Friday, August 3, 2018 / by Hunter Habib
Market Update - August 2018
It’s been a strangely dry, but wet, summer season thus far in Southwest Florida. The unpredictable weather and the overabundance of algae we’re experiencing right now has not deterred buyers, but in the local market, inventory levels have decreased somewhat, especially in the $300-500K price segment. This is likely due to those homes selling the quickest, as that price point is a sweet spot for many buyers currently looking in the market.
If you’re in the market to buy in that price point, be prepared for some competition out there due to the limited availability right now. For those homes in this price segment that are accurately priced to market value with updated décor both inside and outside, and are in desirable communities, multiple offers will be the challenge for buyers. If you find a property that you really like in this price segment, don’t wait – put your offer in now because the property could very well be going into a pending status within 24 hours. Are you considering new construction? If so, there is plenty to choose from, however, you should not consider a new construction purchase without the assistance of an experienced real estate agent. Your agent can also negotiate on your behalf for new construction, as buyers do not realize how much they really can negotiate and sadly, money has been left on the table due to that lack of knowledge. Bringing your agent to shop for new construction homes is a smart move and it costs you nothing. The builder/developer pays the commission, so you have nothing to lose!
For sellers, if you’re planning to list your $300-500K price segment home in Bonita Springs or Estero, or it is already listed, pay close attention to pricing. In 2018 thus far, we’ve seen many overpriced listings just sit on the market with little to no activity. However, sellers have become savvier throughout the year and, on average, there were approximately 300 price repositioning per month in the last quarter for both condominiums and single-family homes in Bonita Springs and Estero. Sellers now understand that homes that are not priced to market value simply will not sell. Another point that is just as critical as pricing for sellers is the look of the property. Homes that have outdated décor inside (no Tuscan décor, please…think Coastal) and/or outside are not as desirable (especially when competing with new construction homes…) and sellers will have to either update the home prior to listing or be prepared to compensate the cost to update through pricing. With new construction competition out there, it is best to start out on the right foot and price it right! Otherwise, you will miss that critical window of new listing activity and you won’t be able have that window again if you reposition the price later. The good news for sellers is that if you price it right, it will sell! Additionally, if you list during these summer months, you’ll have less competition for existing homes listed right now. Lastly, summer buyers are serious and very motivated! Take advantage of this time while you can because once we start 2019, inventory for existing homes will flood the market.
It’s an interesting time in the market right now, but that doesn’t mean you can’t achieve your buying or selling goals. Our team is currently looking for listings in that $300-500K price segment and if you want to get it sold, we are ready to make it happen! Here is a handy list of unique sales tools we provide our buying and selling clients. Whether buying or selling, our tools are PROVEN to help you get the most from your transaction!
Let us help guide you through current market conditions and assist in making the best decisions for the purchase or sale of your Southwest Florida property!
D. Michael Burke, P.A.
Keller Williams Elite Realty
26381 S. Tamiami Trail, Suite 300
Bonita Springs, FL 34134