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Southwest Florida Real Estate Home Prices April 2017

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Southwest Florida real estate home prices increased 6% in April up to $249,000.  Median home prices had been $235,000 last April.  However, while the median price saw a rise, the average sale price only increased .9% over last year.

Southwest Florida Real Estate Home Prices April 2017

As you can see from the graph, in 2016 April’s numbers increased over March.  That didn’t happen this year.  The median price actually slipped $6,000 this April from March and the average sale price fell almost $15,000.

Pending inventory is down 10.1% and new pending sales were down 5.1%.  Active listings were up 4.6% although new listings were down 10.1%.

What does all this data mean for the Southwest Florida real estate home market?  We believe home prices have risen enough such that we’re in a fairly balanced market.  Our market is no longer rising because it had over-corrected and was undervalued.  Standard economic forces will be the driving factor going forward.  As we write this article today the Fed’s decision has not been announced.  It is widely expected they may raise rates .25% this week which would affect car loans and equity lines.  It may or may not affect 30 yr mortgage rates.

We do know that since the election over $4 Trillion dollars of wealth has been created in the stock market.  Home prices have risen as well.  Could we see some of that stock market money make its way over into the real estate market?  It’s happened before.

Rising interest rates typically erodes buyer purchasing power, so that’s not always good for the real estate market, although rates are low by historical standards.

Could baby boomers withdraw lofty 401k and investment money and move over to real estate?  It depends on their outlook of the stock market, interest rates, and the economy going forward.

Jobs are being created again too.  Over 700,000 have been created since the election.  This may be good news for the real estate market, although jobs are shifting.  Have you noticed retail sales are taking it hard?

Companies like Sears, Kmart, Lowes and others have struggled.  Shopping malls are closing across the country as shopping patterns are changing.  More are shopping online.

We’ll be keeping an eye on economic data as we think that will lead to consumer confidence.  We’ll also be looking at inventory supply numbers as well as builder inventory numbers.  We think there is an opportunity for builders to sell homes again.  If they build it, buyers will come.

Many local sellers would like to sell.  They just don’t know where they’d like to live yet, so they’re waiting.  In addition to touring available existing inventory, our team has been checking out new construction projects.  We think this may be the driver that unlocks home sales.  While inventory has risen some, it’s still low enough that home sellers don’t feel like they have enough choices to make a move.

It’s a double-edged sword though because as new construction inventory opens, there becomes more competition for existing home sellers.  Our economy needs both to fully thrive, but in the right proportions.

Southwest Florida Real Estate Home Prices Steady

I like where this market is right now.  The Southwest Florida real estate market is balanced depending on which price range you’re in.  If you’re thinking of making a move in Southwest Florida, give our team a call.  We know the existing inventory and the new construction projects.  You don’t pay more to use a Realtor when buying new.  Our fee is already built-in to their price.  It’s cheaper for them to pay realtors a commission than it is to advertise to bring in that many sales.  Plus, they know we have the ability to bring in more customers, so they treat our customers better.  It could cost you by not knowing all your options.

You need to know things like county versus city property taxes, CDD fees, homeowner and flood insurance rates.  These vary by location and age of the home.  We can help you sort all this out so you make a great decision.

Call our team at 239-489-4042 or visit www.LeeCountyOnline.com to search all the homes.  If you have a home to sell, call us and ask for Sande or Brett.  We’ll sell your home fast and for top dollar so you don’t miss that next opportunity.

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Watch the Future of Real Estate June 2017 Southwest Florida Real Estate Market Update

Agents Reporting Lower Sales Counts Across Lee County

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This past week we’ve been speaking with agents who have noticed lower sales counts across the county, which begs the question “Is something happening to the local real estate market?”

June’s official numbers won’t be released until a few days after this article is written, so we decided to look at May’s numbers and combine some current data from MLS and a few large real estate companies in SW Florida.

Agents Reporting Lower Sales Counts Across Lee County
May 2016 SW Florida Housing Numbers

Agents Reporting Lower Sales Counts Across Lee County

If you look at May’s data you’ll notice pending inventory is down 12% from last year. New pending sales are down 6.4% while inventory is up 14.1% This chart lends credence to the fact that the number of sales counts are softening.

At Keller Williams our office tracks Listings Sold Volume. The board was down 13.21% in June while our office was up 25.33% That’s a differential of 38.54% I spoke with 2 large RE/MAX offices and they both said they were up about 38% and 50% respectively. I’m not sure if that was sold volume or units, but either way they’re up.

So why are some offices increasing sales while others are obviously losing sales? The answer can be complicated. Perhaps the office had 1 or 2 large sales skewing the volume numbers. Perhaps they sold a chunk of homes to an investor. Or, perhaps their agents are just more tuned in to what’s going on in the market and making adjustments.

Agents Reporting Lower Sales Counts Across Lee County Market Watch
7 Day Market Watch

I pulled a 7 day Market Watch available through our MLS. Price decreases are outpacing new listings. I was excited to see pending sales outpacing new listings as well, although we know not all pending sales will close. You’ll see some sellers giving up by looking at the terminated, expired, and withdrawn counts.

It can be frustrating to bring a property to market and have little to no showing activity. When this happens it tells you that you’ve overshot the market. If your home is priced at market it should receive showings. If your home is way above the market, it’s not really on the market and is shunned by potential home buyers.

Sometimes the sellers believe the market is at one point and the buyers believe it to be at a lower point. When this stand-off occurs, activity lessens. The sellers that want or need to sell react and make a move to find the buyers. When this occurs, a property will sell.

We recently had a property go under contract. We picked a price and had lots of showings. It was priced close enough to where buyers would look at it, but not make an offer. We reduced it once and got even more showings and one low-ball offer. We reduced it a second time and it sold, for much higher than the low-ball offer.

The home initially was priced right where it should be based upon past sales. However, the market rarely stands still. In that price range we noticed a shift in the market. If this seller would have stayed at yesterday’s prices, the home could still be on the market.

You never want to get caught chasing the market down. You want to get ahead of it. People read that prices are up, and they are up 4.7% in May versus last year. That doesn’t tell the whole story. That is median price, and some price ranges are increasing while some are decreasing.

Knowing where your home fits is crucial. Sure, you can interview 5 agents and pick the one who says the highest price. But have you done yourself any favors? If your home sits on the market and 6 months later you’re shaking your head because it hasn’t sold, are you going to be happy you selected the agent with the highest price?

We’d suggest interviewing agents who know the market, will be brutally honest in regards to price, and markets the home in a way to reach the entire market. If you do that, you will have success. If you don’t, you can find that agent the 2nd time around and hope that prices haven’t declined further. If it was priced right the first time, it should have sold. Keep in mind, just because you overprice it today doesn’t mean the market can’t fall further. If it does, you’ll just be chasing the market down.

See Also Business Observer Article on SW Florida Real Estate Market

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