Average sales prices rose 20.4% in Lee County while median sales prices rose 14.0% in October over last year’s numbers. This tells us there is some strength in the higher end of the market pulling the average figures higher.
If we dig a little deeper we notice that average sales prices don’t usually bump up until December. In 2015 we started seeing the climb in September, about 2 months earlier. The average numbers are a little more pronounced and help identify the trend in the median numbers when they occur over time.
SW Florida Real Estate Prices Rise as Does Inventory
We’ve also been telling readers that listing inventory has been down, and this has led to a rise in prices. We know from history that inventory begins rising about October, and this year kept the trend.
Listings rose over September 8.13%, however they fell 10.3% from last year’s numbers. So we’re seeing the typical rise in inventory we usually see this time of year, however the bar is lower and listings are down from last year.
What does this tell us? The SW Florida real estate market should be in for a good ride. Of course, this is predicated upon interest rates remaining affordable and the job market remaining stable. All signs point to both. Interest rates will climb, but forecasts by FNMA and Freddie Mac suggest modest rises.
Rising rates will affect some home buyers, but it shouldn’t disrupt the market as we have more demand than supply. Rising rates will hurt individual buyers more than sellers overall. If we had a high inventory market, it would affect sellers more.
Rising rates will help curtail 20% rises in prices. It may not change the direction but it may slow the speed of increase.
We think season should be good again this year. The weather is already brutal and we haven’t even touched December yet. SW Florida has enjoyed rather warm weather and that is attractive to buyers who’ve just about had it with snow and blizzards. This winter could be the straw that breaks the camel’s back and sends people our way.
Sellers, this could be your time. All signs point to a perfect time to sell. Low inventory and rising prices combined with a decent economy spells success. It’s the perfect storm, but perfect storms don’t last forever. Yes, we expect a good market going forward, but one day you won’t be holding All the cards, just some of the cards.
It’s always fun to play cards when you’re holding all the good ones. It really comes down to skill when the cards are evenly distributed, and it’s no fun at all when you’ve got no cards. Buyers feel like they have no cards right now. If they wait, they’ll have better cards but prices and rates may both be higher, so waiting isn’t the best option.
Sellers may wait, and prices may be higher. But it may take longer to sell and buyers will have more choices. Your home won’t be the commodity it is now. Really, we can honestly say that now is a good time for both buyers and sellers. Waiting may cost buyers more money due to rising rates. The banks keep that money, not the sellers. And if a seller waits, they may not enjoy the fruits of having little to no competition.
If you’d like to search the MLS, feel free at www.LeeCountyOnline.com Our database is updated every 5 minutes, so you can beat out other buyers to hot new listings.
Sellers, if you’d like to take advantage of this Hot market, call us at 239-489-4042. Put our marketing and “Secret Sauce” to work for you. We can even help you find your next home. Call us and let’s talk.
Good luck and Happy House Hunting!
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