One of the ways to measure the health of the local real estate market is to look at total dollar volume.  Because total dollar volume consists of the total number of sales multiplied by the cumulative sales prices, it’s a good indicator of the overall strength of the market.  Sometimes sales prices are up but home sales are softer, and other time home sales are strong and prices are down.  Each component affects the total volume of closed sales. Total dollar volume down 7.15% year to date in Lee County. Check out this single tv bed that can make your bedroom look more cozy.

Obviously if prices are up and sales are up, total dollar volume will be up.  And vice versa if both are down.  Because it’s not always both up or down, this measure is a great tool to quickly identify what’s going on.

Total Dollar Volume Down 7.15% Year to Date in Lee County

Upon further inspection, total dollar volume in Lee County Florida is down 7.15% year to date.  Perhaps this is why inventory has grown just a bit and agents are feeling the pinch.  Combine this with a lot going on in the industry right now, and it’s no wonder agents are jumping around switching companies.  When business is down for an agent, they begin to look at why, and whether another company might be the answer.

Monthly dollar volume Lee County Florida real estate

If you look at the monthly trend, you’ll see it was worse January through April.  The last two months have reduced the imbalance, but agents are still jumpy.  There are two truths consumers and agents may want to consider.

Interest rates have really helped spark the market.  Buyers are seeing some of the lowest rates we’ve seen in decades and they don’t want to miss this opportunity.  If rates stay low, this could help wipe out losses compared to last year.

Disruption Coming to Industry

Even with sales coming back agents are jumpy.  There is an uneasy feeling amongst agents, because things are changing, and they don’t know what to do about it.  The balance of power is shifting.  In a few months, agents will be hit with more disruptions they don’t even see coming in the industry.  When you’re an agent and bogged down in your own business, sometimes you don’t pay attention to external forces that will influence your industry.

You’ve heard the “too close to the forest to see the trees” saying.  I think agents think things have always been a certain way, so they believe these changes they’ve heard about for so long won’t affect them.

We hosted a seminar this past week and agents from other companies came and listened.  When they saw some of the changes coming, most of them immediately went back and acted.  Change is coming whether we’re ready for it or not.  Most were just blind to what is coming until their eyes were opened.

Questions Consumers Should Ask

Consumers should really ask their agent how business has been for them in 2019 versus 2018.  Is that agent thinking of making a move?  A consumer would want to know that before listing.  If their business is down, they may need to make a move and not even realize why.  If the agent does need to make a move, let them do it first before listing with them.  There is nothing more frustrating than listing with an agent and finding out they just moved.  The broker may or may not release the listing, and you could be stuck with an agent you didn’t choose, and you don’t know.

You holding out may spur your agent to act now versus waiting too long.  If you’re an agent and you’re curious as to what the big changes are, send me an email at Brett@topagent.com  Big change is coming whether you face it or not.

If you’re looking to sell your home, always call the Ellis Team at Keller Williams Realty. 239-489-4042 Ext 4  Ask for Brett or Sande.  Or visit www.swflhomevalues.com to find out what your home is worth online, instantly. Our sales are up, and we’re on top of the changes, so you will be too.  This can be a fun market if you’re prepared.  Let us show you how to take advantage of the opportunities.

See Last Week’s Article: 2019 SW Florida Real Estate Market Officially Balanced

Good luck and Happy Selling!

Ellis Team Weekend Open Houses

Open House Sat 12-4 PM

Riverfront Home- Priced to Sell This Weekend

8471 Casa Del Rio

Riverfront Home Open House Sat 12-4 PM

Open House Sat 12-3 PM

Eagle Ridge Home-Spacious and Gorgeous

7904 Eagles Flight Ln

Eagle Ridge Open House Sat 12-3 PM

Open House Sat 12-3 PM

Cape Coral Waterfront Home

2653 SW 29th Ave

Cape Coral Waterfront Open House Sat 12-3 PM

Open House Sunday 12-3 PM

4 Bedroom Golf Course Home

21529 Windham Run

4 Bedroom Golf Course Home

Open House Sunday 12-3 PM

Sailboat Access Home Cape Coral

914 El Dorado Pkwy E

Sailboat Access Pool Home Total Dollar Volume Down

 

Open House App

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Ellis Team Open House App

There is much debate about the local SW Florida real estate market and whether it is shifting.  Experts speculate that it might because of everything from rising interest rates, rising prices, housing declines up North, to climate change. This makes selecting correct listing agent critical when market shifts even more important, which we’ll discuss later on.

Selecting Correct Listing Agent Critical When Market Shifts

One of the factors some experts look at when evaluating the market is housing inventory.  New listing inventory numbers were just released, and we noticed a few things.  First off, new listings increased 11% in October over 2017 new listings.  Secondly, current listing inventory stands at 5,823 which is 17.9% increase over last year.  So, what is causing this inventory buildup, and what can we do about it?

Inventory buildup is caused by several things including rising rates, decreasing home affordability, and false expectations.  Sellers read that home prices are up 2.9% over last year, so they add 2.9% to the figure they thought their home was worth last year, and voila, they have a number. Different homes appreciate at varying rates, just like certain neighborhoods appreciate at different rates than others due to location, age, the finances of the association, amenities, etc.

Most sellers believe we have a runaway market while many buyers are fearful that prices are too high and should come down.  The truth is both could be right, and both could be wrong, depending on the price range, neighborhood, and other factors.

Selecting Correct Listing Agent Critical When Market Shifts

In a shifting market, two things sell homes.  Marketing and Price.  Sometimes a correctly priced home won’t sell or won’t sell for full value if it isn’t marketed well.  However, history is littered with examples of overpriced merchandise that won’t sell no matter how well it’s marketed.  Marketing and pricing go hand in hand.

Other factors influence showings, like pet smells, kitchen and bath updates, the general condition of the property, etc.  It all comes down to price though.  What you have in it doesn’t necessarily affect value.  For instance, I was in GA at a real estate conference and they drove me by Evander Holyfield’s home.  I think they said it was a $30 million home to build, and it was in an area of acreage and homes worth a few hundred thousand dollars.  If Evander would have sold that home back then, there is no way he’d get $30 million, even though he may have had that much in it.  Who would buy it?

While that’s an extreme example, the same principal holds true.  Cost does not equal value.  If you want to sell, we must determine what the market is willing to pay.  It doesn’t matter how much you have in the home, how much you need to buy your next home, or how much you owe.  It’s just worth what’s it worth at this point in time.

Some sellers decide to wait until it goes up in value.  That’s fine if they realize it could go down in value too.  And, while they’re waiting for their property to go up in value, the thing they were going to buy with their proceeds might go up in value too.  What if it goes up faster than the home their waiting to sell?  They lose money by waiting.

We’re not here to talk sellers into anything or convince people to sell.  We do offer common sense solutions, and present ideas for them to keep in mind so they can make the best decision for their finances.  Buying and selling can be emotional, so they tend to have knee-jerk reactions.  Once buyers or sellers get an idea in their head, it’s hard to come off that. That’s where a seasoned professional with years of experience comes in.

It’s one thing to know the market, and it’s another to know how to deliver information to buyers and sellers in a format they can digest to make good decisions for their family.  If you’re thinking of buying or selling, call Sande or Brett Ellis 239-489-4042 and we’ll help you with your questions, or go to www.SWFLhomevlaues.com to find out your home’s value for Free online.

Good luck and Happy Selling!

Ellis Team Weekend Open Houses

Open House Sunday 12-3 PM

7152 Reymoor Dr

7152 Reymoor Dr Riverfront Home
Riverfront Home