Lee County Home Prices fell again in June, bringing the median home price to $400,000. Last year it was $430,000, so that was a 7% drop in the last year. In May median home prices were $415,000, so prices are continuing to drop.

Lee County Home Prices Fell Again in June

 

Closed home sales fell 9% from last year, and 18.62% from last month. New pending sales are down 10.5% from last year, so things are not looking up for the coming months. The deteriorating housing market is not surprising as the effects of rising interest rates have had their desired effects to slow things down. The deterioration is usually the worst just before interest rates start declining.

The Fed can lower rates once they see data that the economy has cooled off. The risk is they overshoot the slowdown and things continue to deteriorate after they begin easing rates. Because economic activity is a lagging indicator to rates, it is very difficult to time interest rate hikes and easing perfectly for a smooth landing.

Rate Cut?

Wall Street odds place a September rate cut at 96%. The Economist’s odds are in the 82% range. We believe rates will come down 25 basis points in September or November depending on the data that comes out in the coming months.

Mortgage activity picks up each time interest rates fall. We’ve already seen rates fall about a quarter percent in the last 3 weeks. If economic data becomes bleaker, the mortgage market may react before the Feds cut rates.

Uncertainty

America has about as much uncertainty as we have seen in a long time. Inflation rose at a record pace followed by record interest rate hikes. Too much money has been released into the markets due to government overspending and it has taken high rates a while to influence the labor market and economy. Housing has certainly been affected. Couple the drastic economic fluctuations with a polarized electorate, and assassination attempt of a former president, and the current ruling party forcing their candidate to withdraw from the race, and you’ve got a recipe for uncertainty.

With election season upon us, who knows when the silliness will abate. It’s silly season alright, but there are signs the real estate market could do better in the 4th quarter.

Currently oil prices are declining. Once we have a winner and know the makeup of the White House and Congress, our country can begin moving forward. If we have lower interest rates later this year and things quiet down in the middle east, Ukraine, and Taiwan, we could be in for improving real estate conditions.

I know these are big ifs. However, we must admit we are living in uncertain times, and much is unknown. I watched a documentary the other day that showed how America was similar to 1968. I went back and looked at home prices from 1968-1970 and prices declined about $30,000 adjusted for inflation. I did not study any other economic conditions from 1968 so don’t take this analogy in American history as a predictor of what the real estate market will do.

I think we can all agree it will be nice to settle into certainty. Our home is our castle, and some certainty with our castle will feel more settling.

Like to Sell

If you have a home to sell, always call the Ellis Team at Keller Williams Realty 239-489-4042. We cannot settle the country, but we can settle your situation. With over 37 years of experience, Brett and Sande are uniquely qualified to sell your home in this changing market. We look forward to speaking with you, no matter your situation. We’ve been through changing markets before and hiring a professional that understands marketing must change to meet the moment. Sande and Brett Ellis know how to market to the moment.

If you’re thinking of selling, or tried to sell and it didn’t work out, give us a call. We can help.

Good luck, and Happy Home Selling!

Big Changes Coming August 1

Ellis Team Weekend Open Houses

Open House Saturday 12-3 PM

5407 Parker Dr Fort Myers, FL

5407 Parker Dr Fort Myers, FL
Between McGregor and the River

Open House Sunday 12-3 PM

26236 Colony Rd Bonita Springs, FL

26236 Colony Rd Bonita Springs, FL
Furnished and Ready For You

Fun Real Estate Marketing Videos

The practice of real estate is going to change in a big way as there are major real estate changes coming August 1.

In the old days, and by old, I mean last week, buyers would work with an agent, and they didn’t have to worry about how the agent was going to be paid.  The seller paid for it. Going forward, the seller still may pay it, but what happens upfront is going to change.

Major Real Estate Changes Coming Agust 1

Major Real Estate Changes

Going forward the buyer has two choices. The first is to sit down with an agent and hire them to work with for an agreed-upon amount of money.  Once there is agreement, the buyer and agent can negotiate to get the seller to pay for it. In the absence of that, buyer will pay the amount owed, or the balance of the amount owed if seller is paying for part of it. Or the buyer can say don’t show me properties unless the seller is going to pay for it.

The other option is to not hire an agent and contact listing brokers directly.  Listing brokers are not required to sign a buyer to a buyer agreement on one of their own listed properties. Some buyers will absolutely choose this method as they won’t want to be tied down with anyone.

This second option could get old fast if the buyer is not successful scoring a property. It takes a lot of time to research and call listing agents, attend showings, or attend open houses. Many of these buyers will not have all the required mortgage and insurance approvals needed to move forward on a moment’s notice when they do find a home they like.

The buyers will not necessarily save any money with this second option either because the listing agent will be taking time and doing both ends of the deal or hiring agents to help out. What it will do is relieve buyers from signing a buyer agreement with an agent they don’t know well or trust.

Research Before Signing

Sellers have been signing agreements for years. Before a seller signs an agreement with an agent to sell their home, typically they might research who has a track record of selling homes and interview them to make sure they were a good fit.

Buyers on the other hand worked with the first agent they met and liked. This was probably always a mistake because the first likeable agent might not be the best agent to negotiate your home purchase with. Our advice would be to interview buyer agents the same way a seller would interview listing agents. Ask them key questions about their experience and track record, and what you can expect when you work with them regarding availability, communication, and negotiations. Does your agent have access to key resources like inspectors, lenders, accountants, engineers, CPA’s, lawyers, etc.?

Information is Key

Now more than ever information will be key. Certain fields will be removed from the MLS. Established procedures will be eliminated or redefined. Choosing an agent or a strategy will be paramount in home buying and home selling success. I feel like the new mandatory rules remove transparency and make it harder for consumers to make informed decisions. Removing the fields from MLS will slow things down, but the professionals will rise to help you. Inexperienced agents and less than 100% committed agents will have a tough time, and so will their clients. major real estate changes like this require you to hire the best when buying and selling.

If you’re looking for an experienced team that can help you in the coming days, Always Call the Ellis Team at Keller Williams Realty 239-489-4042 or visit www.LeeCountyOnline.com We’re here to help!

Ellis Team Weekend Open Houses

Open House Saturday 12-3 PM

5407 Parker Dr Fort Myers, FL

5407 Parker Dr Fort Myers, FL
Walk to the River

Open House Saturday 12-3 PM

14386 Reflection Lakes Dr Fort Myers, FL

14386 Reflection Lakes Dr Fort Myers, FL
Reflection Lakes Home-Remodeled and Ready for You

Open House Sunday 12-3 PM

10813 Dennington Rd Fort Myers, FL

10813 Dennington Rd Fort Myers, FL
Bridgetown at the Plantation Pool Home

Traditional sales dominate SW Florida real estate market, but that doesn’t stop buyers asking how they can buy foreclosures and short sales. Every week we get calls from buyers looking for off-market properties and distressed sales.

This tells us a few things. First, they’ve looked at everything available on MLS and have not found anything that meets their criteria. Secondly, these buyers have an expectation that our market is distressed, and they want a deal.

Traditional Sales Dominate SW Florida Real Estate Market

With one glance at the chart, you will see that foreclosures are practically nonexistent in the Lee County single family housing market. Less than .6% of our home sales were distressed in May. We had zero short sales and only 8 foreclosure sales in MLS.

There will always be a few distressed sales in almost any market. The 8 foreclosure sales are negligible statistically. I remember about 70% distressed sales back in 2008-2009. Our market is nothing like that time, for many reasons.

Speculators

Back in the 2005 market we had speculators purchasing properties as fast as they could and flipping to another speculator. There was never an end-user in sight, but that didn’t stop the speculating. I don’t call these people investors because they didn’t follow any of the typical investing strategies. These speculators operated on the “what a bigger fool will pay” theory until the music stopped. It worked for several years, until it didn’t. All they did was finance the overproduction of homes with cheap capital.

Fast forward to today. During the runup from 2020-2022 we had end users in every home. That was true for owners and renters. You could hardly find a home to move into no matter your financial wherewithal.

What hurt this market was the combination of things. Hurricane Ian did not help. Rising interest rates hurt the ability of homebuyers to afford homes at the current prices. Add to that the rising cost of homeowners and flood insurance, and we had a recipe for a strain on affordability. Lastly, some employers have been calling their people back to work at the office. This has led some that moved here because of Covid to move back.

Affordability Strain

Housing inventory is up 82.8% versus last year, but median home prices are only down 6.7%. There is no doubt housing affordability has put a strain on the real estate market, and most is the result of rising interest rates. As the economy slows down, rates may begin to drop. The official forecasts are rates should hold steady in 2024 and perhaps begin to drift lower. In 2025 rates should begin to drift lower. Forecasts range from about ½% to 2%.

Buyers may not want to wait for rates to fall a full 2% for two reasons. One, it may not happen. Secondly, all the other buyers will be jumping back in, and they will be competing with each other. Right now, the seller is on the defensive and wondering when this market is going to turn around. Once rates start declining, the buyer may not have the advantage over sellers like they do today.

MLS Search

The best website to search for properties is www.LeeCountyOnline.com Bookmark this site. Things are changing in the real estate industry, and when the changes hit in August, popular portals like Zillow and Realtor.com may not offer as many tools and properties listed as LeeCountyOnline.com does.

Always Call the Ellis Team at Keller Williams Realty 239-489-4042 with your real estate questions. We are here to answer your questions on the upcoming changes in August as well.

Good luck, and Happy Home Shopping!

Ellis Team Weekend Open Houses

Open House Saturday 12-3 PM

2752 Geary St, Matlacha FL

Matlacha Waterfront Home with new dock and boat lift

As Seen on TV Fox 4 Out and About South West Florida

Open House Sunday 12-3 PM

14386 Reflection Lakes Dr, Fort Myers FL

Reflection Lakes Home Fort Myers FL

Open House Sunday 12-3 PM

26236 Colony Rd, Bonita Springs FL

Imperial Harbor Home

The Ellis Team has been hard at work producing some fun real estate marketing videos people would like to watch. Sure, when you’re interested in a specific property you’re going to watch a video on that home, and maybe similar homes.

Ellis Team YouTube channel with Fun Real Estate marketing Videos playlist
Ellis Team YouTube Channel

Many people enjoy market update videos as well, and we’ve got those. One thing we find is that people also want to be entertained. I know I’ve been stuck down the video rabbit-hole watching suggested videos for what seems like hours. The intrigue is you never know what you’re going to see next.

Fun Real Estate Marketing Videos

Our goal is to step up our video marketing game, and we’ve produced some fun videos we think you’ll enjoy. The first video this past week was a suspicious activity report we received in one of Fort Myers neighborhoods. We sent out a reporter to investigate, and I think they found out what the commotion was about.

Fun Real Estate Marketing Videos

Another video shows a charming waterfront home in Matlacha just minutes to big water and championship fishing.

 

The next video shows two Ellis Team agents previewing a new listing for an upcoming open house and what happens next is unbelievable. We won’t spoil the ending, so let’s just say everyone is surprised, even our two agents. They’d never seen or experienced anything like it, and you’ll get to see it for yourself.

Of course, we have some bloopers, but you’ll have to wait for those. We think this past week’s videos will be entertaining enough, and we can’t wait to bring you some bloopers soon enough.

Where to View

How can you view these videos? We have several ways.

YouTube  www.youtube.com/TopAgent

Facebook  www.facebook.com/ellisteam

Instagram  ellis_team-fl

We don’t always post the same videos on each service, but this week we plan to. I used to think the best teachers were the ones that made class interesting. We feel the same way about video. Our team strives to make fun real estate marketing videos because we like to have fun, and it shows. We also love to inform.

If you’ve got questions, chances are we’ve got a video that may help. Of course, the videos are no substitute for speaking with Sande, Brett, or a member of our team. We enjoy dealing with people, and we know sometimes people want answers without having to speak to someone.

Between our real estate video, our online property valuation tool, our MLS property search www.LeeCountyOnline.com, and our Blog Blog.TopAgent.com where we have thousands of articles, we think you can find the answers you’re looking for. And if you’d like to speak with us, we’d be even happier.

When the time comes to buy or sell real estate in SW Florida, or anywhere in the country, we hope you’ll think of us. Simple call us at 239-310-6500 When you just want to search on your own for homes or advice, we’ve got you covered there too.

Big Changes Coming

We’ve got some big changes coming in the real estate industry. Many people don’t know that they will have to hire a real estate agent and enter into an agreement with an agent before seeing homes. These changes are coming in the next month, and they will not be optional. There are a few exceptions, and we plan to produce some videos explaining the new rules, the new forms that will be required, and the few exceptions. August 17th is the absolute deadline, but some MLS changes will occur on August 1st.

Knowledge and Experience will matter now more than ever before. Don’t settle for a real estate agent.  Hire a real estate professional who knows how to work in the new environment. Some buyers and sellers are going to be very happy, and some will be frustrated. The agent you hire will make all the difference.

Good Luck, and Happy House Hunting!

Ellis Team Weekend Open Houses

Open House Saturday 12-3 PM

10813 Dennington Rd Fort Myers, FL 33913

10813 Dennington Road
Gated Community

Open House Sunday 12-3 PM

5407 Parker Dr Fort Myers, FL 33919

5407 Parker Dr Fort Myers FL 33919
Between McGregor and River

 

 

May closed home sales rose 2.7% over last year’s numbers in May, showing that buyers are active in the market when affordability shows up.

May Closed Home Sales Rise 2.7% over 2023

Interest rates ticked down, which helped with affordability, and single-family median home prices were down 6.7% from last year as well. Both factors contributed to an uptick in closings and pending sales.

Pending single family home inventory is up 18% over May 2023, and internal data suggests inventory has capped in June even though official May numbers show inventory is still rising. Official numbers lag our internal data collection in real-time.

Condos

Lee County condos are another story. Closed sales are down 16.1% from last year, and inventory is up 122.9%. We currently have a 10-month supply of condos on the market. New pending condo sales are down 24.9%. The median sales price of a condo in Lee County was down 2.9% from last year. Some condos are easier to sell than others. Factors that affect salability include whether the master association has a flood policy, because this affects if lenders will lend. Other factors include the total cost of condo/HOA fees and insurance.

Forecasts

Forecasts continue from FNMA continue to show 2024 should be a better year than 2023 in closed sales. FNMA is predicting a 9.0% increase in the number of single-family home sales. This could be because inventory has been tight across North America, and they are expecting more to come on the market. However, this coincides with what we are seeing in SW Florida home sales.

Many people believe nothing is selling, and it only feels like that when you see homes sitting on the market longer. The reality is more homes are selling this year, so long as they are marketed correctly and priced properly. Buyers have less motivation than they did a few years ago, and higher prices, higher interest rates, and rising insurance costs caused this.

While home sales are rising, we can continue to see home prices fall more. 7.1 months’ supply of single-family homes means we are in a buyer’s market. Even though we are tracking declining inventory in June internally, inventory levels have only slightly decreased. Prices are a lagging indicator to inventory. Additionally, we’ve seen a 4-week reduction in inventory, but that’s not enough to call it a defined trend yet.

The Good news is inventory has stopped rising in June. Prices may continue to fall, but at some point, that will level out if we continue to close more units and inventory declines. We expect interest rates to fall slightly by end of the year, and again slightly in 2025. If we can get insurance under control and escape hurricane damage this year, 2025 may be brighter than 2024.

Prime Time

The 2nd half of 2024 may be prime time for buyers. Prices have been coming down while there is an excellent selection of homes available. Sellers are willing to negotiate, and rates are coming down a little. Buyers may lose some leverage heading into 2025 and may look back on 2024 as the prime time to purchase. Originally, we thought the first 6 months of this year would be prime time for buyers, but the timeline got pushed back because of inflation. The Fed was not able to begin lowering rates due to pesky inflation. We hope future inflation readings will be kind so the Fed can act later this year. The absolute earliest they would change would be at the September meeting, and it could go until November, depending on the data.

Home Value Tool

We’ve got a new tool on our website www.LeeCountyOnline.com that provides an instant estimate of your home’s value. Additionally, it provides an equity analysis on your home, and allows you to ask questions about your neighborhood and the market. It’s a great way to explore home value options, even if you’re just curious about the market. Check it out.

And remember, Always Call the Ellis Team at Keller Williams Realty 239-310-6500 with your real estate questions. Brett and Sande are here to listen and help you.

Good luck, and Happy Selling!

Suspicious Activity in Fort Myers Neighborhood

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.

Listing Inventory Declines Third Straight Week

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!

Video of our New Home Value Tool.

Ellis Team Online marketing Program Producing Results.

Here are the ad results from last week’s Ellis Team online marketing program. We held two open houses, and for the purposes of this article we’ll show results from one of them.

We advertised 5407 Parker Dr online and several people showed up to the open house. In addition to our print ads, newsletters, email campaigns, signs, online portals, etc. we also do targeted and segmented online ads.

Ellis Team Online Marketing Program

The first ad result is from our segmented ad. The ad produced a click-thru ratio of 19.79% which is very high. There is a reason for this. The industry standard is 1-2%.  Of those clicks, our website converted 21.62%, which is also very high. What this tells us is we are reaching the right people, and they are engaging and learning more about the home.

Ellis Team Online Marketing Program Producing Results

The second ad was a targeted ad. It was designed to reach a larger group of interested buyers. And it did. It had a very good click-thru rate of 7.65%. It was not designed to gather customer info but rather expose the home to more people interested in real estate in SW Florida.

Both ads are different than traditional boosted ads because those ads are simply blasted to online users and not necessarily people interested in real estate.

What’s the Difference?

You might ask, what is the difference between a targeted ad and a segmented ad? A targeted ad takes data from Facebook, Realtor.com, Zillow, and other sources and targets people with an interest in real estate.

A segmented ad is Ellis Team Online Marketing internal data we have collected from tens of thousands of buyers for SW Florida. We know exactly what these people are looking for because they are on our website searching all the time. We are able to segment them based upon what they are searching for and serve up ads that meet their criteria. It is a much higher level of marketing. It requires technical expertise, and of course the data.

Because the Ellis Team online marketing program has been so successful over the years, we have data nobody else has. We use this data to benefit our sellers, and it works.

What it Doesn’t Do

The Ellis Team Online Marketing Program does not sell homes. It is designed to get our listings in front of the best buyers. Our people is what sells the home. Technology will not sell a home, but it can speed up getting in front of the right people. Our buyer agents are trained to be the best in the business. Marrying the best advertising with the best leads, working with the best agents equals a seller’s best chance at selling their home faster and for more money.

If a home is overpriced, the marketing won’t matter. The fact is some listings in SW Florida are overpriced. However, some sellers are reluctant to lower their price because they’re not convinced their home has been market properly. If a home is marketed like the Ellis Team online marketing program, the problem is not the marketing. It’s the price.

Condition

Some might say, it’s not the price, it’s the condition. Again, it is the price for the condition the property is in. Can a seller improve their value by improving the condition? Yes, they can minimize the loss in value due to condition, or neglected upgrades.

A seller will never know the reason their home did not sell if the home was not marketed for all its worth. If you have a home that did not sell, call Sande or Brett Ellis at 239-310-6500. We can take a look at the marketing your agent did and the price and help you make some decisions.

If you’re thinking of putting your home on the market, why not start out at the Top? Call us today, or email us at Sande@topagent.com or Brett@topagent.com We’ll help you sell your home and onto your next venture.

Find out what your home is worth online instantly.

Good luck, and Happy Selling!

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.

Home Seller Price Reductions

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!

Ellis Team Weekend Open Houses

Open House Saturday 12-3 PM

Open House Sunday 12-3 PM

We are already seeing real estate consolidation trends, both at the agent and brokerage levels. As business slows for some agents, they begin looking for alternatives to stay in the business.

 

Real Estate Consolidation Trends

Making the Switch

Online real estate agents nationwide are asking questions about brokerages. The questions range from who offers the best split, to real estate software provided, to profit sharing. In almost every instance, the inquiring agent production is down, so they start to look around.

Real estate coaches online have chimed in. The answer isn’t which brokerage offers the best software, or the highest split. The answer is, what are you doing to create sales? It won’t matter which brokerage an agent is at if they aren’t doing activities to create sales.

The typical agent wants leads and buyers wrapped up in bows ready to buy. When the market shifts, buyers are more indifferent, and getting them off the fence requires skill, patience, activities, and relationship.

Agents that are doing business understand this, and they are active. The problem is, only about 5-10% of the agents are highly active, communicating with their database, and marketing listings. The rest are struggling and reactive. Consumers don’t always know who these 5-10% are, so they work with an agent until they are disappointed. Agents aren’t the only ones making the switch, consumers are too!

Light Bulb Goes Off

It is at this moment buyers and sellers seek out a higher-level agent. Consumers start asking tough questions. The conversation shifts from how much do you charge to what level of service can I expect from you? Consumers ask to see proof of marketing. They may want to see a list of recent past sales or talk to a few of your past clients. A shifting market is where rubber meets the road, and results matter.

In a normal market, consumers think that all real estate agents are the same. If they all do the same thing, and get the same results, why should they pay more from one versus another. When the market shifts, it exposes agents with fewer skills and marketing, and shines a light on those that produce results.

Brokerages are no different. In the absence of value, agents will switch to another brokerage. The agents not doing any business won’t make a difference, but agents that are producing have value to the brokerage. Losing agents who produce is never a good thing, so brokerages must provide value.

Independent Brokerages

It is getting harder for independent brokerages to compete in a world fueled by large advertising budgets, expensive software, and high lead generation costs from the online portals. Online portals are one of the biggest threats to smaller brokerages for too many reasons to list here. This is why we are seeing many independents retain their name but becoming powered by companies like Keller Williams. In this way, they can retain their name and the way they like to do business and marry it with the advantages of high-tech software, models, and systems. Not to mention joining a large referral network that brings in buyers.

The SW Florida real estate market is steady. Some say it is stagnant and nobody is buying, but the statistics say otherwise. 335 single family homes closed in the last 7 days in Lee County. Somebody is selling those homes.

Real Estate Consolidation Trends

We expect more consolidation and migration to those agents that are advertising heavily and working their database. Sellers will demand it. We see it every shift, and it is happening again. You don’t have to suffer with no showings and no offers. An experienced agent can show you the way.

Call the Ellis Team at Keller Williams Realty 239-310-6500 if you’re thinking of selling your home this summer. We can get your home advertised and sold.

Good luck, and Happy Selling!

New Listing

4129 Spotted Eagle Way, Fort Myers Fl

Eagle Reserve

Ellis Team Weekend Open Houses

Open House Saturday 12-3 PM

14386 Reflection Lakes Dr, Fort Myers

Reflection Lakes Fort Myers Open House
Open House Sat 12-3 PM

Open House Sunday 12-3 PM

10813 Dennington Rd, Fort Myers FL

Bridgetown at the Plantation Open House
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Both housing supply and demand level off in the latest statistics produced by the Ellis Team at Keller Williams Realty.

Housing Supply and Demand Level off in Lee County

Last year we saw single family home inventory supply drop from April 25th to May 2nd. Some of that could have been expired listings. In 2024, we are seeing a trend of leveling off. Pending sales have remained remarkably steady since February 20th of this year.

Ellis Team Current Market Index

The current market index stands at 3.05 and has also remained steady. It rose slightly in the last week, but we’ve been watching numbers in the low 3 range since March 12th. The current market index accurately predicts future price appreciation or reductions going forward.

We finally received some good news on the interest rate front which has led to slightly lower rates. The economic news was bad for employment, which is good news for possible rate cuts later this year. It’s the first good news for future interest rate cuts we’ve received. Wall Street went from betting on no cuts this year to a possible rate cut or two by the end of this year. Inflation numbers have not been good and going in the wrong direction, so betting the farm on one payroll report probably doesn’t make sense. But hey, Wall Street likes optimism wherever it can find it.

Housing Supply and Demand Level

If current housing and supply level remains the same or gets better, coupled with lower interest rates, we could see strengthening in the housing market going into 2025. We are not saying price reductions will suddenly stop as there are still more sellers than buyers. We are saying, once the market chooses a direction, those price reductions will begin working their way through the system and eventually the market will level out.

Like a Train

The housing market is like a train. Once it builds momentum, it takes awhile to brake, or change direction, even if market indicators begin to shift. A train has built up residual energy that must be released before it can brake. If economic indicators suddenly became clear, there would still be price reductions until the market cleared excess inventory.

2025

 2025 could be a year for real estate recovery. Of course, we do not know if the economy will have a soft or hard landing. That outcome will determine how many people still have a job and how many can purchase. Additionally, we do not know if we will have stagflation, which is persistent higher than welcome inflation coupled with low to no growth. If this happens, we may not see a recovery until later 2025 or 2026.

So much economically is unknown. Because of this, nobody can predict what the stock, bond, and real estate markets will do. We can report only what we see, and the good news is the housing supply and demand level is stable and doing well. We’ll be keeping an eye on future economic data and housing statistics, along with the Ellis Team Current Market Index.

Thinking of Selling?

You should call the Ellis Team at Keller Williams Realty 239-310-6500 Brett and Sande can guide you on the latest data. We have the most advanced marketing system in the area, and we’d love to show you how it’s different, and why it’s producing results. Or visit www.SWFLhomevalues.com to get your home’s price instantly.

Good luck, and Happy Selling!

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