Tag Archives: SW Florida real estate market

SW Florida Real Estate Prices Rise as Does Inventory

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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.

SW Florida Real Estate Prices Rise as Does Inventory

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.

SW Florida Real Estate Prices Rise as Does Inventory

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!

Featured New Listing of the Week-

Danforth Lakes Pool Home 5 Bedrooms 3 Baths
Danforth lakes Pool Home

5 Bedroom 3 Bath Pool Home in Danforth Lakes

 

Has the SW Florida Real Estate Market Run Out of Steam?

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Nationally I’ve been reading stories about writers concern there may be another housing bubble forming.  Anytime prices rise people wonder when it will peak, and anytime prices fall people wonder when it will bottom.  It’s just human nature. So the question is, has the SW Florida real estate market run out of stem?

SW Florida Real Estate Market Sales Prices 2015

Latest national statistics released this week show pending sales up 3.1% despite colder weather up North.  With an improving economy and still historic low interest rates it would be hard to argue the market could cool off.

Another report suggests home prices are outpacing wages which could damper prices.  This is true.  Sometimes home prices rise faster on low supply, and when this rise outpaces wages eventually this can slow price growth until wages catch back up.  It’s not totally a supply/demand market as other economic forces will limit prices beyond simply supply.

As you can see from the attached chart, locally our prices have more than doubled in the past 4 years.  SW Florida has been on a good run, so naturally people may wonder if there is a bubble forming locally as well.

The good news is we don’t think so.  Are 25% price gains year after year sustainable?  That answer is no.  February 2015 median sales prices were up 6.5% over 2014.  That is sustainable.  Traditionally average annual price gains have been 3-5%.

It’s quite natural our prices have doubled because really they fell too far and too fast in the bust.  That was an over-reaction due to a banking crisis and banks dumping assets on the market.

Banks are lending again and they no longer have the properties to dump on the market.  Prices fell below replacement cost which means they were artificially too low.  We think prices are back to a healthy balance between replacement value, supply, demand, and economic conditions.

The future looks better for SW Florida than does the rest of the country.  The US economy is growing again and that’s good news for everyone but it isn’t growing at the pace it should be.  By all accounts Florida is, and SW Florida is leading the way.

We have below state and national unemployment averages.  Our weather and lifestyle is an alluring attraction to employers and employees alike.

Home building is back which will add jobs to our area.  All signs point to a good economic climate in Florida for the foreseeable future.  The prognosis may be for measured, sustainable gains which are always preferable.

Season was busy.  Have you noticed traffic has lightened up substantially this past week?  We’ll be watching March sales numbers when they’re released later in April.  We think they’ll be pretty decent.

All eyes locally turn to the next few months.  We’ll be watching pending sales in April and May and this will give us a pretty god sign of what 2015 will bring.  So far it’s been a good season, but we have noticed a few buyers showing indifference this year compared to years past.  This is always the case, but there is a general feeling amongst some buyers that the big gains are over and our market is back to fully priced.

Nobody is afraid prices could go backwards, but they’re not afraid prices will be 50% higher in 2 years either.  It’s causing pause and normalcy, even in a low inventory market.

If you’re a seller and you’ve been waiting, now may be a good time to sell.  Our prices are up and we don’t have inventory, Yet!  That could change one day when our market flattens out, whenever that day is.  We don’t have that crystal ball.  We just feel it’s more likely to flatten than go up or down substantially.  Better yet, let’s just keep the truck rolling at normal sustainable gains and call it a day!

Call us to sell your home. 239-489-4042  Feel free to search the MLS at www.Topagent.com

 

Bella Casa Closeout Event
Bella Casa Luxury Condominiums Fort Myers, FL

Don’t forget April is the Bella Casa Luxury Condo Closeout Event. Call to get a great deal and be sure to check out the resort style pool, tennis court, clubhouse.  Best of all Condo fees are only $220/mo and no CDD

Year End Sales Numbers for SW Florida Real Estate Market

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2014 was another banner year by all accounts.  Year end sales numbers for SW Florida real estate market indicate a recovering market in 2014.  This makes several years in a row of double-digit or near double-digit gains.

For the record the official numbers suggest a 8.6% increase in median single family home sale prices in 2014, up from $174,000 in 2013 to $189,000 this past year.

Year End Sales Numbers for SW Florida Real Estate Market

Year End Sales Numbers for SW Florida Real Estate Market

Average sale prices rose 8.1% to $283,529.  Year end sales numbers for SW Florida real estate market are the median of the entire year and not necessarily the final December statistics.  One month sales figures can be deceiving and seasonal, so we take the entire year.

Active inventory fell 12.6% for the year, with inventory currently at 5,394 compared to 6,169 last year.  All year we’ve been telling readers we’re in a low inventory market.  Inventory has been rising the past few months but we’re still down significantly from last year.  Inventory always rises heading into season and typically peaks out in late January or sometime in February.  It’s hard to keep inventory when the sales begin popping in season.

SW Florida Real Estate Current Active Inventory January 2015

Each year we tell our sellers sales can be quiet up until about Jan 15-20, and then all heck breaks loose.  Our team has noticed a definite uptick in buyer calls.  2015 season looks to be on par with previous years.  We’re getting some good listing calls too.

We’re going to need some good listings at the rate these buyer calls are coming in.  I spoke with an agent this week at another firm who had an open house this past weekend and 25 customers came in.  Her business is picking up this week and she can’t keep up.

We’re doing an open house tour this week in Cape Coral.  We’ll have 3 homes open on Sunday.  We do our open houses a little bit different so buyers can see several like kind homes.  2 are direct access waterfront homes and the 3rd is located on a fresh water lake with gorgeous views.  Check out our ad in the News Press HomeFinder for times and locations.

If you look at the Year End Prices graph you can see where were are in the recovery process compared to the peak in 2005.  We’ve got some ways to go before we reach that plateau.  If you look closely you can see the price rise in 2014 slowed just a bit.  Nobody can say with certainty what prices will be next year.

All I know is last year we predicted another year of gains, and we should have more gains this year as most signs look good going forward.  The rate of gain may slow, and that is a good thing.  It’s unhealthy to have double digit gains year after year.  Average gains are usually 3-5% per year and we’ve been beating that.

Rising interest rates usually temper buyer buying ability.  Sometimes it spurs more activity from buyers who want to get in at lower costs.  We’ll keep our eyes on interest rates in 2015 along with some other key variables.

In the meantime, enjoy this wonderful market.  If you’re a seller, now is the time to call the Ellis Team 239-489-4042  If you’d like to search the MLS, check out www.TopAgent.com  You can search the entire MLS, or feel free to speak with one of our friendly agents.  Be sure to read all our market updates on our Blog which can be found on our website.

Read last Week’s Article Bella Casa Luxury Condos in South Fort Myers

Good luck and Happy House Hunting!

Check out Bella Casa Condominiums.  We’ll be happy to show you this project in South Fort Myers

Ellis Team

Fort Myers Real Estate Agent

7910 Summerlin Lakes Dr

Fort Myers, FL 33907

239-489-4042

Bella Casa Luxury Condos in South Fort Myers

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A few weeks ago we focused on gated communities in Fort Myers.  This week we thought we’d focus on new construction condos in South Fort Myers.

Bella Casa luxury condos in South Fort Myers

Bella Casa Luxury Condos in South Fort Myers

We did a search in MLS for new builder product and 24 properties came up.  The lowest priced listing we could find was in Bella Casa for $137,000.  In fact we have a listing in Bella Casa for $134,716 and 2 bedroom 2 bath unit at $155,778.

Bella Casa is a gated community in South Fort Myers with a resort style pool and spa, state of the art fitness center, clubhouse with club room and an outdoor living room under truss with a two sided fireplace and lighted tennis courts.  The best part might just be the low maintenance fees of only $213/mo which makes Bella Casa affordable.

Located on Plantation Rd off Daniels, it is close to Gulf Coast Hospital, Minnesota Twins Spring Training and the Lee County Sports Complex, shopping, airport, and US 41 and I-75.  The builder has 36 units left for sale.  There are some rented units for investors too who would like to purchase a condo with low fees and built-in income.

What makes Bella Casa luxury condos so unusual in today’s market is the combination of newer construction, garages, gated community with amenities, and low maintenance fees in South fort Myers.  Typically a community might offer one or more of these features, but rarely all of them.

Bella Casa Luxury Condos in South Fort Myers Aerial View

Bella Casa luxury condos offers 1 Bedroom, 2 bedroom, and 3 bedroom units. Many have lake or preserve views.  For more information call our office at 239-489-4042 or visit our website at Topagent.com

Bella Casa Condominiums in Fort Myers is a saved search on our website which makes it easy for you to see what’s available in MLS.  Did you know that you can search for a home or condo in MLS directly from our website?  You can, and we make it easy.  Virtually every property in MLS can be viewed on our website at Topagent.com  Keep in mind not all new construction is listed in MLS, so that’s why our team works hard to keep up on inventory.

It’s quite possible the home you’re looking for is under construction and not in MLS at the moment.  The Ellis Team has a team of buyer specialists devoted to keeping up on the market and listening to your needs.  Quite often we listen and match buyers up with properties they didn’t even know were on the market.

As leaders in the SW Florida real estate market we try to find out about opportunities first, and we work hard to keep up with the changes.  Because we work with a lot of buyers our specialists are out there regularly visiting projects so when you call we may have some ideas for you worth checking out.

Take Bella Casa luxury condos for instance.  There may be 4 new construction units on the MLS and a few re-sales and yet active Realtors know the developer has models open daily and more to choose from, but they’re going fast.

We hope you enjoy reading about communities we’ve focused on recently like Bella Casa luxury condos and Reflection Lakes.  If you have a community you feel has a lot to offer let us know and maybe we’ll write about it.

Good luck and Happy House Hunting!

Check out Bella Casa Condominiums.  We’ll be happy to show you this project in South Fort Myers

Ellis Team

Fort Myers Real Estate Agent

7910 Summerlin Lakes Dr

Fort Myers, FL 33907

239-489-4042

SW Florida Real Estate Market Shows Healthy Signs

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August Home Sales Report Shows SW Florida Real Estate Market is Healthy

Initial August home sales numbers were just released by Florida Realtors and it reveals some encouraging yet predictable figures.

SW Florida Real Estate Market Shows Healthy Signs

Single family home sales in Lee County Florida showed a median price increase of 10.6% over last year to $182,500, while the average sales price was up 6.3% to $261,011 The median price was up from July $179,900.  If you’ll notice last year prices began rising again in August as well. There is seasonality in the SW Florida real estate market and the graphs help illustrate how this works.

Listing inventory is also down this year with only 4,890 single family homes on the market.  Last year there were 4,997 so inventory is going down.  You can see from the total inventory graph that there is always a dip in inventory this time of year.

SW Florida Listing Inventory

Making predictions is easy if you have lots of historical data to look at and graphs.  We always have to look at external factors that could influence the market going forward and combine that with market data.  If no new external forces were influencing the market, where would you predict inventory levels in a few months?

If you predict inventory levels to rise, there’s a good chance you’ll be correct based upon the last 3 years of data.  If we provided a price graph you’d see prices begin escalating after September as well, so going forward we could have rising inventory and rising prices.

Let’s look at external forces that could influence the market.  The Feds could increase interest rates which has a negative effect on buyer’s purchasing power.  This could happen in the next 12 months.

We have elections coming up in November.  Depending on how they turn out could affect consumer sentiment about the economy going forward.

The war on terrorism, along with hot spots in Ukraine, Iran, Syria, Iraq, Libya, and elsewhere could affect the world economy and impact us here someday.

Locally we’re expecting an announcement regarding a company relocating to SW Florida.  It is dubbed Project Orange and the announcement should come in the next 12 months.  Should they choose Lee County we hear Bonita Springs is the likely winner.  This could positively impact Southern Lee County and Northern Collier County, however landing a company with jobs helps the entire area really.

Builders will be bringing more inventory to SW Florida in a few months, and we need it.  Buying new construction is complicated.  It’s hard to know who has the best deal and what incentives are being offered.  Hooking up with a top Realtor in the area can save you big and Realtors can offer guidance on what areas are hot and what amenities future buyers are looking for.  Purchasing in the best area for you can help secure your financial future down the road.

Good Realtors know what to stay away from and what will be hard to resell later on, so having a Realtor with you when you purchase is critical.  You don’t pay extra from a builder to have a Realtor, but not having one can cost you thousands. We know which builders and which communities have product coming and when, so give us a call if you’re in the market for a home and can’t find it on the resale market.

We also have some great resale homes coming to the market. If you’re looking for a certain home or neighborhood, our buyer specialists can guide you and may know of something that fits your needs.  If not, we can be on the lookout for you and notify you if a match hits the market.  The market is picking up and new listings sell very fast, so don’t waste time if you have a need.  Call us at 239-489-4042

Good luck and Happy House Hunting!

To view our Listings in Hi Definition, visit www.HomesinHD.TV or click on our playlist below

Ellis Team

Fort Myers Real Estate Agent

7910 Summerlin Lakes Dr

Fort Myers, FL 33907

239-489-4042

SW Florida CyberStar Attending Conference on Real Estate Change

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Real estate has always been an industry that has adopted change.  Real estate agents by their very nature are some of the early pioneers to adopt technology.  Agents typically have an entrepreneurial spirit and are always looking for ways to make their marketing stand out. Agents are risk takers, because you have to invest so much of your time, energy, and money trying new things to make it in this business.  Owners really have little idea how much Realtors spend on various advertising or technology platforms in hopes of finding better ways to sell homes.

SW Florida CyberStar Attending Conference on Real Estate Change

SW Florida CyberStar Attending Conference on Real Estate Change

This is why we are traveling to Las Vegas in September.  I will be attending and speaking at the CyberStars annual convention.  The CyberStars are a network of 225+ top technology-oriented real estate professionals from the U.S., Canada and Australia. Their purpose is to share ideas, tips and techniques with each other, to conduct information-sharing sessions at various state, national and franchise conventions and to benefit from numerous referrals sent within the CyberStars® network.

The Ellis Team has attended CyberStars conventions for years and brought back some of the most exciting marketing ideas the SW Florida real estate market has ever seen.  While the Cyberstars are one of the best groups, there are others, and we highly encourage agents to attend events and bring back ideas.  It makes us all better.

Years ago we had a slogan that said we were the most copied team in real estate.  That’s probably true as we introduce ideas to the market and other agents copy them.  We always felt we could innovate faster than others could copy, and most agents won’t or can’t copy everything you do anyway.

The truth is, some of these ideas we’ve copied from other agents nationwide.  If an idea is successful and helps sell homes, chances are others are going to try it too.  If it works in one market, it’ll probably work in another.

It’s also important to stay on top of emerging trends and discuss their implications with other top producing agents who are dealing with the same thing.  There are some looming changes on the horizon and we look forward to exchanging thoughts on how we’re going to deal with them.

Among the changes we see coming are further Dodd-Frank rules and regulations affecting lending.  Companies are also deliberating on the value of sending listing data to portals that assemble that data and sell back to agents and companies.  If that data isn’t accurate and up to date, why are agents buying back data that is created at the MLS level anyway?

The closing process is changing.  Recently RE/MAX Realty Group switched to a system called Dot Loop whereby everything is paperless.  We really love it.  Contracts can be created and digitally signed online now, and the entire sales and closing process has sped up and been more efficient.

We’ve also joined a new referral system for top agents around the world called Agent Bridge. This system was developed by a top producing agent we know in CA and does some things other referral systems cannot.  We’ve already placed some referrals with this system so it’s benefiting our clients from day 1.

In a month or so we’ll report back on what we learn at the convention.  Rest assured, if there’s a new and exciting technology or idea, we’re going to look into it.  Not every new idea works.  We’ve tried several over the years, so we’re selective.  We’re also excited about some of the new changes coming to the industry, and we think you will be too when you see them.

Good luck and happy buying/selling!

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SW Florida Real Estate Market is an Inventory Driven Market

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New sales numbers are out for the SW Florida real estate market and we’ve been pouring over the numbers and we’ve come to the conclusion that sales are directly related to the amount of inventory on hand.  We can’t sell what we don’t have, and if we had more we could sell more.

Perhaps a better headline would be sales are directly related to the amount of fairly priced homes on the market.  In any market, up, down, or sideways, there are always fairly priced homes and overpriced homes.  The fairly priced homes sell in any market, and the overpriced homes fail to sell in any market.

SW Florida real estate market Fort Myers Cape Coral real estate median days on market
Median Days on Market by Price Range

SW Florida Real Estate Market Update

The median sales price fell in May to $195,000 from $200,000 in April, but it is up 10.6% over May 2013 levels.  Inventory rose slightly to 5,540 listings which was up 6.3% over last year.  Each month new listings come to the market and some are selling, and some are not. Pending inventory fell 10.9% from last year, so we’ll keep an eye on inventory rising and pending inventory declining in the coming months.

I’d like you to look at the two charts provided. They may look confusing but it’s really not. One is the median days on the market by price range and the other is the months supply of inventory chart.  The difference is the months supply of inventory takes into account all single family listings to give you an idea of how much is on the market.

SW Florida real estate market Months Supply of Inventory
Months Supply of Inventory Chart

The median days on the market by sales price chart only looks at homes that actually sold, not all listings.  These are the listings that have won the home selling game.  If priced correctly, a home will sell, and these homes did.  In other words, if a home is going to sell, these are the median average times it will take.  If you have a home on the market you can lookup what price range you’re in and see the median time.  If your home is over the median time, perhaps your home is overpriced and isn’t going to sell.

That’s a tough pill to swallow when you read headlines that say the market is improving, and there are multiple offers on many properties.  This is all true.  However, there aren’t multiple offers on all properties.  And some properties receive no offers.

It doesn’t matter how good the market is, nor how much marketing your Realtor throws at your property.  If it’s overpriced, it’s not going to sell.

Cash sales have fallen to 52% of all sales, and this time of year they typically fall further.  Financed sales must appraise, and we have seen some appraisal issues on properties lately.

If your home isn’t selling, it’s time to have a conversation with your Realtor about proper pricing. The seller may set the price, but the market determines the value.  If your home is over the market, then it’s not really on the market.  If you wish to sell you’ve got to price your home at or close to where the market is.  Some sellers don’t really care if they sell, so they continually keep their home over the market and if a buyer comes along and pays more than market, they’ll sell.  We’ve all seen these listings. They just linger on the market and make all the fairly priced homes look good. They get fewer showings and few offers, because serious buyers offer on fairly priced homes first.  They don’t waste time offering low on overpriced listings.  Buyers go for value, and overpriced listings don’t offer value.

This is probably the biggest mistake we see sellers make.  They assume buyers can always make an offer, but they don’t.  Many times the overpriced home is invisible to the buyer because it’s over where they’re looking.

We don’t suggest under pricing your home.  Just price it fairly and you’ll be glad you did.  Good luck and Happy Selling!

To view our Listings in Hi Definition, visit www.HomesinHD.TV or click on our playlist below

Fort Myers Real Estate Agent

7910 Summerlin Lakes Dr

Fort Myers, FL 33907

View Cape Coral Homes For Sale $900,000-$1,000,000

Late Season in 2014 For Fort Myers and Cape Coral Real Estate Market

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Season felt like it was good but statistically the numbers weren’t coming in like they usually do in the Fort Myers and Cape Coral real estate market.  February and March sale prices were flat and this is the time of year they usually rise. We reported that was a trend we wanted to keep an eye on.

Cape Coral real estate market homes closed

Other Factors Influencing the Fort Myers and Cape Coral Real Estate Market:

Another trend we were watching was the weather up North. This past winter was frightful in every aspect and many speculated this would be a boom for SW Florida, including us. The numbers weren’t as strong this season as the weather was dreadful, so some were scratching their heads.

At an Ellis Team meeting a few of our buyer specialists were commenting on how many of our buyers were done with living up North, but the weather was so bad they couldn’t leave. They longed for the day for the weather to improve enough so they could plan a trip down to paradise.

Guess what? Many of them did just that and our sales started rising. The last few days of April and the first week of May were particularly strong, and we haven’t slowed down since. Some of these sales were Northern buyers coming down. Others were local buyers making their move.

Fort Myers Sale Prices 2014 Cape Coral

In any event, we’re starting to see the charts move again. It’s too early to tell if this is a trend as closed sales tend to peak in April and May then simmer back down for the rest of the year. The same is true with prices as Northerners snatch up higher priced homes during season.

We are seeing pending sales going up right now on our team.  Countywide inventory is going down, so this may bode well for home sales going into June and July.  Prices may follow suit, and if this holds true, it bolsters the idea that perhaps 2014 is in for a late season.

Years ago summer was the hottest selling months for single family homes.  We might be returning to that model. Of course, years ago the locals freely bought and sold in the summer months when all the tourists went home because they had more time. Many locals work hard during season and things free up a bit when they go home.

For the last 7 years or so locals weren’t able to buy and sell in the summer because they were under water on their home, or their business hadn’t fully recovered yet.  Now more and more are able to sell as they finally have equity due to rising prices and paying down their mortgage. Each year going forward we may see more and more eligible locals in the market.

At the Ellis Team at RE/MAX Realty Group we’ve been listing homes and they’ve been selling quickly.  This could be a good sign. We’ve been excited to show off our new Hi Definition marketing program and we’ve been having trouble keeping our new listings long enough to video them. We do have some videos coming to the market you can check out at www.HomesinHd.TV

We are seeing increased activity from online leads as well.  I just went in and searched our online MLS search site and we had 17 new registrations in the past 2 days, so that’s about 8.5 per day.  That’s a healthy number signing up to view homes in MLS so that may be a sign there’s increased interest in the SW Florida real estate market as well. If you’d like to search the MLS, go to Topagent.com

We hope everyone has a happy and safe Memorial Day weekend, and remember Memorial Day is a day to remember US armed forces who died serving our country.

Good luck and Happy House Hunting!

To search the MLS visit TopAgent.com  To learn more about Hi Def video for your home visit HomesinHD.TV

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SW Florida Real Estate Market Changing? Let’s Analyze

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Is the SW Florida Real Estate Market Changing? Listing inventory rose slightly in Fort Myers and Cape Coral real estate markets in February from 6,192 single family homes on the market in January to 6,271 last month. Listing inventory typically peaks in January and declines slightly in February before Declining rapidly in March due to so many seasonal sales occurring. This year inventory actually rose in February and internal numbers we’re tracking in March show they’ve risen slightly again.

SW Florida real estate market single family home inventory

This may be a sign that sellers have been a little too ambitious pricing their home and buyers have backed off bidding up prices. Prices typically peak in season then level off or decline a little bit the rest of the year. This is because most of the higher priced sales occur when we have the most visitors, but if that trend is peaking it will be interesting to see where the market heads from here. New pending sales in February are down 10.6% from last year. New listings are up 5.4% over last year. So we have increasing inventory and declining pending sales in the height of season. We’ll be tracking March numbers very carefully. It’s still possible March and April could be great as Easter is late this year but the pending numbers we’re looking at don’t bear that out plus we see rising inventory.

SW Florida real estate market new pending sales and Cape Coral, Estero, Fort Myers Beach single family

SW Florida Real Estate Market Prices

Prices did rise in February up to a median price of $185,000 from $180,000 in January. Average prices rose from $301,035 in January to $311,536 Has the market peaked? Markets rarely stay constant. It’s possible the market is taking a break until it figures out where it wants to go. Properties in the $250,000 or less range are still flying off the market. Homes priced higher than $400,000 really need to make sure they’re priced competitively in the market as inventory begins to build the higher the price. Interest rates are rising again and it has put pressure on buyers. We just received some good news on flood insurance which will help the SW Florida real estate market compared to what we could have seen had the President not signed HR 3370 into law this week. New buyers will receive the same flood rates as existing homeowners do. Rates may still climb, but there are caps to how much and how fast, and before the new law was signed, there was no grandfather clause when a purchaser bought a property. This should provide some stability to costs for buyers which does affect their purchasing power. We’ve had some excellent weather down here and the weather up North has been dreadful. 2014 might be the year many will vacation down here and put plans into place to move here in the coming months. A few companies are also bringing jobs to SW Florida in the next few years. If the economy improves, our real estate market has more room to grow. If it doesn’t, our market may stagnate and remain at these levels. Like I said, the market rarely stands still. Forces affect the real estate market. Rising interest rates affect it negatively. Jobs and the economy do affect the market as well. We’re not sounding the alarm that we’re at risk of a downturn. We are saying we’re watching the numbers and we have a few things to keep our eye on going forward. The continued trend of rising prices may still occur, or it may subside and take a breather.  If your plans depend on one outcome or the other this is information that may be useful to you. Nobody knows where the market is going exactly, or exactly when it will get there. If you’ve got a property to sell, give us a call and we’ll guide you through the market. If you’re a buyer, it pays to know what areas are hot and where inventory is building. We have the information. Let it work for you. 239-489-4042 or search the MLS at www.swfloridamls.Topagent.com Good luck and Happy Selling/Buying! If you’re considering buying or selling in Fort Myers, Cape Coral, Estero, Ft Myers Beach or anywhere in Lee County Florida, give us a call. 239-489-4042 or visit our website www.Topagent.com Search the MLS View Larger Map Feel free to view our Virtual Tours . Visit our Google+ Business Page  

Perception Vs Reality in the SW Florida Real Estate Market

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It’s season again and it’s not uncommon for listings to rise during season which is usually a good thing except for those sellers that decide to “Test” the market.  There’s an old saying that goes “If your home is over the market it isn’t really on the market.”

Perception Vs Reality in the SW Florida Real Estate Market

Perception Vs Reality in the SW Florida Real Estate Market

Sellers overprice homes in all kinds of markets; good, bad, and sideways.  Overpricing is nothing new, but it seems to be gathering steam these days as sellers read headlines that the market is improving and prices are on the rise.

It is true, the market has continued to heal itself, and prices have been rising for many homes.  Some price points have a shortage of homes on the market while some price points have as much as 3 year supply.

The other day I noticed the following post on Facebook from a Bonita Springs agent who I’m friends with “Well, I see we’re back to listing properties based on list prices, not sales prices again.”  Several local SW Florida agents chimed in and agreed.

Personally I’ve been on dozens of listing appointments in the past several months.  Some we’ve taken and many we have not.  Some sellers are interviewing as many as 8 agents trying to get an agent that will agree with their price.

I’ve gone back and tracked several of the listings where we recommended a true market price and the seller chose to list with another agent at a much higher than market price.  Some have even listed just slightly higher than market and they all have one thing in common.  Their homes are still on the market.  They have not sold, and they will not sell because they are over-priced.

Oh, sellers can justify about anything.  Perhaps the Germans or the Canadians will come and fall in love with it and buy it.  We do extensive marketing to foreign buyers but one thing I can tell you is they research the market and don’t want to overpay either.  Imagine if you were traveling to another country, or even another state.  You’d research the market before you felt comfortable buying wouldn’t you?  Germans, Canadians, and Snow Birds from here in the States do the same thing.  Nobody wants to overpay.  They don’t care how much you need for the property, only what it’s worth.

Pricing your home correctly is only part of the battle.  So much more goes into effectively selling and successfully closing the sale.  Many owners and agents can get the contract, but closing it is another story.  This is where the real expertise comes in.  Notwithstanding this fact, overpricing the home negates the experience it takes to close a sale because you rarely even get that chance.

And if you are lucky enough to over-price and find a buyer, the appraisal will trip you up when the property doesn’t appraise.  Even many cash buyers are putting in contingencies that property must appraise.

A lot of sellers like to overprice in season then get serious when many of the high end buyers go home.  Why would you want to do that?  Again, if you’re over the market you’re not really on the market.  Why not have your home on the market when the most higher end buyers are here?

Sure, many of these seasonal buyers come back and visit in the summer, but some buy on impulse while they’re enjoying the weather and good times here as well.  Especially when they see how bad the weather is up North.

Sellers don’t like when buyers have erroneous perceptions about the market.  Buyers don’t get what they want when that happens and the seller just sells to a buyer with correct perceptions.  The same is true for sellers.  If you have erroneous perceptions, buyers will pass you by and work with a seller that perceives the market correctly.

Agents don’t control prices, the market does.  I don’t care if prices go up $10,000 or $20,000.  I can’t.  It’s my job to research and interpret the market for our clients so they can be successful.  I can’t make the market anything it’s not.  If I could, I’d start with my own property.

If you’re thinking of selling, give us a call and we’ll work with you to get the best price.  You might find other agents who will list it higher, but ask yourself this question, “Am I looking to sell my property or just list it and waste my time?”

All those other listings we walked away from are still on the market.  Our listings are selling. Things that make you go hmmm.  Call us at 239-489-4042 or stop by our office at 7910 Summerlin Lakes Dr Fort Myers, FL 33907

 

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