Median Percent of Original List Price Received

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One of the metrics we track is the median percent of original list price received. In March of 2025 that number was 94.2%. Last year in March it was 95.3%.

Median Percent of Original List Price Received

This tells us that for all homes sold in March of 2025, sellers received 94.2% of the original list price. This does not mean sellers took off an average of 5.8% of the current list price. If the home was priced correctly, it might sell at the original list price minus 3%. Or, if it is like the average home in Lee County, there might be another 2.8% in the cards.

Median Percent of Original List Price Metric

This metric emphasizes the importance of pricing a home correctly in the beginning of the listing. Not only will it sell faster, but it will also sell for more. We see many homes in the MLS that have had multiple price reductions. While this is good, it would have been better if the seller had started out more realistically. To be fair, in a shifting market, it isn’t always easy identifying where a home should be priced. The market leaves clues though.

This also tells us that many homes sell much more than 94.2%, because so many homes sell lower after multiple price reductions. This is even more evidence for why setting the best price up front nets sellers more money at closing table.

When Do Homes Sell?

The data tells us the vast majority of homes sell right away when priced correctly, or within 10 days of a price reduction. 10.78% of all single-family homes reduced their price in the last week. We typically see between 10-13% reduce each week. The average price reduction was 3.6% this past week, and that is also fairly typical.

Once a seller reaches market value, the home will sell. If your home is on the market for more than 10 days and not selling, it’s probably time to look at the price. Staying at a price for extended periods of time does not benefit the seller.

The median prices of homes sold in March 2025 sold for 5.5% less than last year. In a declining market, sheltering in place at the same price hurts you, unless you really don’t want to sell. Some sellers need to sell to move on with their next opportunity, and some do not. This isn’t the market to test the market. There are 9,997 single family homes on the market in Lee County and 5,312 condos and townhomes on the market.

The Market is Speaking

If you are testing the market, you’re clogging up the market for sellers who do wish to sell. Your home is not going to sell for more than it’s worth in today’s market. The good news is listing inventory dropped by 53 homes in the past week, and we have seen a surge in home buyer activity and offers. The gap between available homes and pending sales decreased by 45 this past week. Pending sales dropped by 8, but we are at the end of the month and many of the pending sales have closed.

The other good news is the market tells you right away if you’ve passed the test. If your home is marketed well and priced where the buyers will accept it, it will sell. If it is not, you have some work to do. In either event, when you do act, the market will reward you with a sale. It might not be at the original price you wanted, but that’s why we call it a market. Buyers never buy for as little as they want, and sellers never get as much at they want. Sellers set the price, and the market determines the value. If you can set your price close to where the market is, your home should sell.

Instant Value

Our website gives you an instant estimate of your home’s value. www.SWFLhomevalues.com Or you can call Brett or Sande Ellis at 239-310-6500 and we’ll evaluate your home and offer guidance. We can also discuss marketing that will help you get Top Dollar for your home.

Good luck, and Happy Selling!

Home Prices in Lee COunty Florida

Southwest Florida Housing Supply Increases Since November

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Single family Southwest Florida housing supply increased from 5.9 month’s supply last November to 8.36 months presently. We’ll identify which price ranges are the hottest and which are the coolest in this article and provide some insights.

Southwest Florida Housing Supply Increases Since November

The price range of less than $300k price range saw the greatest increase in listing inventory, up 89% in 5 months. The next price range was $600-800 k with a 64.79% increase in listings followed by the $ 1 Million + range with a 61.85% increase. These increases affected the month’s supply in each of these categories.

Southwest Florida Housing Supply Increase

The price range that saw the most increase in the month’s supply was the $1 Million + range. It gained 6.43 months supply in just 5 months. In November Lee County had 9.74 months’ supply in this price range. That shot up to 16.17 months presently. If you have a $1 Million + priced home, it has to be marketed well and provide value. Buyers have an excellent choice to choose from, and they will only select the best value to them.

If buyers cannot find a suitable home they like, many are waiting on the sidelines, because they are not worried that prices will rise anytime soon. Buyers perceive it in their best interest to wait because they know prices are falling. There is too much competition amongst sellers and inventory is rising. A buyer will act when a home meets their needs, and they perceive the value of the home they like far and exceeds that of other homes they’ve looked at. You’ve heard the saying, “If you’re not first, you’re last.” This is true when there is an abundance of homes on the market in a particular price range.

Pricing and Marketing Critical

Anything $500k and up has about a 10-month supply or more of homes on the market currently.  Pricing and marketing are critical to sell in this market. Working with a Realtor who can listen to the buyers’ wants and fears is also critical to overcoming buyer reluctance in uncertain times. Offering suggestions and alternative ways of thinking about the buyer’s situation is crucial to making a sale today.

While pending sales are down compared to 2024, we had hopes of an improving market when interest rates declined. There was an uptick in pending sales a few weeks back when rates dropped, but suddenly rates shot up again about ¾% overnight as trade wars escalated. Global uncertainty has caused some to pause, which is not good because we already had a backlog of inventory going into season.

Trade Wars

This could all work itself out, but we better get some good news fast. It takes time to work through inventory backlogs, and capital is frozen until supply chain decisions are made. Money is available for lending on homes, but money doesn’t know where to find safety in the economy. The longer this persists, the more repercussions we will see. The good news is, if trade agreements are announced soon, this could all reverse itself quickly and we could begin working down the inventory along with lower rates.

We are frozen in time, and nobody knows for how long. We are still selling homes, but solving uncertainly in the economy makes everyone feel better about making big purchases.

If you have a home to sell, Always Call the Ellis Team at Keller Williams Realty 239-310-6500. Put our marketing and expertise to work for you. Or, find out the approximate value for your home instantly at www.swflhomevalues.com Our system will update you the change in value every month, so you’ll know which way the market is headed consistently on your home.

We’re here to help. Good luck, and Happy Selling!

Real Estate Turf Wars Breaking Out Everywhere

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If you haven’t been paying attention to the news, major real estate turf wars are breaking out across the industry. There are huge implications for buyers and sellers.

Real Estate Turf Wars

At least one brokerage has announced their intent to market their listings to their private network first. This is before placing them out to portals like Homes.com. Realtor.com, Zillow, and Redfin. The brokerage argues that they can sell the home at a higher price or faster than placing it for the public to see. Several studies suggest otherwise. We’ve also seen a few studies that suggest if done properly this could be true in some cases.

Real Estate Turf Wars

The brokerage intends to use this as a selling proposition, and they have been accused of attempting to profit for their own gain versus what is best for their clients. After a period of time, if the property does not sell, they reserve the right to place it on the portals and market publicly.

Portal Response

Zillow and Redfin have responded that if a listing isn’t listed for public display on their portal from Day 1 of the listing, that listing will be banned from display on the portal for the lifetime of the listing. This means that many listings will not be displayed on Zillow or Redfin. Homes.com has said they will display the listings, and we have not heard yet from Realtor.com

This is a double power play. One by the brokerage that wants to market on their own first and second by the portals who want to punish the brokerage and the seller by never displaying that listing when it fails to sell privately.

What’s at Stake?

Portals like Zillow and Realtor.com advertise homes in the MLS. When  buyer clicks on a listing they sell the lead to agents who do not have the home listed and know nothing about the home. If a portal loses home inventory, they lose the chance to sell the lead to agents. By playing hard ball, they are trying to convince the brokerage it’s a bad idea to mess with them. The brokerage and your seller will get hurt. If their seller gets hurt, they may want a different real estate agent to market their home because their home will be shutout on some of the portals.

Homes.com

Homes.com doesn’t sell the lead. When a buyer clicks on a property, the inquiry goes directly to the listing agent. You know, the agent with actual knowledge of the home and the motivation to sell that home. I read about a survey from buyers that had no idea they were being directed to agents other than the listing agent on Zillow, Redfin and Realtor.com, and they weren’t happy about it. Additionally, sellers are surprised to learn that Zillow diverts potential home buyers away from the listing agent and over to other agents paying for leads.

One brokerage CEO wrote in an email “Zillow is not designed to sell your listings, it is designed to use your listings to generate buyer leads for it’s pay-to-play agents.”

Brokerage Real Estate Turf Wars

Brokerages will have to decide if they are going to utilize the public marketing from day 1 or attempt private marketing. The brokerage wanting to use this is attempting to gain market share. Will it work? Will they lose market share in the process? What will sellers decide?

Will the portals gamble pay off, or will they forever lose listings never to be seen on their portal? Kind of defeats the purpose of attracting buyers to their website. This is all one high stake game, and buyers and sellers stand to lose.

There is a way to get your home listed on all the major portals without being banned. We can also get your listing to the Top of the one that assigns leads to the listing agent. If you have more questions about this, give Brett Ellis or Sande Ellis with Keller Williams Realty a call 239-310-6500

We can answer your questions, and together we’ll help you win while these other companies fight it out online.

Good luck, and Happy Selling!

See Also Zillow Vs Realtor.com Vs Homes.com

10 Reasons Sellers Become Frustrated With Their Listing Agent

Join us April 17th for our Home Selling Seminar

Home Selling Seminar

Home Buyer Activity Increases as Interest Rates Decline

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US home buyer activity increases as interest rates decline. Mortgage applications are up in the purchase market, which is a signal that homebuyers are ready to react as affordability increases.

SW Florida Home Buyer Activity Increases

Locally single-family home pending sales increase by 49 units for the week, up to 2,076 from 2,027 the week prior. This is either a result of lower interest rates or the fact that Easter is late this year, which may prolong the season. In any event, it is a welcome sign amongst home sellers. Currently we have a 8.33-month supply of homes on the market in Lee County. Our team has identified the best and worst areas of Lee County housing supply we’ll share in a future article. Some of those numbers may surprise you.

SW Florida Home Buyer Activity Increases

Forecast Track

So far 2025 has gone pretty much as expected. Experts predicted 2025 will be much the same as 2024 with little change. What’s changed are the odds for Federal Reserve rate cuts and tariffs. The bond market has already started bidding rates lower, so the Federal Reserve may be late to the party and more reactionary. That’s not new news. The wildcard is tariffs and the economy. Will the US enter a recession? How quickly will the tariff situation work itself out?

While the US may win in the long run, what will the dust up do to consumer sentiment? Most experts believe leveling the playing field was a necessary step. Nobody has done it yet, presumably because doing so is messy. Short term pain is worth long-term benefits, unless you’re the one relying on retirement benefits to pay for the here and now.

Next Steps

If this whole thing gets worked out in the next month or two, we’ll be OK. The next few weeks are critical. Absent everything working out, incremental wins will suffice. If countries start signing deals with the US, companies can make decisions about where to relocate manufacturing. Some will come back to the US, and that has already started. Others may go to countries that sign favorable deals with us soon. Watch for India and other countries make a play for China manufacturing.This will put China in a box. China has the most to lose, so look for them to pull out a few tricks of their own. They could withhold rare earth minerals, pharmaceuticals, etc. Once the dust settles, China stands to lose influence around the world, so they won’t take that lightly.

Iran

Iran is also a wildcard. Their nuclear program is nearing the danger phase. A nuclear Iran would bring instability around the middle east, and countries like Saudi Arabia and Israel won’t stand for it. Look for this to heat up in the next month, and Lord knows how this could affect everything. So when people ask, what’s the market going to do this year, it’s complicated.

For now, we work on what we can control. Affordability is increasing for buyers, and we believe they should take advantage of that. Buyers have an excellent selection to choose from, and negotiating leverage with sellers is good.

If you’d like to find out what your home is worth, go to www.SWFLhomevalues.com for an instant quote. If you’d like to shop for a home anywhere in SW Florida, check out www.LeeCountyOnline.com

For questions, Always Call the Ellis Team at Keller Williams Realty 239-489-4042. We’re here to help, no matter where the economy takes us, or who’s acting up! We’re all in this together!

Uncertain Times

SW Florida Real Estate Update

Nobody Wants to Buy Real Estate in SW Florida Right Now

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

Nobody Wants to Buy Real Estate in SW Florida Right Now

Nobody Wants to Buy Real Estate -Actual Numbers

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

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

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

Marketing

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

Reach

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

Portals

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

Ask Your Agent

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

Two Reasons Why Homes Don’t Sell

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

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

Good luck, and Happy Selling!

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

Featured Home of the Week

5839 SW 1st Ct Cape Coral

March Real Estate Update

Expired Listings April 1, 2025

SWFL Real Estate Buying Signals Flashing

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

SWFL Real Estate Buying Signals Flashing
SWFL Real Estate Buying Signals Flashing Green

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

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

Inventory Levels

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

CMI Index

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

Interest Rates

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

Insurance Rates Drop

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

The Gap

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

Tariffs

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

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

Have We Hit Bottom?

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

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

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

Good luck, and Happy Selling!

The Future of Real Estate Market Update March 2025

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

Fort Myers Beach in March

Expired Listings April 1st

Top 10 Reasons Sellers Become Frustrated with Their Listing Agent

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

Top 10 Reasons Sellers Become Frustrated with Their Listing Agent

Performance

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

Communication

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

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

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

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

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

Decades of Experience

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

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

Culture

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

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

Teams

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

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

Good luck, and Happy Selling!

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

Latest Sales Numbers

Zillow Vs Realtor.com Vs Homes.com Analysis

March Housing Supply Increases in Lee County

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March housing supply increases again this month in Lee County. Ellis Team numbers indicate single family home listings at 9,300, up from 9,208 the previous week. For reference, that same number was 6,694 last year. That is a 39% rise in listing inventory since last year.

March Housing Supply Increases in Lee County

Official figures from Florida Realtors have been running higher, presumably because they use out-of-area Realtors who list property in Lee County but not in our MLS. We won’t get official numbers for March until the 3rd week of April.

2-6 Weeks of Season

What is going to happen when the season is over? We might catch a break this year since Easter is so late, so the season might run through April. The other thing working in our favor is interest rates are going down, but not for the reasons you might imagine.

Interest rates have been heading down because there is fear of a recession. A little bit could be reduced federal spending, but we discount that because we are still spending too much, and the debt is growing. We are now spending more on interest as a country than national defense.

If the US enters a recession, it may be hard to work down the inventory. We expect there to be a lot of expired listings on April 1, as there is every year. The question becomes, how many of those listings will re-list versus give up?

What’s Different This Year?

We suspect many of those sellers will re-list, for the same reason they listed the first time. In a typical market, many sellers will test the market during season and sell their property, if they can get what they want. Many do, and they sell. Others don’t, and they keep the property and live to sell for another time. What’s different this year is many people chose to sell for financial reasons. Maybe they’re tired of insurance costs going up, or the HOA fees increasing. Some are tired of storms, or traffic. Still others have been called back to work in another state. Whatever their reasons, they no longer wish to own here. That is very different than someone who sells if they can get their price. The motivation level is different.

Price Reductions

This past week we saw 1,200 price reductions on single family homes in Lee County. The average reduction was 3.64%. This tells us more sellers are motivated and willing to get to where the buyers are. Sellers may not like where prices are today, but they know what they must do to sell.

All is not lost. If a property does not sell in season, it doesn’t mean it won’t sell until next year. It simply means there will be less eyes on the property in town because we have more people here in season. Buyers will go home and they will have eyes on the property from afar.

Marketing

This is why marketing is becoming so important. How do you reach buyers when they have gone home? We reach out-of-town buyers differently than local buyers. A seasoned agent with a large marketing budget knows how to reach buyers from everywhere.

Call Brett Ellis or Sande Ellis 239-310-6500 to find out how we reach more buyers for your home. Who you list your home with matters. Price is important, but so is marketing. Sellers don’t mind cutting their price, but only after they know the home has been marketed for all its worth. If you feel like you’ve cut too far and your home still failed to sell, call us.

We are not here to solicit current listings from other Realtors. If your home expired and didn’t sell, why not get a 2nd opinion? If you are currently listed, have those tough conversations with your Realtor about price and marketing.

Get an online home value estimate instantly at www.SWFLhomevalues.com Good luck, and may the season be good to you!

Is Now a Good Time to Buy?

Ellis Team Weekend Open Houses

Open Houses Saturday 1-4 PM

2513 SE 24th Ave Cape Coral FL

11056 Sea Tropic Ln Fort Myers FL

1118 NW 20th St Cape Coral FL

Open Houses Sunday 1-4 PM

4700 Castalia Ct Fort Myers FL

1811 NW 39th Ave Cape Coral FL

13716 Bald Cypress Cir Fort Myers FL

7678 Bay Lake Dr

 

 

 

Shifting Market Pricing Strategies to Attract Buyers

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

Shifting Market Pricing Strategies to Attract Buyers

Shifting Market Pricing Strategies

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

The Pitfalls of Overpricing

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

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

The Power of Strategic Pricing

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

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

Adapting to a Buyer’s Market

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

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

The Bottom Line

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

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

Today’s Short for the Day

The Future of Real Estate March 1

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

National Home Prices Trend Higher

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Today we want to share the national home prices trend data with you.  We’re back fresh from our national convention where KW Research shared some interesting statistics nationwide and for Canada, along with some projections on where the market may be headed.

National Home Prices Trend Higher
National Home Prices Trend Higher

National Home Prices Trend

We’ve included a graph for you to study that shows the history of home prices nationwide over time. Added to the graph is a trend line, which is a 4% gain each year over time. As you can see, from 1990 to 2001 home prices pretty much stayed on track to the 4% average yearly gain. Beginning in 2002 the national home prices trend began accelerating above the line. Home prices began slipping in 2007 but still remained above the trend line. That changed in 2009 when we slipped below the trend line, and we remained below the line until 2021.

What Did We Learn?

It took 12 years to recover and go beyond the trend line again. What this tells us is if we get too far ahead of the national home prices trend line it can take years to recover. This doesn’t mean home prices weren’t going up, because they were starting again in 2012. When we get too far out of normal, the market pushes back and tells us.

In 2021 we pushed ahead of the trend line. This is OK because we were below it for 12 years and had some catching up to do. The concern is how far above did we go, and for how long can we remain there?

In 2006 we were 21% above the trend line. That was dangerous territory. In 2024 we were 9.9% above the trend line. Again, a high altitude, but not necessarily dangerous territory. Time will tell if a correction is necessary.

Alternative Resolution

What is also possible is the home prices will stagnate for a few years nationally, allowing the market to catch its breath, then resume the upward 4% trend after a few years. Nobody knows how the market will catch up or correct, we just know the market will.

In SW Florida we’ve already begun correcting. Unlike the national home prices, our home prices peaked in 2022. The average median home price in Lee County in 2022 was $430,000. In 2024 it was $404,900. That is a 5.84% decline. In January official median prices stood at $399,500 so they are still declining. Keep in mind the yearly average is an average of the year, so end of the year stats can be less than beginning of the year.

Ahead of the Curve

SW Florida may be ahead of the curve. Or, it could be that our home price appreciated more rapidly than national prices and we had further to fall. In 2020 the median yearly single family home price in Lee County stood at $289,000. In just two short years that number rose to $430,000 which was a 48.79% gain. Surely that was above the 4% trend line for SW Florida. We’ll have to calculate that one of these days.

Market Video

We will be producing an in-depth market outlook video that discusses all the research graphs, both locally and nationally, and break it down for you. Our Channel is located at https://www.youtube.com/@Topagent

You can also check out our Free instant home valuation tool at www.SWFLhomevalues.com , or call Brett or Sande Ellis at 239-310-6500. We’ve got about 4-8 weeks left of season, so now may be the time to get your home on the market. Our marketing works year-round, but we do have more visitors here in March and April than in other months.

Good luck, and Happy Selling! Let us know if we can help.