One of the ways we measure health of the real estate market is to measure the real estate total dollar volume of sales. We get this by multiplying the number of sales by the average sales prices. The reason this figure is important is because it quickly tells us so much. We know that Lee County Florida real estate total dollar volume was up again in 2019, beating all the past 5 previous years.
Real Estate Total Dollar Volume Up
The average sales price was down 1.7% for the year while the median sales price was up 3.0% The reason the real estate total dollar volume is up is because sales climbed 3.4% for the year. Even though the average price fell, we made up for it by increased sales.
We started to see sales prices rising at the end of 2019, so the 1.7% drop in average price is the average for the entire year. Inventory fell 16.5% in 2019. Combining lower inventory with lower interest rates, we’ve got a recipe for potential price increases. It’s a classic supply vs. demand with a little bit of affordability mixed in the formula which equals rising price potential.
Mortgage applications rose this past week as well, which is a sign that consumers are jumping on these low rates. Many are new purchase applications, and some are refinance applications. We’re seeing more people in SW Florida considering their options. They’ve been locked in their homes for quite awhile and they’re wondering if now might be the time to make a move. They’ve finally gained enough equity, either through paying own their mortgage or rising home values, or both.
The trickiest part is finding the next home to move into while there are low inventory levels. That’s where we can help. We’ve helped people find new construction they weren’t aware of, which is sort of like invisible inventory. The other thing we have is a new App that is making the home search process more fun.
New Consumer Experience App
You’ll be hearing more about this new app very soon. We believe it will make shopping for real estate fun and be the best consumer experience you’ve seen. It will reshape the industry. To do that, it must be a game changer. This weekend I’m out in Dallas at our national convention where we expect it’ll be released. If you’d like a VIP invite to check it out, send me an email to Brett@topagent.com with message line Consumer App. I’m going to make sure News Press readers and our Blog readers get first access to this cool new technology. The best part is, it works nationwide too, so if you’re visiting here from somewhere else, you can use it for back home too.
2020 will be an interesting year to watch. Sometimes election years can be funky as consumer confidence is held in the balance, but that doesn’t seem to be the case this year. Americans seem confident in the direction of the economy. The job outlook is bright, interest rates are low, and people’s retirement plans are doing well. The stock market is on fire. All systems seem to be go. Trade deals are going our way which sets up well for the economy of the future.
Prices are almost back to where they were in 2005. The difference is we have end users for our homes. Back then we had speculation and flippers without end users. The inventory was built for future demand. Today we don’t have enough inventory, so it’s a totally different market, and the risks that were present back in 2005 are not here today.
2020 is All About the Consumer
We feel good about the local real estate market and its direction. We feel good about the consumer experience we’re bringing to the market. 2020 will be an exciting year on many levels, both for the consumer and for agents that disrupt the status quo. The Ellis Team looks forward to disrupting the status quo. Email us if you’d like a first access to our new consumer experience. If you have a home to sell, call Sande or Brett Ellis at 239-489-4042 Ext 4
Good luck and Happy House Hunting!
See Last Week’s Article “Lee County Home Prices Almost Back to Record Prices”
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