Tag Archives: month’s supply of inventory

Advantage Southwest Florida Sellers as Sales Outpace New Listings

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For months we have been telling you about strong real estate sales and dwindling inventory.  If our local market were a tennis match, we would say advantage Southwest Florida sellers as buyers are scooping up properties faster than new listings are entering the market.

Advantage Southwest Florida Sellers 7 Day market Watch

In the past 7 days 551 homes went pending in Lee County while only 294 new listing came on the market.  This is a daily trend, and it has been happening for months.

If you are a seller, this is a great time to sell.  You have far less competition from other sellers.  In fact, buyers are no longer in competition with the seller, but rather all the other buyers trying to purchase the same property.

Pricing is still key.  Just because it is a seller’s market does not mean buyers will overpay.  Of course, the bank appraiser will also have a say in it too.  The other way to look at it is this way.  Why would you want to overprice a home and miss one of the greatest opportunities in years?  While we expect the real estate market to do well into the future, you may not have inventory levels this low again.

Advantage Southwest Florida Sellers

Advantage Southwest Florida Sellers Months Supply of Inventory

No matter the market, we always see sellers that miss the market.  When it’s going well, they overprice it and expect the market to catch them.  When it’s on the way down, some sellers chase he market down and never quite get there, so it sits.  If they do have to sell, it can cost them.

We like to sit down with sellers and discuss their options.  We can discuss proper pricing strategies along with how our marketing is reaching out of town buyers.  What do you do when there are layoffs in town?  You go find buyers out of town, and our marketing is doing that.

Targeted Online Real Estate Advertising

For instance, last weekend we ran an online ad.  We had signups from 8 local buyers, and from 35 out of state buyers.  Add that to the 20 open house attendees and we created 63 interested parties in one weekend.  It is no wonder we are close to selling that home at the time this article is written.

Marketing must be geared to where the buyers are, and you need a Realtor who thinks out of the box to reach those buyers.  There are lots of buyers in SW Florida.  You just have to know how to reach them.  There are lots of buyers nationwide.  We know how to reach them.

Brett and Sande have the data to help you make the best decision for your family.  We do not like to under-price a home.  You do not need to in this market.  We can show you how to get Top Dollar.  If you have more buyers and more offers, you have a greater chance at top dollar.

When you overprice your home, you may get little to no offers, and that would be sad.  If you’re wondering what you’re home is worth and just want a quick analysis, you can go to www.SWFLhomevalues.com.  It will tell you instantly what your home is worth and how confident the value is.  You can then call Sande or Brett and we will tell you if we agree.  239-489-4042 Ext 4 

This weekend is Independence Day.  Enjoy this day, and this weekend, and remember those that fought to make this day possible.  It may also be Independence Day for your home.  You may now have enough equity to make the move you have been wanting to make.

Home values have been on the move.  Inventory is low.  Call Brett or Sande and let us see if a move is in the cards for you!

See last week’s article “Real Estate Transaction Dollar Volume Drops 43% in May“

Has the National Real Estate Market Peaked?

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National experts and economists are warning that the national real estate market may have peaked. This past week we attended the Keller Williams Mega Camp and spoke with top agents from all over the country to get their perspective as well.  We’ll attempt to answer that question. “Has the National Real Estate Market Peaked?”

There are many forces that influence how well a market is doing, and in 2018 we’re seeing a new dynamic we’ve never seen before.  Typically markets pull back due to economic factors like unemployment, interest rates, consumer confidence, etc.  This year we’re seeing fewer sales nationwide due to lack of inventory.

Has the National Real Estate market Peaked? Months Supply of Inventory

Inventory is starting to rise again.  So are interest rates which are affecting home affordability.  Prices rose approximately 4-6% nationwide last year, while incomes rose 2-3%.  In a fully indexed market, this isn’t sustainable.  Keller Williams’ leadership mentioned we’re in a supply driven shift, which is unique because usually shifts in the market are determined by other factors we mentioned earlier.

So, the answer lies in what happens first?  As we exit the supply driven stall, what wins out?  Does consumer demand eat up the new inventory, or does interest rate hikes take its toll and dampen the ability of buyers to pay more?

Nobody knows the answer to this, but some experts are predicting lower sales due to a softening in some markets.  Mortgage applications are down 3% last week nationwide and have been down for 4 straight weeks.  Mortgage bankers are noticing a 17% decline in year over year mortgage applications.

The economy is on a roll.  Unemployment is down to 3.9%, and demand for housing has been strong.  We all know real estate is local.  SW Florida can be influenced by other markets, but each market has its own strengths and weaknesses that can buck the national trend.

For instance, while the rest of Florida and the country were enjoying wild gains the past year, SW Florida did not.  This might be good news for SW Florida because if it’s determined later that the national market got a little ahead of itself, we may be insulated from losses as we did not participate in all those gains.  Lee County may have been a leading indicator.

Fundamentally it feels like a strong market nationally.  If it is fully priced, the future depends on affordability and what happens with jobs, income, and interest rates.  Price will move up or down depending on these other variables.

Locally, we’re subject to the same issues, and a few more.  Throw in a possible hurricane, red tide, blue green algae, etc. and you see we have some wild cards.  Personally, it feels like we too have a pretty good real estate market going right now.  And the red tide and algae will soon pass.  Because we didn’t participate in the big run-ups this past year, and because we have outside money that comes into SW Florida each season to invest in our market, we have potential for good times ahead.

The average Joe gets hurt the worst when the market shifts because outsiders price them out of the market.  Locally incomes only rise so much, and yet local buyers must compete with snowbirds and investors to buy the area’s most affordable properties.  It puts a strain on local buyers with limited income.

Regardless of what the national market does, Lee County has some really nice things going for it.  And the negatives that are here today may be gone in a few months.  We just need to see if sellers thinking of selling beat the interest rate hikes.  Those that sell now may be in a favorable position, even if the market only stalls.  It’s more fun to sell in a low inventory market than a neutral market.

Our website www.LeeCountyOnline.com has all the listings, and it’s updated instantly, so finding your SW Florida real estate bargain is a quick search away.  One of our happy Ellis Team agents will be happy to answer your questions.  To sell your home, call the Best Team in SW Florida. 239-489-4042. Ask for Brett or Sande Ellis Ext 4. And we’ll be happy to help you get Top Dollar and close in record time!

August 2018 SW Florida Real Estate Market Update

What Price Ranges Are Hot in SW Florida Real Estate?

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While pulling data for the latest monthly supply of inventory we noticed some increases in buying activity in certain price ranges.  Today we thought we’d bring you the latest monthly supply numbers and answer what price ranges are hot in SW Florida real estate market.

What Price Ranges Are Hot in SW Florida Real Estate

The overall months’ supply of homes on the market today stands at 4.2 months.  5.5 months’ supply is considered a balanced market, so overall, we’re in a seller’s market.  However, as we all know, there are segments in the market and supply changes by price range.

Obviously by looking at the chart, anything $250k or under is the sweet spot for this market.  However, anything up to $400k isn’t too bad either.  So where did we see a pickup in home sales since we last published this report?

What Price Ranges Are Hot in SW Florida Real Estate?

We saw a nice gain in sales in the $200-250 range.  For the past 365 days there were 2,177 sales compared to a rolling 365 day count back in April of 2,059.  That’s a pickup of 118 sales in a 3-month period.  The overall market saw a pickup of just 6 homes.  There were almost 19,000 home sales in the last 365 days, so 6 homes is almost dead-even.

The $300-$399k range saw a pickup of 87 homes, and the $400-$599k range saw a pickup of 86 homes.  So, if the overall market only picked up 6 homes, there had to be some drops.  The $100-$149k range saw the largest drop of 160 homes followed by the $100k or less of 108 homes.  Now, this isn’t necessarily a bad thing.  It means these homes graduated to higher prices and there were fewer homes available in those ranges.  The market didn’t suffer because as those homes graduated, we saw an increase in home sales into the prices ranges they graduated into.

What does all this tell us?  It tells us the market is segmented and you have to know your numbers.  Pricing is still important as to how aggressive you choose to be.  When you’re stretching it, you must market the home well, and be prepared to adjust if the market doesn’t respond.

Nationally, homes sales slipped month over month.  Interest rates are creeping up.  Rents are high in Southwest Florida which motivates buyers to purchase, however rising rates crimp their ability to pay.  We love a seller’s market that is close to balanced.  There are winners and losers in every transaction.

Getting to Win-Win

Many times, there are two winners, the buyer and seller.  The loser is the buyer who missed out because they weren’t ready.  Getting pre-approved before you offer helps so much, especially in a multi-offer situation.  Having an experienced agent who can help make your offer look the best to the seller helps too.

Remember this.  The buyer and seller are not in competition with each other.  Buyers are in competition with all the other buyers out there competing for the same supply of homes.  The sellers are in competition with all the other sellers out there for the interested buyers.  When you find a home you like, don’t screw it up.  Go get it.

Sellers, when you find a buyer that works, don’t screw it up either.  The best homes go fast, and the best buyers go fast.  You must ask yourself, am I willing to lose this transaction, because the next may not be as appealing to me as this one?

It Takes a Pro

It takes a strong real estate professional who knows the market and knows the numbers to properly help you make that decision.  If you’re thinking of buying, selling, or both, always call the Ellis Team at Keller Williams Realty.  We’ve been doing this awhile, and we’ve seen a few things.  We can help make the difference for you!

Feel free to search the MLS, or find out what your homes is worth online for free at www.LeeCountyOnline.com  Or call us at 239-489-4042  We’re glad to help!

Ellis Team voted best real estate team in SW Florida News Press Readers Poll
Brett and Sande Ellis Voted Best Real Estate Team in SW Florida

Ellis Team Voted Best Real Estate Team in SW Florida by News Press Readers

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