The Southwest Florida real estate inventory supply increases in the 4th qtr. All price ranges except two increased with the most pronounced increases occurring in the $400,000 and up range.
In December, the $400k-600k range shot up almost 2 months from 9.34 months in September to 11.15 months currently. The $600k-$1 Million shot up from 12.57 months to 14.69 currently. That’s over a 2 month jump. The biggest jump occurred in the $1 Million+ range where there was a 17.03 month supply back in September. Today that number stands at 21.04 months. That’s almost a 4 month jump in supply just since September.
Southwest Florida Real Estate Inventory Supply Increases
It pays to know where your home stands in the supply chain. It tells you how aggressive you must be when selling your home. The overall market stands at 5.65 months which is a healthy number. People read headlines and hear there is a 5.65 month supply, so homes must be selling fast. They figure with homes selling so fast it’s probably easy to stick a sign in the yard and sell it.
Even at the lower price ranges there are still many homes that do not sell, because they are over-priced. If they were priced correctly and properly marketed, they would sell. The demand is there, at the correct price.
As we go higher in price the demand is still there, it’s just that the supply is even greater. Recently more homes are coming to the market than are selling, hence why we have increasing supply. We can’t look at the overall market and assume all homes are selling the exact same. Just as we can’t assume that all cities in Florida are behaving the exact same. Real estate is local, and it is segmented.
Certain cities or neighborhoods sell better than others. This can be due to economic factors, or perhaps location. The closer to beaches, or top schools can affect values.
Lee County is getting ready to change how children are selected for schools starting in 2018. This may put an end to the zoned system and busing system as we know it. Children will go to schools closer to where they live, and this could affect values.
Segments also affect the market. Sometimes the low end is red-hot, and other times the mid to upper markets make a comeback. Generally speaking, the lower the price the greater the demand as more people can afford lower prices. Not everyone can afford high-end real estate. Just because Southwest Florida Real Estate Inventory Supply Increases in some price ranges doesn’t mean it increases for all ranges. In fact, a few decreased.
Right now we have an affordable housing crunch in Southwest Florida. Rents are high, and so are median sales prices relative to what the average working person can afford. It makes it difficult to find housing close to where you work. We saw this back in the housing boom too. This doesn’t mean our market is over-inflated. It just means there is a cap to how much more and how fast it can rise until incomes pick up.
The big price gains may be over, unless the economy comes roaring back. Our US economy has essentially had free money for the past 8 years and it’s done nothing except help the stock market. If jobs and economic activity return like it’s believed they will post-election, our real estate market could be in for more good times. If nothing changes, we could be in for flat to modest gains.
We think 2017 is going to be a year of change. Home sales may pick up even though rates will continue to rise. Proper pricing and aggressive marketing will become even more important, and the people who act quickest will save the most money when rates rise.
You can search the MLS for Free at www.LeeCountyOnline.com. Our database has all the homes, and it’s updated every 5 minutes directly from the MLS. It will even notify you of new homes or price changes if you save your search. You can always call us at 239-489-4042 and we’ll be happy to discuss your buying or selling options.
Good luck and Happy House Hunting!
December 2016 Ellis Team Seller’s Club Report
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