Market Update: November 2018

By D. Michael Burke

 

Greetings, Neighbors!

 

Happy Thanksgiving! This is the time of year where we are at the jumping off point for the winter buying season.  Upon the upcoming winter season, we have also had several questions about the status of the market given some of the events of the past few years i.e. Hurricane Irma, water quality issues, etc.   The short answer is that the residential real estate market in Southwest Florida is very steady and stable, and representative of a fair market.  If we go back and review pending and closed sales for October 2016, 2017, and 2018, the numbers are very steady with no major fluctuations, even post Hurricane Irma.  This is very good news for several reasons. One reason being that a steady market is a healthy market! Those are the type of trends we want to see. The second reason is that historical market behavior can help predict the level of activity will have during our busiest selling times.  Based on the current historical trends, the market is poised and ready for an active winter selling season, which is great news for sellers!

 

However, sellers should realize that this trend does not translate into the expectation that home prices will increase significantly in January 2019.  If you’re a homeowner waiting for January 2019 to list your home because you think pricing will be significantly higher, you may want to reconsider. Residential real estate prices are expected to remain steady going into quarter one of 2019, hence the stable market trending noted in the last three years.  Waiting for price increases in 2019 before listing a property for sale is an unrealistic sales strategy based on current market behavior. 

 

Based on steady pricing, there is no reason to wait until January to list.  Listing now definitely has its advantages to the seller.  Currently, there is a shortage of inventory, especially in the $300,000 to $500,000 single family home and condominium price segment.  These inventory shortages are presenting a challenge to buyers who want to make a purchasing decision sooner than later. Listings priced to fair market value now will produce open house activity and offers.  If you list now, you’ll have less competition, more open house activity, and offers.  Take advantage of buyers who are in the market now!  Since pricing is expected to remain steady at fair market value, there is just no reason to wait. Listing now could potentially shorten your wait to receive an offer.

For those looking to buy with financing, more programs are now available to assist in locking in rates prior to 2019 rate increases. Historically, mortgage rates are not as high as past decades, but rate increases in 2019 are likely. For area investors, now is the time to take advantage of new investments to avoid a capital gains tax by closing before December 31^st. Southwest Florida is a great choice for investors because of the absence of state tax and the current rental property demand.  Investing now to avoid inventory challenges also is highly recommended.  

What are your plans for buying or selling this winter? Whether you’re looking to invest, purchase a second home or just looking for the home of your dreams, our team can help you make it happen with the best possible outcome!  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! 

D. Michael Burke, P.A.

Paradise Real Estate Team                                                                                                     

Keller Williams Elite Realty

26381 S. Tamiami Trail, Suite 300

Bonita Springs, FL 34134

239-498-7600

Michael@TeamMBurke.com