2020 has been a good year in real estate for buyers and sellers alike. Both have benefited for different reasons. The rising home sale price trend continues despite pandemic concerns.
Year to date median home prices are up 5.6% and averages home sale prices are up 9.8%. Most experts did not know how the shutdown was going to affect real estate sales or prices for that matter. Busy Realtors on the front line saw a developing trend and we reported it to you as it became apparent.
Rising Home Sale Price Trend Continues
Quite frankly, we were not surprised and in fact predicted this, because we have seen similar events in the past shape consumer behavior. If you read our weekly article, we have talked about 9-11 and how that changed people’s travel and home buying preferences. Covid-19 may be a similar such event with similar results.
Interest rates are low which is helping home buyers. We are seeing more financed deals than cash deals. For instance, closed deals were down 14.1% in April. Cash deals were down 39.3% For people that have jobs, they are financing. Another boom down the road will be homeowners who refinanced. Those homeowners will have more disposable income in their pocket after this is all over which may help the economy going forward.
The economic stimulus is not all out and in the hands of the people yet. Some are predicting a v-shaped recovery, while others predict a u-shaped. A few predict a w-shaped, and this is what we don’t want. We believe the 3rd quarter will be robust compared to 2nd quarter, and the growth rate will set all-time records. It will not bring us back to pre-covid 19 levels, so people should not read the headlines and think the economy is all the way back. It may take years before it’s all the way back, and yet recovery will be welcomed.
Housing inventory is down 22.9% from last April, and we have noticed an uptick in sales activity in May. These numbers will not be reported yet for another month, so you’re getting inside information early. It pays to know a busy Realtor on the front lines.
Some speculate that with near 20% unemployment, home sales and prices must go down. This would be true if we had excess supply. We simply do not right now. With record low interest rates, and people going back to work, we may not have the opportunity to slide much, if at all.
All real estate is local. Not only are we seeing buyers coming in from out of state to escape regulations and living conditions where they are, we are also seeing it in-state buyers. While inventory is shrinking here, it’s also shrinking other places in Florida. We are seeing more people coming over from Miami area and purchasing here, which is putting further pressure on inventory. We saw this back in the boom. The only difference today is we do not have an over-supply of homes like we did back then.
Our Office is Moving
Keller Williams and the Ellis Team office is moving south on Summerlin. Our new address is 12840 University Dr in South Fort Myers. It is located directly across from FSW college. This is kind of like old times for the Ellis Team as were in a nearby office on University Dr for years with another company before moving to Summerlin Lakes Dr, and eventually over to Keller Williams. We look forward to seeing past and future customers at our new location.
Our team and company are growing. We might be the only real estate company expanding right now, and that’s because our lead generation and technology are second to none. If you have a home to sell, please call Sande or Brett Ellis at 239-489-4042 Ext 4 or visit www.SWFLhomevalues.com for a free analysis of your home. You can tell us how accurate you believe it is.
If you’re looking to purchase, visit www.LeeCountyOnline.com The information is updated in real-time, so you’ll never miss out on new listings or price changes.
We are moving this weekend to better serve you. Make your move with the Ellis Team at Keller Williams Realty. Knowledge and experience matter in changing times. Put our experience to work for you.
See last week’s article “Buyer Beware Listing Inventory Disappearing Quickly“