Tag Archives: Fort Myers home prices

Thinking of Selling?

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Thinking of Selling Automated computer home valuation system SW Florida real estate

Thinking of Selling? Sellers have read that home prices are up and interest rates are low, so they’re curious if it would make sense to consider a move right now.  Many have been trapped in their home for so long they forgot what it was like to have options.

They want to take advantage of low interest rates but many are not sure they have enough equity to make a move.  The whole process can seem daunting.

For years the Ellis Team has played with several online valuation models to help curious homeowners out.  We’re excellent at counseling sellers and going over options, but many don’t even want to waste our time until they get a sense that they can do this.  The online valuation models were all over the place until now.

Automated computer home price analysis Fort Myers real estate

No online valuation will ever take the place of what we do; how could it?  The computer has never been inside your home or the homes it’s using as a basis to compare yours to.  It’s just a computer.  We have found one that does a decent job though.

If you’re considering selling simply go to www.swfloridahomevalues.com  In just a few easy steps it asks for your property address, brings up an aerial view of your home and asks you to verify if it has the home size, bedrooms, and bathrooms correct in the database, and voila’ it sends you a beautiful automated selling price analysis for your home complete with a map of comparable sales, a list of comparable sales along with their selling price, date sold, price per sq ft, and more.  It also provides neighborhood ratings and will email you instant alerts on changes to your home’s value.

It’s free to use and very helpful.  All we ask is that if you decide to sell now or in the future, you at least give us a shot and see what we can do for you when you’re interviewing agents.

We’re experts at guiding you through the home selling maze.  We understand many pieces of the puzzle have to fall into place and many times we can offer suggestions to help you.  We’ve helped thousands of homeowners through this process so we’ve gained some experience along the way that can really help you make better decisions.

If it’s just preliminary information you’re seeking, we’ve got tools like this website for that. If you need more detailed information or have questions about how the process would work for you, we’re always here to talk to.  We’re not pushy salespeople; we sincerely like to help people.  Whether you’re buying or selling today or perhaps years from now, the Ellis Team is here to help.  To search the MLS visit www.Topagent.com and you can always call us at 239-489-4042

 

Good luck and Happy Buying/Selling!

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Year End Prices Rise 86 Percent From Their Lows

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Each year we announce the official SW Florida real estate year end prices which are basically an average for the year of the median sales prices for residential homes in Lee County Florida.  It isn’t the December year end sales figure as sales in any given month can be seasonal and can vary from month to month depending on what closes in any given month.

Year End Prices Rise 86% From Their Lows

Official numbers haven’t been released yet so we calculated the weighted average median price each month and performed the calculation.  I would expect our number to closely resemble the official number if/when it is released.  Sometimes the Board goes back and revises numbers in the past and we didn’t do that.  We also noticed that the monthly official sales total 12,060 sales while the January 2014 release shows there were 12,144 closed sales for the year, so perhaps they’re revising past numbers again.

In future years we’ll just track sales directly from MLS as we’re now on one system.  Back in 2008 we described the year end chart as something like a shark’s fin.  It still looks that way but at least we’re coming out of the downturn nicely.  You can see we clearly have a ways to go before reaching the highs back in 2005, but 2013 sure looks a lot better than the low in 2009.

In fact, we’re 86.09% better than we were at the lows in 2009.  Each week we provide data and graphs on the inventory levels, monthly price gains, market absorption, and much more, and only once per year do we get to break it down like this.

In a rising market it sure is a lot more fun to look at this graph.  Back in 2007 and 2008 people were wondering when the market was going to bottom, and in 2009 we had our answer.  We saw it on a monthly basis and it’s very easy to see looking at in on a yearly basis.

Many sellers are calling us and pleasantly surprised that they’re now able to sell their home due to the price increases.  Unfortunately there are some sellers that refinanced or bought at the top of the market and didn’t put much money down and they’re still upside down and can’t sell yet.  Each passing month adds more potential sellers who can afford to sell if they wish to.

Each year prices have gone up combined with their mortgage going down which has allowed more to become free from their home.  So many felt trapped in their home while they were upside down, so they just waited for the market to respond.

If you’re a seller, the time might be right for you to sell now.  Inventory is still low and we have buyers actively looking for the right home to come on the market.  Interest rates are still low so moving to your next home is affordable now.  It may not be as affordable in the future.  Plus, the future home you hope to buy when your home sells may be going up in value too.

Keep in mind this is a market snapshot.  Not all homes in all prices appreciate or depreciate at the same rate.  It’s important to speak to a professional who can help you with your situation.  Of course, if you’d just like to snoop around on the MLS you can at www.TopAgent.com.  If you’re considering selling, please give us a call at 239-489-4042.  We’re easy to talk to and we never pressure you.  We’re here to present you with your options and let you choose what’s best for you.

 

Good luck and Happy House Selling!
If you’d like to search the market as either a buyer or seller, visit www.Topagent.com If you need extra help we’re always available to talk to you and help you make better decisions. Our phone number is 239-489-4042 Good luck and Happy House Hunting!

To search the MLS for properties go to www.TopAgent.com or give us a call at 239-489-4042 You can even search for waterfront property in Fort Myers, Cape C oral, or all of SW Florida    Good luck and Happy House Hunting!!!

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Twas the Week After Christmas

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Twas the week after Christmas, and all through the land, The phones were all silent, and open houses were bland,

But that all changed now that Christmas has passed, for buyers are looking, these listings  won’t last.

The weather up North is really not nice, they’re driving around in heavy snow and slick ice.

It wouldn’t be so bad, if the snow would just melt, the winter season is long, and that wind is just Hell. 

Snowbirds keep calling, new listings better come quick.  I don’t know why they’re driving slowly, our roads are not slick. 

Perhaps they’re driving the neighborhood with a magnifying glass and map, when all they have to do is use our website or search our phone app. 

It’s easy to remember, and works on the go, simply go to TopAgent.com, and search like a pro 

So please dear sellers, pick up that phone, always call the Ellis team, we’ll get your home sold. 

May 2014 be Merry and all your wishes come true, and if we can be of assistance, let the Ellis Team help you

 

Twas the Week After Christmas

Phone calls typically don’t pick up until about Jan 15 or so as seasonal visitors get settled into their rentals.  We do however have an influx of people visiting the week after Christmas and they may be here only about a week or so.  When they see how nice SW Florida is, they quite often inquire about real estate.  If you go to the beach around new years I guarantee you will see a lot of shirts from Wisconsin, Iowa, and OhioState.  That’s because Florida has several bowl games and many of these fans come down to Ft Myers Beach for sun and fun before the game.

This year Wisconsin plays South Carolina in the Capital One Bowl in Orlando Jan 1.  Iowa also plays Jan 1 against LSU in Tampa. Ohio State plays Jan 3rd against Clemson in the Orange Bowl in Miami.

We get visitors from all over and many from Germany and Europe over the Holidays.  Once the New Year’s rush is over many of our visitors tend to rent monthly.  It’s amazing how many calls we receive the day before they leave, and sometimes on the way to the airport asking to see a house.  I guess they really hate to leave, and who can blame them?  We moved here from the Midwest, and most people living here came from somewhere else.

As you can see from the graph prices over the past few years have risen in season and we expect that trend to continue this year.  It’s already happening.  We hope 2014 is a great year for you, and if you have questions, don’t hesitate to call us. 239-489-4042 or visit Topagent.com

If you’d like to search the market as either a buyer or seller, visit www.Topagent.com If you need extra help we’re always available to talk to you and help you make better decisions. Our phone number is 239-489-4042 Good luck and Happy House Hunting!

To search the MLS for properties go to www.TopAgent.com or give us a call at 239-489-4042     Good luck and Happy House Hunting!!!

Feel free to view our Virtual Tours .

Visit our Google+ Business Page

 

 

SW Florida Real Estate Market Continues Its Upward Trend

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Official real estate sales numbers were recently released by Florida Realtors and as expected, median and average prices for single family homes rose again in April.

SW Florida Real Estate Market Continues Its Upward Trend
Median Sale Prices 2012-Present

The median sale price rose 29.8% over last year from $140,199 to $182,000 this year.  The average sale price rose 23.1% from $237,281 last April to $292,201 this year.  Prices have definitely risen this season; however they typically do this time of year.  We are comparing numbers of last year at same time, so it’s a legitimate 30% increase over last year.

SW Florida Real Estate Market Continues Its Upward Trend

April 2013 prices are up over March numbers which is also typical.  April’s $182,000 was up over March’s $168,000.  Going forward we’ll have to watch as last year prices hit their plateau before steadying out the rest of the year.

 

Home prices by price category in SW Florida
SW Florida Home sales by price category April 2013

When analyzing by price range again we see a drop in closed sales below $100,000 simply because there isn’t much inventory there as home prices have graduated higher.  Those some entry level or investment homes are just higher in price again this year.  Finding sub $100k priced homes is difficult at best.

When prices are rising people automatically assume it’s across the board and they can add 30% to last year’s home value regardless of what price range their home is in.  This simply is not true, although we have seen increased sales in almost every category.  The over $1 Million category continues to struggle.  The SW Florida real estate market is on the rise, but the overall economy may be holding back super premium prices combined with excess inventory in the $ 1Million+ category.

We’re really seeing excellent sales in the $200,000-$400,000 range.  That’s the sweet spot right now in Southwest Florida.  This may change in time, but right now that’s it.  With companies like Hertz moving to Estero and another company I’m hearing rumors about, this sweet spot could do very well for years to come.

Eventually the over $400,000 range will pick up more as well.  It’s doing OK, but if you remember back to the hay days, it seemed any new home in South Fort Myers was $400,000 and up.  Now you can get a pretty nice home for $400k.

The financial markets were spooked last week Fed reports that some Fed governors support raising interest rates by ending the government bond buying spree if we see continued economic development.  This would essentially raise rates.  While this will happen one day, I doubt there’s enough support to do it now.  This will eventually cut into buyer’s buying power when that happens.

Nationally home prices were up 10.2%.  SW Florida is absolutely leading the nation right now.  We did so back in the run-up.  The difference today is its sustainable and we’re still at or near replacement costs.  Back in the upswing in 2005 we were so far over replacement cost.  We were artificially too low in price for the last 7 years and the market has been correcting the past 3-4 years now.  Look for continued strength as we have positive economic news locally.  Keep your eye on national economic news and interest rates and we’ll let you know if we hear more details about landing another big company.  It really makes no sense to report on that unless and until it happens.  As you might have read, the Hertz deal almost didn’t happen, so we never believe anything until the ink is on the paper.

To find out what your home is worth online visit www.SWFLHomeValues.com  To search the MLS, visit www.LeeCountyOnline.com

Good luck and happy house hunting.

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Inside the SW Florida Real Estate Market Numbers

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Last week we reported that prices were up in March over last year’s numbers and listings were down, but that doesn’t tell the whole story.

This article won’t tell the whole story either as no one article could, however we would like to dig a little deeper and explain some factors influencing the market.

Over the years foreclosures and short sales weighed down the market, and in fact prices became artificially too low as homes were selling well below replacement cost. This has impacted builders not being able to build until recently. Prices have risen such that some home builders are able to build again.

Inside the SW Florida Real Estate Market Numbers

 

As you can see from the graph, traditional sales picked up 8.2% while foreclosures fell 34.5% and short sales fell 45.1% This has led to an increase in prices as the artificial factors influencing prices to the down side are drying up. Median sale prices for traditional sales are up 9.5% over March 2012 numbers and foreclosure prices are up 18.9%. Both pale in comparison to the 42.7% increase in the media sale price of a short sale. You can see the downward pricing pressure has abated, and the rising tide is lifting all boats, even distressed sales.

Estero, Bonita Springs, Fort Myers and Cape Coral home sales by price range
Home Sales by Price Range

Inside the SW Florida Real Estate Market Numbers

If we dig deeper and look at closed sales by price range you’ll quickly notice homes priced under $100,000 are down sharply. That’s not because there isn’t demand but rather limited supply as prices have outgrown this category.

You’ll probably notice the biggest winner is the $250,000-$300,000 category as sales jumped 43.7% in this range alone. Sales are down in the $150,000-$200,000 range simply because it’s getting harder to find those homes on the market. Most of these same homes have graduated into the over $200,000 range from last year.

Most all price ranges saw increases except for the over $1 Million category. Even though the overall market is improving, the overall economy remains a drag on expensive luxury homes. There is still a market, but not a market in which to over-price. All price ranges are sensitive, and the $ 1 Million+ market is no exception. We would expect to see some increases in the over $1 Million range going forward.

Typically activity increases the first half of the year and data is only month by month through March. April may turn in some really good numbers too. Many sales occur through Easter and Easter was early this year. Visitors seemed to remain heavy at the beaches and Sanibel and Captiva even after the heavy selling season. This could bode well for tourism dollars and help local residents who run businesses here.

In April, May and June we’ll see the final results of those February and March sales, so stay tuned. Listing calls are picking back up again, at least here at the Ellis Team. Inventory is down so now is a good time to sell even if we don’t have as many visitors here looking today as we did a few months ago. Many may come back in the summer and complete a purchase because their interest was piqued back in season.

If you’ve got a property to sell, please give us a call, we can help. Our marketing works. In some price ranges we literally have difficulty finding more than 2 or 3 properties that match buyer’s criteria. We can be reached at 239-489-4042 or visit our website at Topagent.com

Today the Hertz Corporation announced it is relocating its world headquarters to Lee County Florida which will bring over 700 jobs to SW Florida at an average wage of $102,000.  This will help an already improving real estate market in the Fort Myers, Cape Coral, Bonita Springs, Estero real estate markets.

2012 Shaping Up to Be 5th Best Year on Record

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Sales volume has slipped this year primarily because inventory levels are down. However, we have noticed a slight trend in the past few months worth noting.

SW Florida Real Estate sales 2012

Inventory levels actually rose in September for single family homes, albeit only 5 homes which is rather insignificant. Because sales are less, it did raise the standing inventory to a 3.5 month supply, up from 3.4 months the previous month. Both numbers are low.

Another trend we are watching is the median sales price, which has fallen for 2 consecutive months. This is a seasonal trend we see this time of year so we are not alarmed. Heading into season we’re going to need all the inventory this market can muster, and right now it may not be enough. Prices are still much higher than last year.

Fort Myers Cape Coral Media Sale Prices

We would have liked to see home prices rise the past few months, but not for the reasons you might think. Fort Myers, Cape Coral, Naples, and all of SW Florida is considered a declining market by FNMA and Freddie Mac. The appraiser usually notates this on the appraisal report to the lender. According to guidelines, and area must have 3 consecutive quarters of rising prices to break a declining market tag.

Lee County had a strong 4th qtr 2011 and 1st qtr 2012 but came up short in 2nd qtr. This contradicts our data so I’m not sure how they calculate this. I’m hearing whispers that the tag may come off Collier County Florida in January, but we’ll wait and see if that actually happens.

The reason this is important is because it removes additional restrictions and paperwork requirements when the tag is lifted. FNMA is already making loans tougher this November with new guidelines. For instance, self employed borrowers will find it more difficult and cumbersome to receive a mortgage. They will require personal and corporate tax returns for last 2 yrs no matter what. Lenders are just now receiving the new guidelines and sifting through the changes.

September is seasonal, and it’s not uncommon for sales to lighten this time of year. It does feel on the street as though there’s a dichotomy to the market. Agent listings seem to either get a ton of activity and offers or very little. This may change in the next few months as snowbirds tend to scoop up higher priced inventory for second homes and investment.

The upcoming election may have also stifled buyers who are afraid to make a big purchase until the see which leadership will guide the country and what the new economic landscape may look like. We’ve seen on TV many company CEO’s waiting to make hiring and firing decisions until after the election, and it’s quite possible buyers will do the same. If you’re worried about your job, chances are you’re not in the market to change your housing.

Once the election is over, the direction the nation and economy goes in may become clearer, and consumer confidence could rise. If and when that happens we believe SW Florida is poised to take advantage with lots of potential for price appreciation. All signs point to higher once the job outlook improves, and help may be just around the corner.

Good luck and Happy House Hunting!!!

 

Home Prices Rise Again in July

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Remember last week’s article where we talked about the housing numbers becoming more reliable? This week is a perfect example and I think you’ll see the changes this month.

SW Florida Single Family Inventory
Months Supply of Inventory

Last month official numbers reported 3,579 active single family home listings which equated to a 3.1 month supply of inventory. This month the Board of Realtors is reporting 4,838 active single family home listings and a 4.3 month supply of inventory. We think the latter number is most accurate now that they’ve reclassified the definition of an active listing.

The market hasn’t changed much in that regard, just the way we report numbers. Prices rose again to a median price of $129,900. In July the price dropped from June and we said not to worry, that was more a function of less inventory and not indicative of demand. Demand is still strong and what’s selling in a given month is highly dependant on what new inventory comes to the market.

SW Florida Real Estate Single Family Home Prices
Fort Myers-Cape Coral Real Estate Prices

In the past few weeks we’ve brought several homes to the market and we’ve priced them above past sales in the area because prices have been rising. You can’t do this in a declining market but we definitely do not have a declining market in many areas. We’ve seen multiple offers on many of our new listings as the market is responding. There is much competition from buyers for new listings that hit the market, especially if they are non-distressed and available to sell now.

You still have to price your home within normal market limitations, and an experienced agent can help guide you through a changing market. Markets rarely stay stagnant for long, so it pays to research the market and identify trends. Keep in mind, SW Florida is a large market and there are several sub markets. Not every home, subdivision, or price point goes up and down in unison. For more information on this, feel free to search our Blog for the term Bunching. www.Blog.TopAgent.com

Appraisers are starting to take note of the changes in the market and we could see the “Declining Market” tag come off SW Florida which would ease up some lending standards. This would be a most welcome change for buyers, sellers, agents, and loan officers alike.

Add to this a report that shows foreigners are flocking to buy property in Florida and the future could be bright going forward for Florida home sales. Florida led all other states with 26% of residential real estate sales going to foreigners, with California next at 11%. People around the world have figured out that Florida was on sale but has now stabilized and on it’s way up.

Canada was the largest country buying property in the US at 25% followed by China at 11% and Mexico at 8%. America is still a safe bet considering the European debt crisis and our low prices, combined with a low value of the dollar right now. Foreigner’s have multiple ways to make money (real estate appreciation & currency) and hedge their risk.

We’ll continue to monitor the market and report what we find. Good luck and Happy House Hunting!

Health Care Tax on Real Estate Sales?

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Maybe you’ve received the e-mail making the rounds these days which states “Under the new health care bill – did you know that all real estate transactions are now subject to a 3.8% sales tax?”  Of course I was alarmed because a tax on real estate would be just one more blow to the economy, as real estate contributes 32% to our nation’s GDP (Gross Domestic Product).  

Upon searching factcheck.org I discovered this is partially true.  According to factcheck.org “Democratic lawmakers decided on a new 3.8 percent tax on the net investment income of high-income persons.”   They go on to write that the law is misleading, and it would be easy to see why anyone reading it would believe the 3.8% tax applies to everyone that sells a home.  So the circulating e-mails may not have been intentionally misleading or malicious. 

Furthermore, the 3.8% tax won’t apply to everyone.  It will apply only to profit on the sale of a home exceeding $250,000 for a single person or $500,000 for a married couple filing jointly. There are some minimum income requirements too. The tax is not scheduled to go into effect until 2013, after the next election.  We are not tax professionals, so we encourage everyone to consult with their own tax advisor. 

It appears that Congress and the President have snuck in additional capital gains taxes on real estate.  It is easy to see why this fact has not been advertised because it is not very popular with Americans right now.

Home Prices Slip

 

Median home prices are up over 9% from last year, but they did take a step back in May, down 4.53% from April’s numbers.  The median sales price of a home stands at $96,900, down from $101,500 a month earlier but up from $87,900 last year.  Home sales remained strong in April with 1,460 sales in May, which was up over last year’s 1,417 number. 

Fort Myers & Cape Coral Florida Median Home Sale Prices 2009-2010 - SW Florida Real Estate
Median Home Sale Prices Lee County Florida

We have noticed a drop in pending sales in June. We know that many sales have been delayed or fallen out due to the flood insurance expiration.  Congress has not renewed the National Flood Insurance Program, so essentially it’s impossible to get a mortgage on properties that require flood insurance.  One tactic people are using is buyers assuming the sellers existing flood insurance, if it exists.  You cannot do this with hazard insurance, but it can be done with flood insurance. 

We’ll keep a close eye on the SW Florida real estate market going forward.  Oil has not hit here, and as we wrote last week, there are scientific reasons why it may not ever.  We have lost one sale from a buyer who definitely wanted to buy a waterfront home but is waiting to see what happens with the oil spill.  Between the oil, flood insurance, tax hikes, expiration of tax credits, and the like we’d hope that our government would be more proactive in stimulating real estate activity, because we know real estate sales stimulate the economy.  At the very least, renew the flood insurance program and eliminate tax hikes on sales so people who want to purchase can again.

SW Florida Real Estate Market Sets Another Record in April 2009

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Home sales in the SW Florida real estate market set an all-time record in April 2009 with 1,468 single family home sales, eclipsing the mark set in March of 1,464.  Sales are literally off the charts as affordability is in the market.  In fact, median home sale prices in the Fort Myers Cape Coral area fell by 3.39% last month down to $85,500, down from $88,500 in March.  For a comparison of monthly home sales in SW Florida from 2005-2009 see the latest Fort Myers Cape Coral home sales chart.

Median prices in SW Florida are down 57% from last year, down from $200,300 to $85,500  Median single family home sale prices have fallen every month this year except for February when they went up 2.74%  See our SW Florida Real Estate Month Over Month Prices chart.  To illustrate just where median home sales prices are today Vs. where they have been every year since 2005, visit our SW Florida Real Estate Sale Prices 2005-2009 chart.

Condo sales in the Fort Myers and Cape Coral area were up 7% over last year, and probably would have been much higher if FNMA hadn’t changed financing rules making it increasingly difficult to finance most condominium associations throughout SW Florida.  It used to be we worried about whether or not the buyer was qualified for a mortgage, and this past year we learned it was much more difficult to get a condo association approved than it is to get the buyer approved.  Banks have over-reacted and will cause further problems in the condo market going forward, which may actually increase delinquencies as existing owners will not be able to refinance or sell to anyone other than a cash buyer. 

Condo median prices in Cape Coral and Fort Myers fell 33% from $195,500 last year to $131,800 this year.

Statewide single family home sales were up 18% and median home sale prices were down 31%, and condo sales were up 21% and median condo prices were down 40%.  As you can see, Fort Myers and Cape Coral are leading the state, as our home sales are up 81% over last year compared to the statewide average of 18%.  SW Florida condo median prices were down 33% compared to the state average of 40%

The Fort Myers News Press interviewed Brett Ellis of the Ellis Team at RE/MAX Realty Group in Fort Myers about Lee County’s all-time sales record.

April 2009 Ellis Team SW Florida Real Estate Current Market Index

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SW Florida Real Estate Current Market Index April 2009
SW Florida Real Estate Current Market Index April 2009

 

The Ellis Team at RE/MAX Realty Group released the April 2009 SW Florida Real Estate Current market Index which accurately predicts the local real estate market’s future direction, and once again the index improved. Fort Myers and Cape Coral recorded their lowest numbers since October 2005.  In October 2005 the number stood at 3.44, and the index today stands at 3.72  The lowest on record was July 2005 when the index stood at 1.07.  The lower the number the better the market is for sellers and the higher the number the better the market is for buyers.  The lower numbers are a result of higher transaction volume combined with declining inventory levels.

 

Lee County Florida index numbers for single family homes stands at 4.26, down from 5.07 in March.  We’re seeing tremendous sales numbers for a variety of reasons. Not only do we have home affordability back in the market, but also the perception that we’ve seen drastic price cuts and the end in price declines may be near.  Buyers do not want to miss out on the possible buying opportunity of a lifetime.   Along with attractive pricing is record low interest rates, declining property taxes, and a decent but dwindling supply of homes to choose from.  Lastly, the government passed a 1st time home buyer tax credit that gives buyers up to $8,000 tax credit to buy a home and if the home is kept for three years does not have to be repaid to the government.

 

Rarely do all the stars align for a perfect buying opportunity, but that’s just exactly what we have right now.  The SW Florida real estate market has been heating up for some time, and in 2009 we’re seeing some dramatic results on the transaction volume side.  Pricing is a lagging indicator and will follow once inventory is depleted further.  We’ve already seen a 2.74% rise in prices in March over February 2009 numbers.  Total single family home inventory in Lee County fell to 12,356 in April, down from 13,019 in March.

 

Cape Coral is again leading the way as the CMI index numbers for the Cape stands at 2.88.  Fort Myers CMI numbers stand at 7.26 Inventory is dropping in both Fort Myers and Cape Coral, and pending sales are increasing.  We believe when official sales numbers are released later this month we’ll see record sales for March, and sales activity going forward for April and May looks to be very strong.  Current home prices are so far below replacement cost that builders are not even attempting to build yet.  Once this inventory is depleted prices may begin to rise on a gradual path towards replacement cost, and when that occurs builders will again start building.  We believe we are still some time off from that point; however we are amazed at how quickly homes are selling and how the SW Florida real estate market has heated up.  Once the overall economy improves and businesses start hiring again in force, we believe prices could rise at a quicker pace and approach replacement prices.  Until then, home sales will be great as long as the price is attractive, and we may enter No-Man’s land once we deplete existing inventory and the market absorbs what to do once the bargains are all gone.  The economy and employment will eventually drive home sale prices, and home sales may help drive the economy back to health.

 

Stay tuned as the market is definitely heating up, and the Current market Index points to more good times ahead.