Total Dollar Volume Down Archives - Fort Myers Real Estate and Homes For Sale

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.

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.

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!