Low interest rates fuels surge in real estate closings locally and nationwide. Nationally home sales for homes and condos were up 2.5% from April, albeit down from last year 1.1%.
In SW Florida single family home sales were up 8.1% over last year. With rates remaining low for the short term, we could see a continuation of good times for real estate for the rest of the year, if not longer. New pending sales were up 1.4% in May, and new listings were down 3.2% in May. All these are great signs.
We still have 7.7% more inventory than we did last year, and pending inventory was down 2.3% in May, so it’s not all Boom time ahead. Overall, we have a fairly balanced marked with an official 5.7-months’ supply of homes on the market. That’s more than the 5.4 months’ supply last year but could get better if rates stay low.
One of the indicators we look at is total dollar volume of sales in the market. In May of 2019 we reached $569.1 million in sales in Lee County. In 2018 that number was $509.4 million. That’s an 11.7% rise in volume, which is a good sign going forward.
What’s the takeaway from these official numbers? It’s a good time to buy, and a good time to sell? You might ask, how can it be both? The answer is it deeply benefits both sides to buy and sell right now. Buyers benefit from lower rates. This could save them tens of thousands on the mortgage of 30 years.
Low Interest Rates Fuels Surge in Real Estate Closings
It’s also a good time for sellers because today buyers qualify for 11% more home than they did last year. This means more buyers just popped up into your price range, assuming you priced your home where it should be. Who wouldn’t want more buyers shopping and qualifying for your home than last year?
And, as a seller, chances are you’re going to buy another home somewhere. If you sell while rates are low, you get to purchase your next home while rates are low. So, it’s a double win for sellers as they have more buyers for their home, and they get to save on their next home.
The challenge most sellers have is, what do I have to do to get my home ready to sell, and where would I go? These might be easier answers than you think. A knowledgeable Realtor can give you information on both options. We can even refer you to another great Realtor somewhere else if you’re not staying in the area.
Some improvements are necessary. Some are a waste of money and won’t put money in your pocket. Others won’t add much money, but they will help your home sell. Call Sande or Brett 239-489-4042 Ext 4 and let’s talk about your options. Sometimes we can suggest resources to a problem so it’s not really a problem.
Sitting down with us and going through the MLS can help you identify if there are better options for your next home. We also know about new communities and incentives the public doesn’t always know about. We might be able to get you into a new home for a lower payment than you have now. The advantage to that may be lower insurance premiums and lower maintenance costs going forward. Newer homes tend to be energy efficient as well, so not only would your payment go down, but also all your other costs.
The thing is you don’t want to rush anything. You want to take your time and explore your options. We don’t know how long these rates will stay this low, so starting the process now may be a good idea. After a first meeting, you’ll know your options and you can decide if it’s worth exploring further. We have a team of agents that focuses on finding your next property that fits your needs, and a team dedicated to maximizing your current home’s value and make it sell as quickly as possible.
There’s no sense in moving unless you improve your situation. Many want to do that; they just don’t know where to start. Call Sande or Brett to explore your options, or go to www.SWFLhomevalues.com to get your home’s value online for Free!