CALL THE WALTER TEAM FOR ALL YOUR REAL ESTATE NEEDS ON SUNNY MARCO ISLAND. PH# 239-821-0994.
CALL THE WALTER TEAM ANYTIME FOR A MARKET UPDATE. PH# 239-821-0994
1. Our clients need factual and tangible data (“see to believe”) to better understand what’s going on here in the SWFL real estate market so we can help them make logical and informed real estate decisions.
2. We, as real estate professionals, need to always keep close tabs on our market. It’s fluid and constantly moving, so naturally, staying dialed in is exactly what we do to help earn the confidence of our clients.
- The market is VERY strong right now proving that “pent up demand” is still relevant by the high number of pending sales. Expect the activity to level off and balance, but for now, the summer looks to stay above average busy.
- We are still losing inventory by the day…. many sellers took their homes off the market for COVID-19, builders slowed/stopped the progression of “spec home” inventory, and there are concerns that some sellers might change their minds and stay put.
- Let’s not forget the past 12 months of data represents the tail end of our longest increasing market in history.
Stats to Consider (7 days):
- 1,101 pending sales, up about 22% since my last report (5-8-20 with 859) and up 62% from our last 52 weekly average (638 per week).
- 8% of those over $1 million.
- 2.99 months of current inventory (13,197 active) at “7 day pending” rate of absorption!!!
- Inventory is down about 4% since my last report (5-8-20 with 13,735 active).
- 6.13 months of inventory at “7 day sold” rate of absorption.
- 528 sold or down 18% (638 past 12 month 7 day average).
- Expect pending sales to balance as “pent of demand” fades.
- 3,002 pending sales, up 28% since my last report (5-8-20 with 2,209).
- Up 8% over the past 12 month average (2,734 per month).
- 4.39 months worth of inventory (13,197 active) at “30 day pending” rate of absorption.
- 2,138 sold (down 22%) with about 6% over $1 million.
- 6.17 months of inventory at “30 day sold” rate of absorption.
Stats to Consider (12 months):
- Sold 32,812 past 12 months, closed sales are up 4% compared to the 12 months prior.
- Avg = 2,734 closings per month or 638 per 7 day period…. which means the past 7 days pending are 43% above our 52 week avg closings!!!
- After speaking with many managers, builders, and new construction experts, the sales being reported are very strong and the future outlook is comparable.
- Buyer and agent incentives are still very strong…. lots of $$$ on the table in allowance credits, rebates, or other closing cost credits.
- Still some inventory to “purge” in certain communities but if demand continues, we might run into inventory shortage as most builders halted “ready to go” spec homes as a move of caution during COVID-19.
- Luxury market is showing MANY new contracts over the past 30 days.
- Nobody expected to bounce back the way we are as quick as we are.
- Overall closed sales have stumbled but is quickly overshadowed by the level of new contracts taking place.
- The pent up demand is very real…. when will it taper?
- We need more inventory, we’re losing total listings day after day.
- Pricing HAS NOT been effected, most reports show small gains in both “average & median price” with some up to an 8% increase.
Some Other Factors to Consider:
- With international travel still leery and cruise lines at a halt (Carnival starts Aug 1), where are people going to go for the beach and some sub-tropical weather? Florida ranks high on that list.
- It appears that COVID-19 may have increased the overall demand or future interest in the FL market as a whole, whether motivated by lifestyle, tax benefits, or overall quality of life. Expect demand to continue.
- Interest Rates being in the 2’s are very real, making now a great time to buy.
- It is an election year which always has a way of swaying consumer confidence.
- COVID-19 – Will there be an increase in numbers as we open back up and what could happen come this fall?
We still have a little ways to go before things return to “normal”, but I can’t help but feel encouraged and optimistic about our futures given the data we just discussed.