About mid-August home prices fell 5.1 percent in SW Florida on a year-over-year basis. The average home value in Lee County Florida decreased by 10.9%. Let’s look at some of the factors that led to the fall in house prices.
The official single-family inventory level increased by 16.2 percent compared to last year. There is some good news though. New listings are down 10.2% from last year and pending inventory is up 3.3%.
It’s taking too long to sell
It takes longer to sell in SW Florida. The median time to close a deal (64 days) increased by 16.4% and the median time to sell (100 days) increased by 2%. This means that homes that are marketed well and priced right are pending in about 64 days.
Many sellers have taken their home off the market this year. We’re starting to see inventory climb again in September. It’s not unusual to see inventory climb this time of year. My concern is that we are starting from a 12.67% higher point than last year. Closed sales were down 2.4 percent in August, and inventory listings in September were up 12.67 percent from last year. This is not a recipe for price hikes anytime soon.
Dollar volume fell 13.8%
Dollar volume is the sum of all sales. Lee County had a dollar volume of $565.4 million in August, compared to $5,655.7 million last year. Lower sales and lower prices played a role. Dollar volume is another metric we use to determine the overall health of the market. The dollar volume in the condo market also decreased by 13.2 percent.
Buyers aren’t afraid to bid low on homes or ask for incentives. Homes sold at 93.3% of list price in August, down from 95.2% last year. In our experience anything below 94.5% is another example of a buyer’s market. The current month’s inventory supply is 6.9 months, which is a buyer’s market.
Good news in real estate
Some good numbers were reported. New pending sales rose 14.4 percent from a year earlier, which could help September’s official numbers when they’re released. The Ellis team has put several condos under contract in the past few weeks, so this could be a sign that buyers are accepting condos again. In fact, closed condo sales were up slightly in August, and new pending condo sales were up 5.3 percent. Year-to-date condo sales are down 7.1 percent, so that’s a welcome change.
The sales of the Alice team have increased significantly compared to last year. This is indicative of two things. Our marketing works hard to sell homes, or more sellers trust the Alice team’s proven track record to sell your property when times get tough. It can be a combination of both, as people are more selective when hiring an agent when the market changes.
How to sell in this market
If you have a property you want to sell, always call the Alice team at Keller Williams Realty. 239-310-6500. Brett and Sandy have over 37 years of experience in all types of markets, and no one does marketing the way we do. Marketing your home deals, especially in a buyer’s market. Or visit www.swflhomevalues.com to get a free and quick valuation on your home. Additionally, you can track your home’s value over time, so it’s best to start today.
Good luck, and happy selling!
