We see the Southwest Florida real estate market building momentum heading into Memorial Day Weekend. You might ask, how can you say that considering you published an article last week entitle “Downward Pressure on Real Estate?”
Real Estate Market Building Momentum
Despite downward pressure from interest rates, inflation, and oil prices, the Southwest Florida real estate market has been resilient. It just makes you wonder how much better it could have been had we not had these headwinds. The Ellis Team Current Market Index has been predicting good things for our market, and this week’s numbers were even better than last week’s. The latest CMI number is 3.48, down from 3.52, which is good news for sellers.
Third Best Year on Record For Home Sales
We’ve reported previously that 2026 is shaping up to be the third best year on record for home closings in Southwest Florida. If you look at the chart, it appears that momentum is building. 2022 saw a downturn in home sales in the second half of the year. If our market continues to build momentum, things could get interesting.
Inventory is Disappearing
Southwest Florida inventory is down to 7,959 officially in April. Ellis Team analysis of local MLS data suggests it may be down to 7,188 currently. Pending home sale activity has been quite good. We are closing home sales and working down the inventory. Once the Market Spread Index (MSI) gets down to about 4,800 we could see an uptick in prices. We think that index will be somewhere around 5,125 when official numbers are released this Friday.
As you can see the Southwest Florida real estate market is building momentum and inching closer to equilibrium and onto higher prices. What we cannot answer is if the momentum will continue or stall due to downward pressure. What we can say is this market is tough, and nothing has stood in its way on the road to recovery.
With all this optimism, why is it that some homes are not selling? The truth is that some homes are invisible to people and algorithms. If a home has been rejected by the market for a variety of reasons, buyers give up on the home.
Have you ever noticed that you do not see all of your friends updates online? This is because the algorithm determines which friends updates you see. Sure, you can always go look up a friend and see what they’re up to if you think about it. But you are not seeing their updates.
Real estate is the same way. If you know a home exists and want to see the latest on it, you can look it up. For most buyers, the algorithm determines which ones they see. If you are a seller, do you want your home invisible to the algorithm and buyers, or do you want your home featured and shown to the most amount of people.
Search is Changing
Google is beginning to feature homes on its search. Zillow, Realtor.com, and Homes.com use an algorithm to display homes. Hiring a Realtor and throwing it out there to MLS no longer is a guarantee your home will sell. If your home becomes invisible, it will sit. Getting your home sold and for Top Dollar requires an agent who knows Search and AI recommendations.
AI Interview
Always call the Ellis Team and ask about the AI interview. Brett or Sande will sit down with you and show you how to make your home Seen and attract buyers. It’s a good market right now, if your home is seen.
Call Brett Ellis or Sande Ellis 239-489-4042 or visit https://www.topagent.com/ai-interview/
Good luck and Happy Selling! Enjoy your Memorial Day Weekend!
