I recently read an article in USA Today about how the housing inventory shortage nationwide reached 20-year low and how it’s affecting the market. While every market is local and is influenced by its own factors we do not work in isolation of other markets. Therefore, national stats are also of interest to us.
For instance, if the economy is down nationwide chances are it’s affecting us here in SW Florida. Additionally, if snow birds have a hard time selling their properties up North, they may not all be able to purchase down here.
The article mentions there is a 4.3 month supply of homes on the market nationwide. Locally we calculate the supply to be 4.22 months, so we’re pretty similar to national statistics. One of the reasons mentioned in the article for the tight supply is that baby boomers aren’t likely to move in the next year. 78% of baby boomers are happy with where they live, and baby boomers own about 33 million homes.
While many baby boomers would love to move to Florida or Arizona, some are reluctant to leave family and friends behind. While this is mentioned in the article, it’s not a trend we’re seeing locally. It appears to us now more than ever baby boomers are eager to move and family isn’t holding them back. Of course, we tend to deal with those that are contemplating making the move versus those that never would.
Millennials have started purchasing recently which will add to tight supplies. We believe as baby boomers age they will begin to think about smaller homes, homes in warmer climates, or homes that meet their needs due to health reasons. Not every baby boomer will appreciate a 2 or 3 story home up North. Once they decide a 2-story home is no longer their best option, they may consider whether staying up North is too. It opens the whole gamut once a move is considered.
Thankfully builders are building again. Unfortunately, most buyers don’t know all the building developments available to them, nor which ones are offering incentives and discounts. Most buyers don’t realize they get a better deal through a realtor than they do walking in on their own.
If they walk in and ask that question the answer will be it’s the same price whether you’re represented by a Realtor or not. They may not tell you about incentives, and they certainly won’t tell you about competing builders in other neighborhoods.
We’re getting early word that the Fed will scale back it’s $4.5 Trillion in bonds beginning in September. This will raise interest rates. If rates go up we could see a buying frenzy followed by a reduction in the rate of growth in home prices. Nationwide the S&P Core Logic Case Shiller home price index was up 5.6% due to low inventory. Rising rates could curtail that growth.
Either way we need more homes. The economy is doing better and people are buying. If you’re thinking of selling, you might want to cash in before the stream of sellers enter the market. You can see from the chart inventory is lowest in the summer and picks back up again starting in September/October. Why compete with all the other sellers next season when you can have them all to yourself now?
If you’d like to talk about selling your home, please call Sande or Brett at 239-489-4042 Ext 4 Or you can go to www.SWFLhomevalues.com and find out your home’s value for free in minutes.
If you’d like to search for your next home check out www.LeeCountyOnline.com Our team can help you find your next home and sell the one you have, making it a smooth transaction.
Always Call the Ellis Team at Keller Williams Realty! We’re here to help.
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