Fort Myers Archives - Fort Myers Real Estate and Homes For Sale

SW Florida August home prices stabilize ending a three month decline in average home prices. Median home prices peaked in May and only slightly declined in July. Median home prices held steady for August.

We are watching daily inventory counts to see if there is any movement. If anything, inventory has declined since August numbers. We do not see building inventory and many properties are still receiving multiple offers.

Interest Rates

Today as I write this article the 10-year note stands at 1.529% That number will fluctuate throughout the day. It has trended up the past month. For instance, it was about 1.289% a little over a month ago. The reason we track this financial instrument is because 30-year mortgages are pegged to the 10-year note. My unofficial formula is adding about 1.6% to whatever the 10-year note is, and it will get you close to current mortgage rates.

That would put us close to 3.125% to 3.25% interest rate, which is about where rates are at with no points. Rising rates can motivate buyers to buy now, but it also cuts into purchasing power. Rising rates may not make a difference now as we have more buyers than sellers, but someday it could if the market slows down.

Inflation

We are also watching the price of oil. Rising oil is a clue to rising inflation and a barometer of pressures on bond yields which influence interest rates. As of today, West Texas intermediate crude oil is at $79. This is up significantly and could lead to more inflation.

If congress passes more unfunded spending in the wake of rising inflation, it could spark interest rates rising faster. If that happens, all eyes will be on stock markets and real estate markets. The United States is at a precarious time with our debt to GDP ratio, and any moves could trigger interest rate swings.

If financial markets do swing, the next question is what effect will that have on consumer behavior? Where will people want to live if they leave their job? We are also at a critical time with jobs and vaccinations. The federal government is mandating all health care employees be vaccinated or health care providers will lose their Medicare funding. No hospital or large provider can afford to do that. The question is. How many people will quit or be let go from their jobs in health care?

It is not just healthcare either. Many teachers are facing the same dilemma. In New York alone, we have heard reports of 150,000 teachers at risk of losing their job.

Vaccine Mandates Effect on Real Estate

If the mandates stick, will these people stay where they are or make a move? Florida has been a popular destination. With so much uncertainty, it will be fascinating to watch how these factors play out. In any such transitions, there are always winners and losers. What effect this will have on Florida and our real estate market remains to be seen.

Rising rates tend to temper the market. Changing demographics can further exacerbate a declining situation or moderate losses, depending on where you live.

For anyone to tell you they can predict the future right now would be absurd. All we can do is open a window into our thinking and show you some of the factors we are looking at. We have a list of 7 key indicators we will be tracking.

One thing is for sure. Ellis Team clients will always have the latest information on what we are seeing. We feel it is our duty to buyers and sellers to have our latest research. It is part of why people hire us. We do not mind sharing some of this research with News Press readers as we feel the public should be informed.

If you are interested in selling, always call Brett or Sande Ellis 239-310-6500. We can discuss what we are seeing and how this will affect your property value. For a free online instant property valuation, visit www.SWFLHomevalues.com Our system will update you every month the value of your home.

The Ellis Team looks forward to speaking with You!

Ellis Team Contest

Call in to Win some Great Prizes

Ellis Team Weekend Open House

Hendry Creek

Open House Saturday & Sunday 12-3 PM

15666 Light Blue Cir

Ellis Team Open House — Hendry Creek Waterfront Open House

Home sales fall behind 2020 levels in August for the first time this year. Is this a sign of a slowing real estate market, or simply lack of inventory?

Home Sales Fall Behind 2020 Levels

Last week we reported inventory increased for the fifth straight month. In February, listing inventory stood at 1.916 homes. In January listing inventory was 2203. August listings were on its way up at 1,764. Perhaps we need inventory levels closer to 2,000 or more to sustain the blistering pace we have seen this past year.

It could also be that inventory is rising, sales are slowing, and buyers have cooled off. Home prices peaked in April and May and saw a decline. Funny thing though, median home prices stabilized in June and July while average prices went up slightly in August.

If the market was declining, we would expect to see the trifecta of rising listing inventory, declining sales, and declining prices. Right now, we have two out of the three, and it is quite possible sales will pick up as inventory increases.

It is also possible rising interest rates will deter some home buyers. October 1^st will bring in flood insurance changes which will raise rates on some. Rising insurance costs can affect home affordability.

Florida is still a state where people are attracted to. Some northern states markets have begun to cool a bit while others have not. It is safe to assume, Florida is an attractive option for many up North which adds to our demand. As listing inventory increases, we may very well have excess demand to make up for the inventory.

In any market, many homes sell, and some fail to sell because they were overpriced. When a market begins to shift, you do not want to overprice. I am not saying our market has shifted or will shift anytime soon. All markets shift eventually. Proper pricing becomes critical when they do. To be honest, proper pricing is always critical. Would you believe that in this great market, some sellers have failed to sell? It is true, and it happens in all markets, up down, and sideways.

Hire the Right Agent

Hiring the right agent is critical now. Marketing and negotiating matters more than ever. Some mistakenly believe they can throw a home on the market, and it will sell. The truth is it might sell. The question is, did it sell for as much as it should have or did seller leave money on the table? There is an art and science to getting what your home is worth. It takes knowledge, experience, skills, and marketing. If you thought it was expensive hiring the best agent, just see what it costs you hiring the wrong one.

As we study the market, we will be looking at several key indicators. Of course, we will watch home prices. We will also watch inventory levels, sales velocity, dollar volume, and bring back and track our current market index which helps predict forward motion of the market. If you do not know what the Current Market Index is, search for it on our Blog https://blog.topagent.com

If you are interested in selling, call Sande Ellis or Brett Ellis at 239-310-6500 or visit www.SWFLHomevalues.com to find out what your home could be worth.

The market goes up, the market goes down, and sometimes it just goes sideways. Do not let the market dictate your decisions. Talk to the Best and get your questions answered.

The Ellis Team has been voted the Best in Real Estate for 7 straight years in the News Press Readers poll. We thank all our past and future customers. We look forward to helping you buy or sell your next SW Florida property.

Ellis Team Weekend Open Houses

Saturday Open House 12-3 PM

Open House Sunday 12-3 PM

Lee County listing inventory increased fifth straight month which has led to a leveling off in home prices. We are seeing September daily listing inventory counts drop slightly so we will keep an eye on official numbers when they are released next month.

As you can see by the chart, listing inventory is still very low comparatively speaking. We look at actual numbers and the trends. The actual numbers tell us where we are at a point in time, and trends can give clues about the future. Once a trend emerges it does not mean it will stay, so we must be careful predicting the future based upon a small trend in data.

Median home prices peaked in May and June and slipped a bit in July, however they held steady in August. Average home prices peaked in April and slipped in May, June, and July. Average home prices rose slightly in August, confirming the trend that home prices have leveled for now.

Seller’s Market

With 1.1 months of official inventory, we are in a seller’s market. August saw a rise in new listings of 3.6% and a drop in new pending sales of 10.2%. The daily inventory numbers are telling as well, and we may see the SW Florida real estate market pick back up again. Rentals are very expensive, and in many cases, it is cheaper for a buyer to purchase than rent.

The number of homes closed fell again for the second straight month. Nationally mortgage applications are picking up again. With Covid cases decreasing dramatically in Florida and the return of Fall, we may see the market heat up once again.

What is unknown is when and how fast interest rates will climb. The expectation is the Fed will taper asset purchases which have helped keep rates low. We expect the Fed to announce the start of tapering in November which means rates could rise by the end of the year.

Increased borrowing costs will cut into buyers purchasing power. Eventually decreased purchasing power helps cap price increases. The fascinating thing to watch is that the US has been short building units to the tune of 5 million plus. This has caused a shortage in supply. Housing demand is strong. These two forces are at odds with each other, and whichever wins out will hold the key to the direction in home prices.

It is quite possible they will temper each other. If this happens, we will return to normal price swings and a leveling off, which is a good thing.

Time for Seller’s to Sell

The takeaway for sellers is now may be the time to sell. The takeaway for buyers is now may be the time to buy. If you are a seller looking to purchase a home with a mortgage, this is especially true for you.

You might ask, how can it be a good time for buyers and sellers to make a move? The answer is, it may cost both groups to wait. Most people think of buyers and sellers as dueling warriors, and one must win to the other’s detriment. The reality is, in this market, both can win now, and both can lose in the future by waiting.

We live in interesting times. So many factors are affecting our economy, from supply side shortages, to rising rates, to rising inflation. The Delta variant changed things for Floridians for a few months. Assuming no new major variants, between the vaccinated and those with natural immunity, Florida is shaping up to be in good shape going forward. This Fall and Winter will be interesting to watch.

Always Call Brett or Sande with your real estate questions 239-310-6500 or visit www.SWFLHomevalues.com to get an instant value on your home.

The Ellis Team at Keller Williams Realty is here to help you with your questions. Good luck, and Happy House Hunting!

Ellis Team Weekend Open Houses

Open House Saturday and Sunday 12-3 PM

1936 Savona Parkway, Cape Coral

We are studying preliminary sales numbers for August from MLS. The numbers suggest a soft landing for sales prices in SW Florida.

Golf courses in Florida are mostly flat because much of Florida’s terrain is flat. Up North, many golf courses have elevated greens and greens that are downhill. This past year our local real estate market felt like buyers were having to hit elevated shots to an elevated green to get their offer accepted.

Golfers know that for every elevated green there may be future shots to a downhill green. Buyers have the same assumptions as golfers. They believe what goes up must come down.

Soft Landing for Sales Prices

The reality is, the elevated green is the new level playing field. While we will still have multiple offers on properties due to low inventory, we don’t believe the overall market is going to climb like it did this past year. In fact, we are already seeing in the numbers a leveling off. This is a trend that has been happening for about 3 months, but because it doesn’t feel like a flattening market, sellers and agents have not recognized it.

If you speak with real estate agents lately, they will tell you the market has cooled in the last few weeks. The market has not cooled, it has leveled. When sellers bring a property to market correctly priced, there are many buyers. When a property enters the market overpriced, we don’t have 50 buyers jumping at opportunity to bid on it.

Diminishing Price Increases

We saw 36% price increases year over year, but as we enter future months those will begin to diminish as prices have stopped rising. We will still see year over year gains until one of two things happen. As prices are stagnant, we will either run out of months and stats will show a leveling or the market will move once again.

If the market does not make a move, you will see prices staying the same. We are already seeing this in the month over month prices. Unofficial numbers for August show an average sales price of $466,281 and a median sales price of $365,000. July 2021 official numbers showed an average sales price of $469,072 and a median sales price of $360,000. In essence, the average price went down about $3,000 and median price went up about $5,000. Keep in mind, these are still unofficial numbers. There could be more sales reported from MLS participants from other boards throughout the state.

These numbers are believable though because we have been seeing this trend. Prices since April and May have leveled off. Some is seasonal, and some is buyers have maxed out.

Sellers Should Sell Now

Listing inventory has leveled. It’s not going up or down. We are telling sellers now may be the time to sell. There is not much advantage in waiting now. We have low inventory. Prices have stalled. Interest rates are expected to climb when the Fed ends tapering. This will put pressure on buyers and further cap future gains. It just feels like this market is now fully valued unless something changes.

For years we said Florida was undervalued. Today, it might be fairly valued. We are not expecting prices to vary wildly. We believe we are in a trading range.

Buyers should take advantage before rates rise and sellers should take advantage of the new normal in pricing. Both sides can do well if they do not get greedy. Waiting for a better opportunity tomorrow just doesn’t sound like the best plan.

If you’d like to talk about the market, call Sande or Brett Ellis 239-310-6500 or visit www.SWFLHomevalues.com to track your home’s value monthly.

Always call the Ellis Team at Keller Williams Realty. We are here to help!

While analyzing current market statistics we see September inventory levels rise slightly in select price ranges. Six out of nine price ranges saw an increase in the month’s supply of inventory while five of nine saw an increase in the raw number of listings.

September Inventory Levels Rise Slightly

Four out of nine price ranges saw an increase in the number of sales. In a hot market, you can only sell what you have. As prices increased, some homes graduated to the next price level which increased their inventory, and increased chances of a sale in that price range.

With multiple offers, sometimes we would see a listing in one price range result in a sale in a higher price range because it sold over asking price. For this reason, we must be careful about analyzing the numbers and interpreting what they really mean.

Inventory Still Historically Low

The overall market still stands at less than 1 month supply, which is low. A buyer can assume any listing in any of the price ranges could be receiving multiple offers if they were priced correctly coming to the market. There are some overpriced listings, and no matter how hot the market is, may never sell.

As more listings enter the market, buyers have slightly more choices. The good ones still get swallowed up fast. It is important for buyers to have their ducks in a row before they go shopping.

We monitor the monthly numbers, and we are studying the weekly numbers. We saw a 9-home decrease in the weekly numbers which means more homes came off the market than went on in the last week. Because this market is so hot, we expect volatility in those weekly numbers. It could also be sellers were waiting until after Labor Day to place their home on the market while buyers did not wait.

Interest rates rose slightly in the past week. Rising rates increase the cost of borrowing for buyers. Initially rising rates adds motivation to buyers to purchase before rates go higher. This assumes buyers were sitting on the fence. In our current market it is more likely buyers could not find a home as the winning bid, so they settled for a rental for another year.

Rents are sky high currently. As tenants come off lease we expect them to look to purchase if they can find a home. As the eviction moratorium abates, we expect rent prices could come down.

Eventually rising rates will hurt home buyers. The wildcard will be if home buyers soften due to rising borrowing costs, how does northern buyers relocating here compensate for that? This past year financed buyers were not winning many bids anyway so rising rates would have made no difference. If buyers continue their march to Florida, rising rates might not matter. We will keep our eye on migration patterns.

Is Now a Good Time to Sell?

Many homeowners are contemplating if now might be the time to sell. Prices have risen a good amount, and some are surprised at how much their property is worth. Homeowners also realize we are not likely to see price gains like this going forward. Nobody knows the future and where prices will go. We think it is safe to say prices will not rise 36% in one year again anytime soon.

If you have been wondering if now might be the time to sell, call Brett or Sande Ellis at 239-310-6500 We will be happy to speak with you and discuss your options. Some sellers appreciate our Free and easy home valuation tool where you can see your home’s value online instantly. The system will also email you updates every month so you can track your home’s value going forward. This is great for people who do not want to sell now but are interested in their home’s value.

Good luck and Happy Home Buying and Selling!

See last week’s article “Local Home Sales Highest on Record“

Recent statistics show local home sales highest on record. Keller Williams Realty International predicts 2021 will be the 5^th best year in real estate sales nationally just behind 2020 levels.

Locally we are seeing a slowdown in the number of homes closed. The tail end of this year could bring fewer transactions, but will the slowdown be enough to place us behind 2020 numbers? Through July home sales are up 38.33%. We only need 4,328 sales from August through December to match 2020 levels. That is approximately 866 homes per month. Our lowest month of the year was January at 1,221 homes sold, so it is likely 2021 will set another record.

Local Home Sales Highest on Record

The frenzied pace of home sales has eased a bit, but many homes are still receiving multiple offers, especially if they are in good condition. As companies return to work Florida may not be the work from home darling it once was. However, it remains to be seen what effect the Delta variant will have on companies work from home policies going forward.

We are hearing cases in Florida have leveled off and cases up North may be increasing. If this continues, Florida may become the work from home darling location again.

This is good news for home buyers. Buyers will have more choices and less price increases to contend with. Rising interest rates are like a hidden price increase because it increases the cost of ownership. We would suggest buyers take advantage of any home they like because even if prices level off that home may cost them more in the future.

Sellers Beware

Sellers should beware. If the SW Florida real estate market is properly valued, rising rates will have a negative effect on buyers. For years we felt Florida real estate was undervalued. With recent price increases, Florida has come more in line with the rest of the country. Who is to say if we are properly valued or not? The point is, it feels like values may bounce around where they are now, but who knows. Rising rates will put pressure on buyers who need to finance.

This past year sellers have been blessed by cash buyers from up North. We will be tracking cash sales going forward as that will be an indicator of how much fuel there is for rising prices going forward.

Covid Declining in Florida

The good news for Florida is that Covid cases have begun declining. They are much too high right now, so we are glad to see a plateau. As the weather turns and Floridians go outside in the Fall, northerners will head inside more in the Fall and Winter. We may see a decline in cases in Florida and a rise in cases up North. If this scenario plays out, we could repeat this past year’s process all over again and Florida could become the darling.

As regular readers know, there are several wildcards we look for. I feel like this year we are tracking new wildcards. I don’t know of anybody who can say with any certainty what the future of real estate is for SW Florida. We will continue to report what we do know with facts. We make assumptions and educated guesses from these facts and we hope you appreciate our attempt to explain what we are seeing in the trenches.

Our guesses may turn out to be 100% correct, or 100% false, or somewhere in between. Perhaps we are looking at the wrong indicators.

Real Estate Questions?

If you have real estate questions, or would simply like to talk about your situation, call Sande or Brett Ellis 239-310-6500 You can also visit www.SWFLhomevalues.com to get your home’s online value. Not only is it fairly accurate, but it will also keep you updated as to your home’s price direction. In other words, even if you disagree with the computer’s price estimate, you will be able to track the direction of your home’s value monthly. Sellers really like this feature.

Brett or Sande can get you a more accurate price for your home when we meet.

Good luck and Happy Selling!

See last week’s article “Lee County Sales Prices Hit Pause in July“

We have been tracking inventory levels for years now and we have spotted an interesting trend. In the past week, local listing inventory grew 3.41% in Lee County Florida.

A few weeks ago we showed a graph we will repeat again this week. It showed inventory bottomed out in March at 1,510 homes and rose each month in April, May, and June. Since these official numbers were released, we decided to track daily numbers to see if the trend continues.

Local Listing Inventory Grew Last Week

On August 4^th, inventory stood at 1,379 homes. Keep in mind, these are not official numbers and there can be other listings from agents who are members in a different MLS. So, when you see these numbers and wonder why they are less than the 1,510 I mentioned was the bottom, you’ll know why. Using the same criteria, listings have risen to 1,426 by Aug 11^th. This is the 3.41% rise.

We still have a very hot market. What this is telling us is that some properties may have had 20 offers and now may only receive 5. New listings and back on market listings are outpacing the closings, hence the number is growing.

We have noticed some buyer fatigue at these prices. It could also be that many buyers were shut out of the process and were forced to rent. Rent prices have shot through the roof. When the eviction moratorium finally ends, rent prices may come back down. The end of the moratorium could lead to more listings as well. Some owners wish to sell at today’s prices but have not been able to get a non-paying tenant out.

As we mentioned earlier, we still have a strong market. So far, all the cards have been in the seller’s favor, and that may change. At some point we may enter a more balanced market. Listings are still too low, and it is a seller’s market. As more listings enter the market, it could shift to a more neutral market. When that happens, prices may not increase like they have.

In fact, we can almost predict prices will not increase like they have. Statistically, we cannot have prices rising 36% year over year forever. At some point buyers turn off and do something else. Lately, cash buyers forced financed buyers out of the game. When these markets shift, inevitably we see financed buyers start winning deals again.

Time to Sell?

We always tell sellers; it is more fun to sell when there is less competition. Right now, there is not enough competition, but we can see it growing slowly. If this trend continues, buyers will have more choices. This is not to say prices cannot keep climbing. They absolutely can. Will they, who knows? Whatever prices do, do not expect 36% increases going forward. Rising interest rates will also eat into buyers purchasing power.

Florida Is/Was the Place to Be

During the pandemic, Florida absolutely was the darling of work from home workers tired of lockdowns and high taxes in Northern states. Today, we still enjoy low taxes and no lockdowns, but our Covid numbers are high. How will that influence buyers going forward? When will our numbers settle down?

Employers have begun calling employees back to work or paying them less if they work from home. As the Delta variant spreads, employers have had to back off the return to workplace. When normalcy returns, will the return to workspace affect the work from home demand Florida has enjoyed? How would this affect sellers?

With rising inventory, buyer fatigue, and potential return to work situations, it might be time to think about selling a home you no longer love. Competition from other sellers is low and even though market is great, this might be a great time to capitalize.

The Ellis Team tracks the market daily, so our clients always receive up to the minute data that can affect decisions. If you are tracking a hurricane, you want the latest data to make best decisions. The same is true in the real estate market. The Ellis Team has the data. Call Sande or Brett Ellis 239-310-6500 or visit www.SWFLhomevalues.com to get a quick estimate of your home’s value.

See last week’s article “Have Real Estate Prices Leveled Off?”

If you look at the graph it would appear that real estate prices leveled off the past few months. Is that really the case?

Median and average prices are up 36% in June over 2020. That is a huge gain and expecting future gains like this is not sustainable. Let’s dive into 3 key price components to get an idea on where this market is headed.

Most of the price gains you see reported monthly have already occurred. For instance, May’s numbers were up 38.7% over last year. June’s numbers are a continuation of those gains that have occurred because they are year over year, not month over month.
It is not uncommon for prices to adjust backward month over month in June. Traditionally April and May are the biggest price months and prices slip back in summer. It is the seasonality of the market as to when higher priced homes sell in SW Florida. This graph doesn’t go far enough back to show this.
Listings are on the uptick even though we are still too low. Listing inventory peaked in February 2019 and has been on a steady decline since then. Typically, inventory does not pick up in April, May, and June, but it has this year. Is the increasing inventory enough to make a dent in this market? Not yet, it is still way too low.

So, what can we take from all of this? Prices can continue to gain going forward, but not at the 30% plus rate. Future price gains depend on listing inventory, interest rates, the economy, and northern states buyers continuing to see Florida as a better alternative to where they are now. We doubt real estate prices leveled off, but gains will be more moderate going forward.

Inventory is Rising

Listing inventory is rising. Home inventory does not usually rise this time of year, however Covid may have influenced timing is seller’s decisions. Many sellers were prevented from coming to Florida to get their home ready. Others did not want to sell while they occupied the home during a pandemic. It is possible Covid put off some sales decisions and altered the timing of when listings hit the market.

Inventory levels will be something we watch going forward. It is quite possible all the typical historical seasonality and trends will be off until the economy and real estate market rebalances itself.

Is Now the Time to Sell?

If you are a seller, now is a good time to sell. Inventory is rising but not to an extent that will hurt home sellers. We are still seeing multiple offers on properties. Buyers still outnumber sellers. Sellers hold the advantage right now, and it is always more fun to sell when you have the advantage. When buyers hold the advantage, they do not care about how much you want or need for the home.

Buyers today are not in competition with the seller. They are in competition with other buyers for the home they want. When the market turns, the seller will be in competition with other sellers. Right now, sellers have little competition.

After the Fall, season will be here before we know it. We do not know what the Covid landscape will look like, which states will be open, or if we will have Covid issues at all. Right now, we do, and the economy may tighten down again.

We are writing this article before the Fed releases comments from their July meeting. How the markets react to these comments and the future of interest rates could impact the stock and real estate markets.

If you have contemplated selling, call Brett or Sande Ellis 239-310-6500 and get the facts. Home prices are going up, but for how long? If you just want a quick home price for your home, go to www.SWFLhomevaules.com Our online value system will give you a good estimate of your home’s value, and it will email you every month the price changes. Even if you don’t agree with the actual estimate, you will be able to see which direction the market is moving for your home.

Don’t Settle for Appraised Value

Of course, Sande and Brett Ellis will be happy to visit your home and give you a more detailed value for your home if you would like. We can show you how our marketing is getting sellers more than the price estimates of their home and how we generate multiple buyers. Don’t just sell for appraised value when you can get more in this market. You need the right Realtor to do this. Brett and Sande have over 30+ years and over 5,000 transactions experience, so we know our stuff.

We look forward to helping you!

Good news for home buyers. SW Florida listing inventory rose 11.24% in the past month. Buyers cannot rejoice as listing inventory is still low. In fact, currently we have 1,336 listings in Lee County. Last year we had 3,044, and that number was low.

We track the number of listings as well as the 365-day rolling number of homes closed. Homes closed in the last year were up 2.14% versus last month. It may take a little while for closings to catch up to the new inventory coming to the market.

It is too soon to know if rising inventory will become a trend. We have a serious backlog of buyers, and it would take quite a few new homes on the market to meet that backlog. We are hearing from the Northern markets that inventory is building, and homes are taking longer to sell.

Florida May Buck National Trend

The resurgence of Covid could also affect the market. We are not sure how. We have seen interest rates fall in the past few days because of speculation Covid could slow down global markets.

If real estate markets slow down up North, could that trickle down to the Florida market? It could, but then again, Florida is attracting buyers from other markets. It is only natural that one day those markets will lose residents who sell and do not replace in their state. Many are replacing in their home and moving to Florida.

The U.S. economy generally affects the real estate market, but all bets are off now because the markets have not been behaving in a normal way with so many relocating to Florida. Reasons vary by buyer. Some choose Florida because it is a low tax state. Others choose Florida because it did not lockdown like other states. Still others appreciate the relaxed mask standards implemented last year.

Whatever the reasons, Florida seems to be an attractive place that may drive buyers here for years. Not all buyers can simply pack up and move. Sometimes it takes years of planning. Family could be involved as well as a business. Once a decision is made, it can take a while.

Has Market Peaked?

Many sellers ask us when will the market peak? We believe when June’s official numbers are released, we will see big numbers. The same holds true for July. Are there as many buyers bidding on each property? Maybe not, but each property we list attracts many buyers. Because inventory is still light, it will be interesting to see what happens next season.

The economy will not hold at this pace either. Economic numbers released today are compared to last year’s Covid economic numbers. So of course, they will be great. Economic numbers are expected to taper off as we get into the 1^st quarter of 2022.

We see a good housing market in Florida continuing for the next several years. We should not see rising prices like we have seen recently, but they should still rise. Inflation will bring about higher costs to build. Inflation could also eat into buyers spending money, so it is possible interest rates may stay low unless we see runaway inflation.

Nobody wants to see runaway inflation. Inflation is like a hidden tax. We will be watching inflation numbers through the 4^th quarter of 2021 to get a read on whether it is transitory or real.

Now May be Good Time to Sell

If you are a seller, now might be the time to have a conversation with us about how much we can sell your home for. While home prices may rise further, we believe we have seen the brunt of the increases. Call Brett or Sande Ellis 239-310-6500 or visit www.SWFLhomevaules.com to get a quick estimate of your home’s value.

Now might be a good time to capitalize on this market while prices are still going up and before additional inventory hits the market. It is always fun to sell to multiple buyers than waiting around for a buyer to make an offer.

Good luck and Happy Home Buying and Selling! Always call the Ellis Team at Keller Williams Realty!

The most common question we get from buyers is what should I offer on this home? The most common question we get from sellers is what price do you think I should list my home for? In May, 55% of Florida homes sold above asking price.

In some price ranges as many as 70% are selling above asking price in Florida. Even the luxury market saw as much as 40% selling over asking price in May. The numbers are rising. As you can tell by the graph, there is about a 20% gain in percentage of Florida homes sold above asking price. Those numbers are progressively growing each month. This means the market is still gaining momentum.

The numbers are telling buyers that if they want to score a home, they cannot mess around. This is not the market to negotiate or nickel and dime a seller. The sellers have the upper hand. Ignoring reality will be a big waste of time.

Top Agents Leave a Blueprint for Buyers

As a top listing agent, we see many offers on our listings. We give clear instructions on what the seller is looking for and the kinds of things we will be evaluating. When the offers come piling in, it is almost as if the buyer agents did not read any of the instructions. These instructions provide a blueprint for writing a competitive offer. Unfortunately for these buyers, they will probably miss out because their offer is not competitive.

An offer is judged by how well it is written. A buyer’s ability to close is judged not only by the financial terms, but the language in the contract. We have talked about how relationships matter in this market. They absolutely do, and so does the competency of the language in the contract.

If the offer is written sloppily, it is fair to assume that is how the whole transaction is going to go. If a buyer’s agent does not understand the contract, how are they going to counsel their buyer. A purchase agreement is like a test. It is a snapshot. The offer tells a story. If the story is sloppy, ambiguous, and does not add up, a top listing agent will sniff that out and the deal will likely go to a better offer.

Best Means Most Likely to Close Near Top End of Value

You have heard of the term Highest and Best. Highest means highest price, but best to me means most favorable terms and most likely to close. Best equals confidence. Am I as the listing agent confident this deal will close?

For instance, it does no good for an FHA buyer to offer above list price with minimal down just to win the bid. If the buyer cannot cover an appraisal deficiency, they are just trying to score the deal on price alone. The listing agent should know the price will get kicked back down to appraisal value, which is not always actual value.

Why not take the best offer upfront? Experience matters! Experience matters when you hire a listing agent, and it matters when you hire a buyer’s agent.

For a seller, taking the wrong offer can cost you tens of thousands of dollars. Many sellers sell their home 3-4 times because they take the wrong offer.

For a buyer, writing the wrong offer will cost you a sale. There are buyers out there that have lost out on 30+ offers, and you must wonder if they wrote a better offer if they might have scored one of those deals.

Strategy Session Important for Buyers

Our team has a buyer consultation with each buyer followed by a strategy session. We educate our buyers on how to score a home, and it is not just on price. We have our ducks in a row. Our offers make sense, and they often get accepted.

If you want a Top agent to sell your home, call Brett or Sande at 239-310-6500 or visit www.SWFLhomevalues.com to get an instant home value of your home.

If you are looking to buy in this market, call one of our buyer agents at 239-489-4042 or visit www.LeeCountyOnline.com.

Experience matters. Call the Best, expect the best!

See latest home price data “Southwest Florida Home Sales Prices Rise Whopping 38.7% in May“