Open House Archives - Page 3 of 14 - Fort Myers Real Estate and Homes For Sale

2024 Total pending sales equals last year’s numbers. In 2023 Lee County saw 2,254 total pending sales for single family homes, condos, and manufactured homes on March 21, 2023. We track numbers every Tuesday, so this year’s numbers came out March 19, 2024. The current year’s numbers show 2,234, which is pretty close to last year.

The difference though isn’t in the pending sales. It is in the active listings. In 2023 we had 5,458 total active listings across all residential property types for sale. In 2024 we have 10,745 which is almost double the listings.

Roughly, Lee County total pending sales equals 2023 numbers and double the listings. For this reason it is almost impossible for price to rise in this environment. While official numbers are not out yet as we write this article, we are tracking some interesting unofficial sales numbers in Lee County.

Compare today’s supply-demand vs August Housing Demand Gap.

Unofficial Numbers

Unofficially we can track 976 single family home sales in Lee County through our MLS. The median sales price in February 2024 was $430,000 and the average sales price was $586,665. In 2023 the official sales were 1,024 with a median sales price of $447,500 and an average sales price of $573,104.

We know the official numbers will contain a few extra sales from outside MLS’s that could change these numbers a bit. If our numbers were official, we would say the median sales price is down 3.91% from last year and the average sales price is up 2.37%.

These unofficial numbers are similar to what we have been tracking in recent months, so nothing is startling. The real question is, what will happen to home sales after season?

Last year home sales fell off after May. This is nothing new as they usually do. Last year’s drop-off seemed more severe than it was because prices were also dropping in 2023. The 2^nd half of 2023 just didn’t feel very good to home sellers and agents.

Interest rates were also on the rise in 2023. In 2024 interest rates seemed to have peaked, and the speculation isn’t around how much higher they may go versus when they will start dropping. This is a very different event than what we saw in 2023, so there is optimism.

Sellers have questions though as buyers may hold off in anticipation of rates going lower someday. When rates start dropping, will buyers jump, or will they wait for them to keep falling? As the Fed holds off on rate cuts, what will happen with the economy?

CMI

The Ellis Team Current Market Index has actually been improving since January 9^th. We do not publish the index to the public anymore as we reserve that for our clients, but we can say even though inventory is still rising, the index is improving. If we see this number improving through the month of April, we will feel better about the summer market.

Commission Lawsuit

We have seen several stories by the media about the recently proposed NAR Commission lawsuit settlement. Suffice it to say the media does not understand the terms nor the realities of what’s next. If you have questions about the proposal and are considering buying or selling in the coming months, reach out to us for details. 239-310-6500 The public will have questions, and it pays to get advice from those that know versus the media that does not.

Equity Analysis

Could you benefit from an equity analysis on your home? Not only will you learn the value of your home, you’ll also learn when it pays to refinance, buy investment property, and other uses for your money. Our equity analysis tool is insightful and keeps you updated each month on the changes in your equity. It even keeps track of how much you’re paying down your loan and PMI.

Equity Analysis Tool

Always Call the Ellis Team at Keller Williams Realty 239-310-6500. We have the tools to help you make good decisions.

Ellis Team Weekend Open Houses

Open House Saturday 12pm-4pm

Cinnamon Cove Open House — Open House Saturday 12-4 PM

11220 Caravel Cir #110 Fort Myers, FL

Open House Sunday 12pm-4pm

8515 Oakshade Cir #101

We thought you’d like to see the 2024 housing inventory supply numbers as we start off the new year. Everybody asks, are we in a buyer’s or seller’s market. This data gives us our answer.

Buyers Market?

A seller’s market is anything less than 5.5 months and a buyer’s market is anything over 5.5 months. Currently the Lee County single family 2024 housing inventory supply stands at 5.05 months supply, which keeps us in a seller’s market.

It might feel like a buyer’s market only because of the change we’ve seen in 2023. Back in October we reported a 4.19-month supply, and in July 2023 it was 3.81. In February 2023 it was 2.81. As you can see, the market moved steadily towards a balanced market in 2023 where neither the buyer nor seller had the upper hand.

A few points to remember. I pulled this data January 2^nd. Typically, I wait 10-15 days for all the end of the month sales to come in. By MLS rules they are supposed to be entered within a few days, but I allow for more time. Secondly, there were 282 expired single family home listings in Lee County from Dec 31-Jan 2^nd. Many of these homes will be relisted and added to the inventory totals, which will tilt closer to the balanced market or seller’s market should that occur.

Buyer Activity Increase

We have seen an uptick in showing activity the week after Christmas. This often happens, but it did not last year, for obvious reasons. The fact that mortgage rates have declined, and people are visiting SW Florida again, causes us to be optimistic. We expect interest rates to decline slightly in 2024 and more into 2025.

An uptick in pending sales may offset the expired listings that may re-enter the market in the coming days. Currently we are tracking about 902 closed sales in December compared to 955 in 2022. As we mentioned, all sales may not be entered yet. Either way, we are expecting a decline in year over year sales in December which was par for the course in 2023. We’ve been tracking 2018 closed sales levels closely since May, and in 2018 we closed 901 single family home sales. We feel pretty confident in these preliminary numbers.

December Sales Numbers

Preliminary sales numbers suggest a December median sales price of $400,000 which would be down from December 2022. All signs point to declining home sales and declining home prices for December 2023.

Just because home prices might be down in December doesn’t mean they will stay there. In 2023 interest rates were rising. Recently rates began declining, which could stabilize the market, or infuse fuel to the market in 2024. We do not expect large interest rate swings in 2024. What we do not know is how many sellers will decide to sell in 2024. We saw a steady rise in sellers in 2023, and we anticipate a rise in buyers in 2024. The answer to both ends of that equation will answer for us where this market goes.

In the coming month or so we will finalize where our market ended in 2023, and that is important to track. What it does not tell us is where the market will go in 2024. We believe this will become apparent in the next 8-10 weeks. As always, the Ellis Team will keep you updated.

Thinking of Selling?

If you’re thinking about selling, give us a call today. 239-310-6500. Brett and Sande Ellis would love to talk to you about the market, your neighborhood, and what options you have. The most common questions we get are what could we sell the house for now in its present condition and what could we get if we made some improvements? The other is when is the best time to sell? We can help answer those questions.

If you’re just curious about your home’s value, you can get an instant online value now at www.SWFLhomevalues.com.

Happy New Year! Always Call the Ellis Team at Keller Williams Realty with your real estate questions. 239-489-4042

See last week’s article “Property Best Buy List”

Ellis Team Weekend Open Houses

If you look at the chart you will see how interest rates influence home sales. Look at 1982 as an example. As interest rates began to fall, the number of home sales began to rise. Then again starting in 1996 we saw rates falling and home sales rising.

Fast forward to 2021. Rates bottomed out at 2.74% then started rising. Almost simultaneously home sales began falling. Sometimes there is a lag, but if you look at the chart many times it’s instantaneous.

Interest Rates Influence Home Sales in 2024

Nobody knows for certain where rates will be in 2024. As I write this article the 10-year yield stands at 4.471%. Three weeks ago, it was at 4.934%, so it has fallen about a half percent in the last 3 weeks. Some believe the Fed is about done hiking rates. Others believe the Fed may have one more rate hike in them.

Keep in mind, mortgage rates are not directly tied to what the Fed does. The market sets its own rates more closely tied to the 10-year yield. This is why we study it so much. What the Fed does can influence the 10-year yield, but the markets can also buck whatever the Fed does and do their own thing too.

Most people we talk to believe interest rates will start coming down some in 2024. Most agree it could eventually get down into the 6’s somewhere, sometime between later 2024 or mid-2025. The average interest rate from 1971 through 2023 is 7.74% If rates come down into the 6’s, we could see a lot more buyer activity, which begs the question. If I am a buyer, should I buy now, or wait? We’ve written several articles on this. We believe if you need a home, buying sooner before rates fall might help you beat out other buyers who have also been waiting for rates to drop. We know that interest rates influence home sales.

Should Homeowners Sell Now?

This depends on your needs. Some say prices nationwide could fall further as rates stay in the 7’s, but could level off once they hit 6’s. Our advice would be, if the home isn’t working for you now, consider selling now. This is especially true if you’re selling and buying as you’ll be buying before rates fall and buyers jump back in.

Election

Truthfully, nobody knows where the economy will be in a year, what inflation will be, and what the election will look like in 2024. I saw an analysis the other day that showed election years tend to be steady until the uncertainty of who takes over shakes out. If this is true, we could see a steady year in 2024 with peak interest rates beginning or thinking about falling. This could set us up for a decent 2025.

Home Sales

We expect there to be about 4 million national home sales in 2023, and about 3.7 million in 2024. Unemployment may rise, which was the Fed’s goal to bring down inflation.

Florida may outpace the rest of the country once rate direction becomes established. Living anywhere in the South half of Florida might be a good bet, if you can afford it. Rising insurance and taxes are pushing some out while a new crop of buyers replaces them.

Always Call the Local Experts

The Ellis Team studies the market as well as anybody. Our team can guide you through your decision. We listen before we offer advice. We’re not here to sell you anything. Our goal is to help you make the best decision for your family. We might challenge you with some facts so you have something to think about. We don’t follow the herd mentality, rather what is right for you.

You can call us at 239-489-4042 or visit www.LeeCountyOnline.com and search the MLS like a pro. Your data will never be sold to 3^rd party companies or other Realtors, so you won’t have 20 Realtors calling you by signing up. Your data is safe with us, and you will only hear from us. Now that’s a Thanksgiving deal worth celebrating!

Hope your turkey dinner was great. Let us know how we can help you!

Ellis Team Weekend Open House

Open House Saturday 12-3 PM

3199 River Grove Cir, Fort Myers, FL

Over 1 Acre Lot with fenced back yard, shed, 2+ car garage

Most buyers and sellers do not realize that Zillow busts agent marketing budgets. Let’s explain what Zillow is and what they do.

What is Zillow?

Zillow is an online portal that collects leads from buyers and sellers by displaying property information from the MLS. They made their mark by offering the Zestimate which was an online value generator for homes across America. Homeowners were intrigued by the Zestimate because it was a way for them to track their home value over time. It wasn’t always accurate, but that didn’t matter. It was exciting.

Later on Zillow got into the homebuying business and bought homes to flip. They later discarded this business because they admitted they were unable to accurately predict a home’s value, nor the future direction of a home’s value. So now they pretty much stick to selling leads to agents.

How Zillow Busts Agent Marketing Budgets

Zillow collects a fee on every transaction for agents in their Flex program. The fee in the Cape Coral/Fort Myers area is 40% on homes over $300,000. It is 35% between $225,000-$299,000. Most home sales in Lee County are above $300k. What this means is the agent or team pays 40% of the listing side commission to Zillow first. Then, they must split with their broker. If there is money left over, they may have money to pay employees, rent, signs, phone, internet, gas, car, etc. Then there is advertising. If an agent is paying 40% off the top to Zillow, and another 10-50% to their broker, this isn’t much money left for advertising a home, or for buyers.

Dependent

Agents become dependent on Zillow for everything. They receive buyer and seller leads, and they have little to no money left over to acquire leads or advertise in other places. Zillow has another program called Zillow Premier which allows agents to pay a monthly fee. I know some agents paying $20,000/Mo for this program. They avoid the high referral fee on each transaction, but again the money is sucked up by the monthly spend. The agents become dependent on Zillow for leads because so much of their budget is tied to one source. To be fair, there are other agents paying $5,000/Mo or less, but they get even fewer leads that way.

In the Way

All Zillow does is get between the agent and the transaction. Zillow is not alone, there are other online portals like Homes.com, Realtor.com. etc. Each of these charges leads back to agents in some form or fashion. What if that money went to advertising a home instead of online portals like Zillow?

Who is to Blame?

Zillow is in business to make a profit. Some agents like the easy button where they acquire leads to work on for a price. Some agents don’t have or maintain a client database. They are transactional agents. They love working the deal, but then that’s it. Relational agents like to keep in touch or hold client events. It’s more of an ongoing relationship versus a one and done transaction. Consumers do not know the business and they like some of the features of Zillow. They don’t realize many of those features are available in other places. Other sites may have even better features, but Zillow spends so much advertising themselves that consumers find their way there. Zillow bids up the keywords and consumers click on the first link they see in some cases. So, nobody is to blame, and yet look at who benefits.

We Do Not Advertise on Zillow

The Ellis Team quit advertising on Zillow years ago. Our website has some better features www.LeeCountyOnline.com and www.SWFLhomevalues.com and we prefer to spend our advertising dollars on our clients and our clients homes. I am sure there are some very successful agents who still advertise on Zillow. We choose not to. Zillow’s success makes no difference to us as we do not use them. We do not blame other agents who do. We just want consumers to realize where their commission dollars are going and decide for themselves whish way is best for them to buy or sell.

Always Call the Ellis Team at Keller Williams Realty 239-489-4042 We’d love to talk to you about how we advertise your home and get Top Dollar. We’ve been voted the Best in Real Estate for 11 straight years by News Press readers.

Ellis Team Weekend Open Houses

Open House Saturday 12-3 PM

8515 Oakshade Cir #101 Fort Myers, FL $330,000

2 Bedroom 2 Bath in South Fort Myers — Open House Saturday 12-3 PM

Open House Sunday 12-3 PM

1417 NE 34th St Cape Coral, FL $330,000

3 Bedroom 2 Bath cape Coral Home — Open House Sunday 12-3 PM

I want to talk about the difference between salespeople versus order takers. Most are surprised to know that 87% of Realtors fail and leave the business within 5 years. This means that only 13% have been around since 2018.

We often see real estate agents leave the business when the market shifts. 2023 is no exception, and with real estate closings down significantly year to date, we expect more to leave the business when board fees become due at the end of year.

Skills Based Market

The 2023 Southwest Florida real estate market is a skills-based market. Only the best salespeople will survive because there are less transactions to go around. A few years ago, anyone could sell a home because the market drove sales. In many cases, you just had to show up with a blank contract in hand and write it. Buyers and sellers didn’t seek out the best agents because in their mind it didn’t make a difference. They just wanted someone there now! I would argue that did cost some of them, but that’s another story.

Sellers Need Salespeople Versus Order Takers Now

Today, things are different. Homes do not sell in a day, and certainly not with 50 offers each. It takes marketing and salesmanship to get the job done. Agents need to learn to probe deeper and find out what’s going on. When a buyer says no, there might be more to the story. Overcoming an underlying issue that has nothing to do with what the buyer said may make the difference.

Often the buyer’s first objection is not the real objection. Too many times we see agents solving for the objection they heard versus probing for the true objection. When agents spend time and energy solving an objection that isn’t even real, they’ve wasted an opportunity.

Imagine you were playing a game of Find and Seek. If you took the clues down the road on the right and spent all your time there, you’d be disappointed to find out the object was on the road to the left. You would have wasted all your time looking for something that was never there.

Isolate Objections

Buyers don’t intentionally lie. They throw out objections to slow the process down, because they are afraid, or they have not thought enough about what they truly want. A skilled agent learns to isolate the objection. By isolating the objection, you can determine if you chose the right road, or if you need to ask more questions. No sense spending time on the wrong road. It’s hard enough to find solutions on the right road, let alone choosing the wrong road.

This is why sellers today need salespeople versus order takers more than ever. When the going gets tough, 87% get out of the business. When you hire an agent, you want to know three things.

Your agent will be there until your house sells, not quit the business.
The agent you choose has been through a shifting market like this before and survived.
Your agent has a plan to sell your home and overcome objections.

Experienced agents who thrived in up, down, and sideways markets give you your best chance because they have a track record. You have something to grade them by. When you hire a less experienced agent, you hire them because you like them. Liking an agent is very different than hiring the best agent. This is your home, your money, your life, and your success.

Always Call the Ellis Team

Sande and Brett Ellis have worked in the greatest Boom SW Florida may ever see, and the greatest Bust we may ever see, along with every shift in between. Today’s shift is easy peasy for us, because we’ve been here before and we thrive in a shift. We have the skills you need to sell! People skills never go out of style, and they are needed today. Call us at 239-310-6500.

If you’re an agent who is struggling, give us a call. We have sales positions available and leads. Our coaching and leads might just help you stay in this business and save your career.

Good luck, and Happy Selling!

Ellis Team Weekend Open House

8515 Oakshade Cir Unit 101 Fort Myers, Fl 33919

Open House Sunday 12-3 PM $330,000

The Ellis Team at Keller Williams is introducing an online real estate auction bidding system on select listings. We are using technology to speed up the process of selling homes. This system is different than our 8-day sales program which we also offer. Both programs are designed to attract top dollar while creating buyer urgency. Most sellers do not want to show their home for months on end, so we have solutions to solve that.

Online Real Estate Auction With Online Bidding

We place the home, condo, lot, or whatever real property we are selling in both the MLS and the online bidding site. Buyers are advised that this is an online bidding system. The seller is not obligated to take an offer, although most do. The online bidding might start at a lower price than the actual price in MLS. We typically like to have appointment windows where buyers can view the property before making bids.

The seller can decide if they will accept financing or cash only bids. Buyers can enter their bid and can even enter an amount they would go up to with an auto-bid. Other buyers do not see what your auto bid number is. If the other bids exceed your up to auto bid number, you will receive an email that you are no longer the top bidder. A buyer can then decide if they wish to change their bid to get back in the game.

Transparency

Buyers love the online system because they can see the number they have to beat if they want the property. In the multiple offer days buyers were most frustrated by wondering how much over asking price they must go to get the property. Nobody wants to overpay, and some buyers wondered if they actually did, and by how much. With this system, the buyer is in control. The buyer is not competing against the seller. The buyer is competing against other buyers, and there is transparency. Each buyer can see what it will take to score the property.

Sample Bidding History

We’ve included a screenshot of a recent auction by another agent held up North in another state. Each buyer can clearly see the auction history. This was page 3 of the auction history. This particular auction had 53 offers or amended offers.

This Weekend’s Online Auction

This weekend the Ellis Team is hosting an online auction on 8268 Firwood Dr in Estero. The online starting bid will be $80,000. The Ellis Team online real estate auction can be found at www.EllisTeamAuctions.com More info on the property can be found at www.LeeCountyOnline.com in the Featured Listings tab. We will be hosting an open house preview on Saturday and Sunday from 12-2 PM for interested bidders. Bidding ends Sunday at 6 PM

Terms

Each property can have its own terms. For instance, one seller might include a home inspection upfront and offer no inspection period while another may provide an inspection period. Other terms might include how soon a buyer must close, what the escrow deposit needs to be, etc. The winning bidder earns the right to go to contract with the seller if the seller accepts the bid.

Written Offers During Auction

Sometimes buyers decide to submit written offers directly to us as listing agents during the auction period. We redirect them to the online bidding site so that all buyers are playing fairly.

Interested in Selling?

This has been a brief overview of the program. If you are interested in selling your property, we have several programs that you may love. You can speak with Sande Ellis or Brett Ellis at 239-310-6500 and we’ll be happy to help you sell your home for Top Dollar and quickly. The Ellis Team has more tools to put more money in your pocket. Always Call the Ellis Team at Keller Williams Realty.

Ellis Team Weekend Open House With Online Auction

8628 Firwood Dr, Estero FL

Bidding Starts at $80,000 Bid Online

Online Bidding Ends Sunday 6 PM ET

Today we’re focusing on Lee County duplex search results. We’ve been getting a lot of inquiries from buyers looking to buy a duplex and live in one side and rent out the other. This makes a lot of sense right now with rising rates. Why not let a tenant help you pay for the mortgage, and help qualify for the mortgage?

Last week’s article “Cape Coral Gulf Access Homes for $500,000 or less” was so popular we decided to keep it going. Many of you reached out or registered on the website to search for homes, obtain neighborhood market reports, or get your current home’s value. We are glad you loved the information.

Lee County Duplex Search Results

Currently 139 duplexes are on the market. They range in price from $149,900 all the way up to $3.995 million. Of course, I had to check out the $3.995 million duplex. It is located on Captiva right on the beach. It is gorgeous. I could see myself living there. Are there any tenants out there that would like to rent one side so I could live my dream and you help me pay for it?

Seriously, buying a duplex can be a smart decision for some, and many are looking into it. You must be careful though and make sure both sides are included. I’m looking through some of the listings and it appears some are listed with only one side included. While the building may be a duplex, the ownership might not be.

To see this search for yourself, go to www.LeeCountyOnline.com and look for Fun Searches on the right side of page. We just added Lee County Duplex search this week. Keep in mind, you can search Collier County, Charlotte County, and many other areas in Florida. This website is powerful and has access to more than just Lee County listings.

Saved Searches

You can also create and save your own searches. Perhaps you have no interest in duplexes or waterfront homes. Maybe golf is your thing. You can create your own search, and our system will find it if it’s out there. Additionally, it will email you when new properties enter the market that match your criteria, so you’ll be the first to know. Just search away. Be sure to save your search if you see properties you like. Or favorite a property to keep track of it. Buyers like to know if a favorite property goes pending, when it sells, or if it has a price reduction. This technology will do all of that.

You can have an unlimited number of saved searches. For instance, I could set up a saved search for duplexes in one area of town and single-family homes in another. Perhaps I want to buy a larger home for me in one price range and a smaller condo for my parents, or children. There is no limit to the various searches you can set up.

We have access to every field in the MLS, so if you want to drill down even further, we can help you with that. Just give us a call.

Market Report

Perhaps you live in a current neighborhood or have an interest in one. You might be interested in our market report page. www. https://www.leecountyonline.com/sw-florida-market-reports/ This page has access to sold listings and photos. No other website we know of has all this.

Home Value Report

How would you like to know your home’s current value? Our website will tell you. The best part is it will email you your updated value every month.

Simply go to www.SWFLHomevalues.com and put in your address. It’s fast, free, and fun to watch over time.

Of course, We’re here to talk to. All this technology is great, but we love helping and talking to people, so give Sande or Brett Ellis a call at 239-310-6500. Good luck, and happy shopping!

Changes in the SW Florida Real Estate Market

Ellis Team Weekend Open House

Open House Saturday 12-3 PM

17681 Acacia Dr

Lee County median sales prices declined $10,500 in March 2023 from February. This is significant because median home prices generally increase throughout the season. We have been reporting for months that home prices dropped in 2022 but nobody realized it because most people focus on year over year numbers.

Year-over-year median prices were up 1.9% in March. The median sales price this year stands at $437,000. Last march it was $429,000. In February of this year the median price was $447,500. Looking forward, the official number for April 2022 was $470,000. If the median sales price doesn’t climb to $470,000, we’ll be reporting the first year-over-year loss in a while. About 6 months ago we predicted we would see this drop with the April or May numbers.

Preliminary April Numbers

One thing that could change Lee County median sales prices that is if April sales numbers come in higher. Preliminary numbers reported through April 25^th when this article was written suggest numbers of $445,000. This number will be off because there are some closings that haven’t been reported yet, and some closings that haven’t taken place yet.

The end of the month always includes several sales. If the $445,000 number holds up. It would be a 5.32% drop.

Why Studying the Market Matters

We study the market to give our clients an advantage. For instance, years ago when we saw our Current Market Index turn negative, we got all our sellers out before the big price decreases. It’s never fun to be caught chasing the market down. When the market is moving upward, it is important for buyers to get in there quickly and beat out other buyers to hot new listings. Waiting literally costs the buyers money.

Predictions

We are not making predictions about the market here. We’ll save that for our clients. We are simply reporting what we are seeing. The predictions about when we would see negative numbers weren’t really a prediction about the market. That was more of a mathematical equation that was going to reveal itself in the future, and the future is almost here.

We believe home sellers are going to be just fine moving forward. Sellers must price their home correctly and market it correctly and success will follow. Today’s Current Market Index is stable, so we don’t see large price fluctuations anytime soon, unless market conditions change.

We do have the possibility of lower interest rates on the horizon as the economy slows down. Lower rates help borrowers afford more, which could lead to higher prices in the future. A declining economy may weigh against that as more buyers lose their jobs.

X-Factor

The X factor will be how many people continue to relocate to Florida who do not need a job to purchase or have a job that will allow them to relocate. Those remote jobs are drying up as more employers require their workers to show up in person, but there are still some out there.

The true answer is nobody knows what the future of real estate prices will be in SW Florida. We are watching all the indicators driving values and on balance they appear to be neutral. If you have a property you’re considering selling, call Brett or Sande Ellis at 239-310-6500. We will be happy to guide you through your home’s value and what improvements if any would be most beneficial for your sale.

You can always visit www.SWFLhomevalues.com to get a Free Instant home value of your home. We think it’s kind of cool to track that value over time, which the system will do for you.

If you have your eye on a property but are not quite sure how to pull it off because you have a property you would need to sell, we should talk. We are experts at making things happen, and we have some creative financing options you might not know about that can help.

Good luck and Happy House Hunting!

Free Shred Event Saturday April 29th 10 AM- 12-PM

Link to Register

5846 Wild Fig Ln

3 Bed 2 Bath $350,000

Aggressive marketing and proper pricing is key in a shifting market, and SW Florida has been in a shifting market since May 2022.

For instance, last January the median percent of original list price received was 100%. In January 2023 that slipped to 95.5% In other words, sellers are accepting less than full price, or being forced to reduce their price before accepting a full-price offer, on average. There are still some full price and above offers going on, but they are occurring much less frequently than last years fast paced market.

We’ve been saying for months year over year pricing will come down starting in about April if nothing changes. Official numbers were just released and the median price versus last year was up 1.6%. The average price was up 1.3%. This tells us the market is flat year over year.

You have to dig deeper to realize that last year’s price runups occurred up until April and May. Prices have since slipped backwards since then, but nobody realizes it because they are focusing on year over year numbers. We like to look at month over month then account for seasonality.

Interesting Numbers

Months supply of inventory is up 220% from last year. Active listings are up 150.7%, and pending inventory is down 28.7% Closed sales are down 21% from last January.

In order to sell today, sellers must know exactly what is going on and price accordingly. Sellers also must list with an agent that is aggressive in marketing as buyers have more choices to choose from than last year. Your home must stand out, and marketing is one way to do that.

Thankfully clients of the Ellis Team at Keller Williams are well informed on the market, and we utilize cutting edge marketing, making our homes stand out. We are also using a new patented system to help our sellers sell faster and for more money than the MLS.

New Tracking Technology

Soon we will be releasing new technology that will track your home’s value over time. If you’d like to get an idea of your home’s online value today, simply go to www.SWFLhomevalues.com and type in your address. The system will email you your home value report. This site is one of the best sites we know of to track your home price. However, we won’t stop there. If you like, we’ll track additional sources and update you over time. Stay tuned for exciting information on this, but you can get started now.

Better Way to Sell than Traditional

If you’re thinking of selling in the next 1-2 years, you can call Sande or Brett Ellis at 239-310-6500. We can show you our patented system that gets our sellers homes sold faster and for more money. 6,440 home sellers that used this program over 2.5 years averaged 8.4%-12% higher prices than their local MLS median price. It can cost you to hire the wrong Realtor!

In a shifting market, knowledge and experience matters more than ever. Brett and Sande Ellis have been through several shifts, so we know that aggressive marketing and proper pricing is key netting you the most money and getting your home sold before all the price reductions.

We look forward to answering your questions. We are not pushy, but we get results. Always call the Ellis Team at Keller Williams with your real estate questions. 239-310-6500

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Inflation may help home buyers in the long run. Here is why. Currently home buyers can borrow right now at less than the cost of inflation.

Typically, the Fed wishes to raise interest rates higher than the cost of inflation to help lower inflation. Right now, a borrower can get a 30-year loan in the low 5% range. Inflation has been raging at over 9%. That’s almost a 4 percent spread between the cost of borrowing and inflation.

Inflation May Help Home Buyers

Secondly, we know that real estate appreciates long term at higher than the cost of inflation. See our article back in May titled “Housing Best Hedge Against Inflation in Uncertain Times”

If housing appreciates faster than inflation, and you can borrow currently at less than the cost of inflation, it makes sense to buy what you can today. This is a great long-term strategy. Unfortunately, most people worry about the short-term. Rising inflation hurts the economy and purchasing power, and this leads to pain in the short-term. The Fed’s mission is to quell demand, and that is true for all spending.

Housing can be hurt in the short-term and this can put negative pricing pressure on homes. Home prices could come down some, but keep in mind we have a shortage of homes being built, and that is getting worse because builders are slowing down building in the middle of a recession. Long-term it will be very hard to keep housing prices down because the demand will be there when interest rate pressure eases.

Risky Strategy

Some buyers will try to time the market for when home prices fall. The problem with this strategy is if home prices do fall some, interest rates could also rise, which will negate all benefits of waiting. Higher borrowing costs can outweigh any potential price savings. Because borrowing rates are far below inflation, now is a good time to jump on that rate.

We are still seeing many buyers moving to Florida. We are also seeing some buyers moving out of Florida as their employers call them back into work. Remote work has been good for Florida real estate, but that party is ending for some companies.

What will be fascinating to watch will be how many companies decide to relocate to Florida in the coming years. On a regular basis we hear of more and more companies making the move to Florida. While companies may call workers back to the office, more of those offices could be in Florida in the future.

Inflation is hard on everyone. To tamp it down, the Fed is forced to do some awful things. Sadly. Doing nothing is worse than cracking down on inflation, so something must be done. We believe lowering the M2 money supply would do far better than simply raising rates, but this is where we are.

The labor market is showing signs of weakness going forward. Once this occurs, the other obstacle will be the price of oil. Many believe oil could rebound to $150/barrel. This will not help inflation if this occurs.

Inflation adds to the cost of everything, so one day when construction does pick up again, presumably it will be at higher prices due to higher costs. Some commodities like lumber are decreasing, but petroleum goes into so many things like clothing, roofing, roads, etc. The next 30-90 days will be pivotal for oil prices, so keep an eye on that.

Smart Money on Real Estate

The bottom line is, with all the uncertainty out there, real estate may not be a bad bet. Sure, home prices could rise or fall. In the long-term, those that own real estate are far better off than those who don’t. Currently you can leverage today’s rates to increase long-term value.

People always talk about borrowing costs in relation to today’s purchasing power. It might be time to think about long-term purchasing power and how to accomplish that. This moment in time might be that window.

Search the MLS like a Realtor at www.LeeCountyOnline.com Check your home’s property value at www.SWFLhomevalues.com or call Brett or Sande at 239-310-6500

Good luck and Happy Selling!

Ellis Team Weekend Open Houses

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206 SE 1st Pl Cape Coral Florida

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12157 Lucca St Unit 201 Fort Myers Florida

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