Back in February we posted real estate inventory levels for SW Florida and reported a fairly stable inventory market. Back in January the market was strong, but since then agents have complained about a shift in the market. Properties are selling. We’ve got a great market, however there have been some changes the last few months so we’ll bring you up to speed.
SW Florida Post Season Real Estate Inventory Levels April 2016
Almost all categories have increased in the past few months with 2 exceptions. The below $50,000 range and the $400,000-$600,000 range. The change below $50,000 is so small and there are so few properties involved it’s not worth talking about. The $400-600k range is a bright spot. Active listings went down in this range and closed sales have increased.
In the past year we’ve had 1,254 sales in the $400-600k range. Back in February we only had 1,093, so that’s helped lead to a decrease in supply of inventory. There were 1,271 on the market back in February and 1,206 now, so most of the change has to do with increased sales.
Overall the market has increased to a 5.84 months supply, up from 5.03. The change in sales won’t look as dramatic as month over month sales data from last year because it’s average over the last 365 days, but this is a fairly significant swing given the 2 month window.
At close to 6 month supply I’d say we have a pretty balanced market. If your home is on the market over $400,000 you’re looking at a year plus to sell your home on average, unless you take steps to win the selling game.
Remember, your home is in competition with all the other homes for sale. You’re not really in competition with the buyer. The buyers will look at all options and decide on what is best for them. The goal is to make your home valuable in the marketplace. Obviously your home has value. The question is, does it have as much value to the buyer as it does to you?
When the sellers set the price equal to its value, it will sell. If a home has a value to the seller at $1 Million dollars but has value to buyers at $500,000, it will not sell. This is one reason you see so many professional athletes retire. Perhaps they see their value at $5/million/yr. Ball teams see value in them too, but the athlete is getting older, susceptible to injury, and not the team’s future. They may be willing to pay $1.8 million for one year and the athlete is holding to $10 million over 2 years. When the value is not equal to the price, there is no market for the athlete and they retire.
Some star athletes are trouble makers and have issues. Perhaps they’re a $10 million/yr player, but because they have baggage and potential to affect other players, teams won’t take a chance on them. At a lower price, somebody will take a chance no matter how many issues you have.
Right now there isn’t a high market for Johnny Football. Even his agents have dropped him. He has baggage and needs to deal with his issues. If he had no issues he’d be worth a lot more.
The same is true in real estate. The market changes monthly, and just because you feel your home is worth X doesn’t mean the buyers will. I can assure you though, when your price equals the value in the market, it will sell, even if your home has issues. The more you deal with the issues upfront the more value your home will have.
If you’d like to search the market visit www.LeeCountyOnline.com. If you’d like to talk to a professional agent about how to maximize your value, call the super agents on the Ellis Team 239-489-4042. If you’re a Star athlete, we can’t represent you with ball teams, but we can help you find the perfect home.
Good luck and Happy House Hunting!
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