? If the property is truly worth $500,000 that is going to be the point where buyers accept the property but not over. If buyers turn off at $480,000, is it really a $500,000 property? Just because it is worth $500,000 in the seller’s mind doesn’t mean it is in the market’s mind. The market is the totality of buyers, not simply one buyer. If you overprice the property, you will not find even one buyer. If you underprice the property, you’re likely to find many buyers.

Marketing

The other question sellers ask is was my property marketed to its full potential? If the market was aware of your property and your price, it wasn’t the marketing? However, if it wasn’t presented in its proper light, or marketed fully, that’s another story. I’ve seen instances where a property was classified wrong, or didn’t have certain key features listed. If an agent can’t search on a field, you could be missing buyers. If just one key item is wrong, your listing could be invisible to the market.

Reach

If everything is correct in the marketing, what was the reach? Was the marketing muscle enough to have the proper reach for the intended audience? Getting everything correct and not spending money to market is a common mistake agents make. Perhaps the agent doesn’t have the money, or they’re counting on their broker to market it. The problem with that strategy is the broker then advertises all their company listings, and each listing waits their turn until the next time.

Portals

Agents rely too heavily on the national real estate portals like Zillow, Realtor.com, or Homes.com While buyers do look there, they don’t have all the features of a site like www.LeeCountyOnline.com Additionally, these portals sell user data to agents as a lead source, so when you search on them, an agent who is not the listing agent may contact you to sell you a home somewhere, anywhere. The portals have no incentive to sell your home.

Ask Your Agent

Ask your agent where else they advertise. Do they advertise in print? What about digital advertising, segmented ads, and other forms of advanced advertising. What are they going to do to make your home stand out? Most of the sellers are also on the portals, so what will make your home stand out?

Two Reasons Why Homes Don’t Sell

There are typically two reasons why a home didn’t sell. Was it marketed properly, and was it priced correctly? You, the seller, oversee who you hire. You are also in charge of pricing it correctly. In other words, the agent you hire makes all the difference.

Always call the Ellis Team at Keller Williams Realty 239-310-6500. We’ll explain how to fully market your home, and price it correctly. Or visit www.SWFLhomevalues.com for an instant ballpark price on your property. Don’t forget to call us to validate the price, and go over your marketing options.

Good luck, and Happy Selling!

See Last Week’s Article “SWFL Real Estate Buying Signals Flashing”

Featured Home of the Week

5839 SW 1st Ct Cape Coral

March Real Estate Update

Expired Listings April 1, 2025

We are starting to see some SWFL real estate buying signals flashing in the market right now. Everybody always asks, “is now the time to buy real estate?”

The correct answer is not to try to time the real estate market. Don’t wait to buy real estate, buy real estate and wait.  This article is not going to focus on that. This article is for all the people who want to time the market.

Several indicators are flashing green right now. This does not mean prices will begin rising right away. In fact, prices could continue to go down some as these are leading indicators, meaning it takes time to take effect, and conditions could change in the meantime while we wait.

Inventory Levels

For the first time in a while, single family inventory in Lee County declined this past week. Pending sales have picked up nicely. They are not to the level of last year but welcomed just the same.

CMI Index

The Ellis Team CMI index has been falling since its peak in January. This is a good sign for future prices in SW Florida, albeit down the road. If this continues falling in April and May sellers will breathe a sigh of relief.

Interest Rates

Interest rates have been falling since January 16^th when they peaked at 7.04%. This week they were down to 6.67% according to the St Louis Fed. As rates drop, housing becomes more affordable to more buyers.

Insurance Rates Drop

 4^th qtr. insurance rates fell by .7% for single family homes and 1.7% for condos. This is the first drop in over 2 years. Granted, rates rose much more than that, but it is a sign that recent insurance reforms enacted are helping with insurance costs. Everyone said it would take time but watch for lower premiums in the future.

The Gap

The gap is the difference between the number of homes on the market and pending sales. The gap peaked on Feb 11^th and has been declining since. This is another welcome sign for homeowners.

Tariffs

Tariffs on lumber and steel may help home sellers. Resales have been competing with new construction for years, and many times losing. As the cost of lumber, steel, and other commodities increases it raises the cost of new construction. This may help resales compete with new construction prices and stem the loss of buyers who have been buying new construction.

The SW Florida real estate market was flashing red for the past 2 years, but now some SWFL real estate buying signals are flashing green. We do not believe prices are headed higher anytime soon. We do believe if you are trying to time the market, there are some buying signals that look favorable.

Have We Hit Bottom?

We will never know when the market has hit bottom until some time after and it is heading up. We see signs of increased buyer affordability. It is better to buy at 1-2% before the market has hit bottom than 1-2 % after, because of the leverage buyers have today versus when everybody knows, including the sellers, that the jig is up. Today, buyers have maximum leverage and might one day regret not buying.

To search for your home and help analyze the market, check out www.LeeCountyOnline.com. Not only will you see all the listings, but you’ll also appreciate the neighborhood market reports.

Sellers love the free and instant home value tool at www.SWFLhomevalues.com Still others prefer to talk to us. You can reach us at 239-310-6500 and we can talk about your situation and the market. See last week’s article “Top 10 Reasons Sellers Become Frustrtated With Their Listing Agent”

Good luck, and Happy Selling!

The Future of Real Estate Market Update March 2025

Which is Better, Zillow, Realtor.com or Homes.com?

Fort Myers Beach in March

Expired Listings April 1st

We recently did some research and discovered the top 10 reasons sellers become frustrated with their listing agent and thought we’d share them with you. We’ll group them into areas.

Performance

1. Overpricing or Underpricing the home. Agents who overpromise a high selling price to secure a listing, then fail to deliver, or agents that underprice the home, causing the seller to lose money, create major frustrations. Both cost the seller money.
2. Inadequate Marketing. Sellers expect more than simply placing it in MLS and letting it automatically go out to the portals. When marketing efforts are weak, sellers feel their agent isn’t doing enough.
3. Lack of Experience. Inexperienced agents may make mistakes or lack the knowledge to handle complex situations, causing stress for sellers.
4. Scheduling Issues. Issues with scheduling showings, open houses, or other important appointments can create significant inconveniences for sellers.
5. Poor Negotiation Skills. Sellers rely on their agent to negotiate the best possible deal. If an agent fails to effectively advocate for their client’s interests, it can lead to disappointment.

Communication

6. Poor Communication. This is a frequent complaint. Sellers want to be kept informed throughout the process, and a lack of                     responsiveness or updates can lead to significant frustration.

7. Inadequate Feedback. Sellers want to know what potential buyers think of their home. A lack of feedback after showings can                 leave sellers feeling uninformed and anxious.

8. Not Addressing Concerns. Agents that do not listen to the sellers concerns and address them in a timely manner cause                          frustration.

9. Honesty. Sellers need honest feedback about their home’s condition and marketability. Agents who avoid difficult                                       conversations so as to not upset the seller can hinder the selling process.

10. Disappearing Agent. Once the listing agreement is signed, some agents become less responsive, leaving sellers feeling                            abandoned. The list it and forget it agent is a big turn off for sellers.

Decades of Experience

In all our years of experience we can say little has changed over the years. The reasons sellers become frustrated with their listing agent hasn’t changed either. Our team has been through up, down, and sideways markets and sellers have the same frustrations today as they had back in the 1980’s. Sellers want an experienced agent with marketing muscle to make their home stand out, and an agent that listens and communicates. Is that too much to ask for?

We don’t think so. It takes a caring person with systems to pull this off. An agent has to be willing to spend their own money to market a client’s home because the broker advertising won’t make a home stand out.

Culture

The agent must have people to help, as it is too big for one person to do it all. The people on the team must share the leader’s vision of communication, marketing, feedback, and honesty. When you find a team like that with experience, hire them.

There are good agents out there struggling to provide everything a seller needs. Failure to provide any of these needs leads to frustration. The real estate industry is consolidating now, and it is pressuring agents to do more. It takes money to advertise, and time and money to train people.

Teams

Not all teams are created equal. Some teams are two or more agents that simply partner together and do the same thing. A true team divides up tasks and has experts specializing in what they do best. In this way, the whole is greater than the sum of its parts and true synergy is achieved.

If you’re thinking of selling, always call the Ellis Team at Keller Williams Realty 239-310-6500 We’d love to sit down with you and see how our team can help you achieve your goals.

Good luck, and Happy Selling!

See last week’s article “March Housing Supply Increases in Lee County”

Latest Sales Numbers

Zillow Vs Realtor.com Vs Homes.com Analysis

The real estate market is constantly evolving, and today’s conditions demand a nuanced approach with shifting market pricing strategies. Gone are the days of simply listing above comparable sales and waiting for a bidding war. In a shifting market, strategic pricing is crucial to attracting buyers, minimizing time on the market, and ultimately, maximizing your return on investment.

Shifting Market Pricing Strategies

Before diving into specific strategies, it’s essential to understand the current market dynamics. Are interest rates rising? Is inventory increasing? Are buyer preferences changing? Keeping a pulse on these factors is paramount. Rising interest rates, for example, reduce buyer purchasing power, making price sensitivity even more critical. Increased inventory means more competition for sellers, requiring a sharper pricing edge.

The Pitfalls of Overpricing

The temptation to overprice is understandable. You love your home, and you want to get the best possible price. However, overpricing can be a costly mistake. It can lead to:

• Limited Buyer Interest: Buyers often start their search online, filtering by price. An overpriced home may not even appear in their search results.
• Extended Time on Market: The longer a home sits on the market, the less attractive it becomes to potential buyers. It can create a perception that something is wrong with the property.
• Price Reductions: Eventually, an overpriced home will likely require a price reduction. However, initial price reductions can make buyers wonder if further reductions are coming, potentially leading to lower offers than if the home had been priced correctly from the start.
• Stigmatization: Nobody wants the home that has been sitting on the market for an extended period.

The Power of Strategic Pricing

So, what are the keys to pricing your home effectively in a shifting market?

• Accurate Comparable Market Analysis (Comps): Your real estate agent will conduct a thorough analysis of recent sales of similar properties in your area. This is the foundation of sound pricing. Pay close attention to the “days on market” for comparable sales. If similar homes are selling quickly, it indicates a stronger market.
• Consider Market Trends: Beyond comparable sales, analyze current market trends. Are prices generally trending upward or downward in your area? Are interest rates rising or falling?
• Evaluate Your Home’s Condition and Features: Is your home updated and well-maintained? Does it have desirable features that are in demand? Factor these elements into your pricing strategy. A move-in-ready home will command a higher price than one needing significant repairs.
• The Psychological Impact of Pricing: Consider pricing in a bracket. Pricing brackets exist and knowing where they are is paramount. This can make your home appear more attractive to buyers searching within a specific price range.
• Don’t forget the importance of a skilled real estate agent: They have access to the latest market data, understand the nuances of pricing in your specific area, and can provide invaluable guidance throughout the selling process.

Adapting to a Buyer’s Market

If the market is shifting in favor of buyers, you may need to adjust your strategy. This might involve:

• Pricing Competitively: Be prepared to price at or slightly below comparable sales to attract attention.
• Offering Incentives: Consider offering incentives such as paying for some of the buyer’s closing costs or including extras.
• Highlighting Value: Emphasize the unique features and benefits of your home.
• Marketing: When there are fewer buyers, you have to spend more to find them.

The Bottom Line

Pricing your home in a shifting market requires careful consideration, market knowledge, and a strategic approach. By understanding current trends, analyzing comparable sales, and working closely with a skilled real estate agent, you can position your home for success and achieve your real estate goals. Remember, the right price is the one that attracts buyers and gets your home sold in a timely manner, maximizing your return in today’s dynamic market.

Always call the Ellis Team at Keller Williams Realty 239-310-6500 for a consultation about your home or visit www.SWFLhomevalues.com for a Free Instant online home value estimate.

Today’s Short for the Day

The Future of Real Estate March 1

See Last Week’s Article “National Home Prices Trend Higher“

Official November sales have been released and so far, we can report 4^th quarter closed home sales down in SW Florida. We started the year off well. September is when we noticed the largest drop off for the year.

4th Quarter Closed Home Sales

Some people blame the election for slow sales in the 4^th quarter. Buyers certainly were holding back during that time period, and that was a common reason given. However, the hurricanes may have played a part too.

Hurricane Helene made landfall in Florida on September 26^th. While offshore to SW Florida, Helene brought flooding and uncertainty about where she was going to go days before she hit. Only a few weeks later, Hurricane Milton made landfall on October 9^th in the Tampa area. Milton came closer to SW Florida than Helene did, and the flooding seemed to be worse.

Both these storms did two things. They impacted some closed sales, and they made buyers think twice about where they wanted to live. Some SW Florida residents grew weary and decided to leave the state altogether. Others decided to move inland more, avoiding the hassle and cost of flooding, and perhaps the higher cost of insurance.

Election

And then there was the election. Nobody knew how that was going to turn out, but people had feelings on both sides. People hold off large purchases when there are unknowns, and typically resume their life when unknowns become known. Regardless of who won, we believe people would go on with their lives. The fear of the unknown is often worse than the reality of the known, even if the desired outcome was not achieved. Now people can move on and deal with facts, even if they do not agree.

Interest Rates

The Fed just cut rates another quarter percent. This hasn’t translated to lower mortgage rates though. In fact, mortgage rates have climbed since the Fed began cutting rates. Many buyers have been waiting for lower rates. Because rates have not cooperated, this may have stalled some home buyers’ decisions.

Next week we’ll have some interesting insight into what buyers may ultimately decide in 2025, and how this could affect home sales. It’s an opinion you probably haven’t read anywhere else, so stay tuned.

Selling Your Home?

Selling a home today requires three things.  Advanced marketing. You’ve got to find a way to make your home stand out. With almost 7,700 single family homes on the market in Lee County, the marketing must work. Secondly, it must be priced correctly. The unfortunate thing is some correctly priced homes still do not sell. Again, marketing matters. Lastly, your Realtor needs advanced data analytics. How do you know where your home needs to be priced if you don’t have analytics on the market?

This isn’t a price it and forget it type of market. The market is changing daily, and sellers need to keep up with the data. Knowing exactly what the market is doing helps you keep one step ahead of other sellers. Remember, your competition isn’t the buyer. It is all the other sellers competing for the same buyers as you.

We hope this weekly article helps you stay attuned to the market. For more advanced analysis, contact Brett Ellis or Sande Ellis at 239-310-6500. We can guide you through the data and marketing maze and get your home sold. When the market makes a move, it pays to know before everyone else. Most sources report the numbers a month or more after they occur, then react. The Ellis Team studies the market daily and provides guidance.

Or, visit www.SWFLhomevalues.com for instant automatic valuations. Computers aren’t perfect, but they are fun to track and do offer some insight. Call Sande Ellis or Brett Ellis for the inside scoop when a computer just won’t do.

Good luck, and Happy New Year!