Real Estate Market Puzzle-Affects on Sellers and Buyers

By
Real Estate Agent SL3287291
https://activerain.com/droplet/5cyz

Let's take a look at the recent trends in Real Estate and put some pieces of the puzzle together to see what the impact is for Sellers and Buyers.

I will use some data from my local market of Lee County, Florida.

First Trend:

Homes are selling faster than last year.

When we look at the March 2107 compared to March 2018 we find that Median Time to Contract decreased by 11.9%. In 2017 Median days to contract was 67, but in 2018 it is 59 days.

What does this mean for the Seller?

1. A shorter time on the market could mean a higher sale price.

2. Reduced pressure on the seller who is under time constraints and needs a fast sale.

3. Improved negotiation power. The longer a home stays on the market the ability to have a strong point of negotiations decreases.

 

What is the Affect on Buyers?

Buyers will face more challenges:

1. More competition in the market. This may result in the buyer needing to revise their list of desires in a home.

2. Need to be better prepared with your financial picture. Instead of looking for the least amount of money for a down payment, it might be wise to consider a 10-20% down to show the seller that you are a serious contender as the new owner of their home.

3. "Shopping" time will be reduced. Browsing can cost you a chance to purchase a home that would have been ideal.

This means that buyers will need to be more specific in what they are looking for, more focused and not just looking around in hopes of seeing a listing that might pop up.

4. Making sure you are working with a knowledgeable professional real estate agent who can guide you through the market and save you from delays.

Second Trend:

Home Prices are Rising.

In Lee County the Median Sale Price rose by 2.0% from March 2017 to March 2018. From $255,000 to $260,000,

In addition we find that the Median % of Original List Price received rose 0.3% from 95.5% to 95.8%.

What is the Affect on Sellers?

Potential for higher profit from the sale of their home increases.

What are the Consequences for Buyers?

1. It is Critical to know what your home purchase Budget is.

Pre-Approval is necessary before you start your home search. Most sellers will not entertain an offer if not accompanied by a Pre-Approval Letter.

2. Know your financial purchase limit and reduce your search time. You waste time and face the possibility of losing the right home when you are spending time looking at listings that are above your budget price.

3. Be prepared to alter your Wish List.

So many buyers think they can get every criteria they have in mind.

But the reality of the current market may not support that thinking.

There are 3 Main Factors in selecting your home:

A. Location: Resale property is where it is. The location can not be changed.

B. Fit/Finish: This is the size and condition of the home. That can be upgraded if your budget allows. If the home is too large there is not much you can do about that.

C. Price: You can try to negotiate on the price, but market conditions may limit your ability to make much of a change.

So, When searching for your home you may have to make search adjustments in one or more of the 3 factors.

 

Third Trend:

When interest rates rise, and they have gone up about 1% in the last year, the purchasing power of the buyer decreases. Add that to the rise in home prices and many buyers may even lose their ability to buy a home at close to their dream ideas.

So, we can conclude that the real estate market is changing and depending on whether you are a buyer or seller the effects are going to be different.

What would I suggest to Sellers and Buyers,

Now is a good time to sell or buy.

Waiting could be costly, especially for buyer.

 

If you are looking for a home in Southwest Florida, Lee County, take a look at the homes that are currently on the market Find Your South Florida Home.

 

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
ActiveRain Community
Location:
Florida Lee County
Tags:
real estate market
real estate trends
lee county real estate
florida real estate market

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Ambassador
1,928,270
Hannah Williams
Re/Max Eastern inc. - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-953-8818

Interesting market report John Wiley 

Jun 01, 2018 02:31 PM #1
Rainmaker
401,573
John Wiley
Fort Myers, FL
Lee County, FL, ECO Broker, GRI, SRES,GREEN,PSA

Hannah, thanks for commenting.

Jun 01, 2018 02:35 PM #2
Rainmaker
2,093,574
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good morning John - just more proof that buyers need to preplan and then be ready to act.

Jun 05, 2018 09:05 AM #3
Rainmaker
401,573
John Wiley
Fort Myers, FL
Lee County, FL, ECO Broker, GRI, SRES,GREEN,PSA

Grant Schneider you are right on the point.

Too many think they can take their leisurely time and get their dream home.

It is possible, but less likely in today's market.

Thanks for the comment

Jun 05, 2018 10:42 AM #4
Rainmaker
4,271,407
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

John, great market update on Lee County, and hope buyers and sellers contemplating a move read this, and call you.

Jun 06, 2018 10:31 AM #5
Rainmaker
401,573
John Wiley
Fort Myers, FL
Lee County, FL, ECO Broker, GRI, SRES,GREEN,PSA

Joan Cox I appreciate your taking time to read the market update.

Thank you

Jun 06, 2018 02:34 PM #6
Ambassador
1,983,589
Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

We are seeing a bit of an adjustment in some segments of the market here. The price point from 500-800 has slowed a bit - we're staying on it and looking for more pricing trends. Do agree with your conclusion - it's still a very good time to buy and sell a house. D

Jun 09, 2018 07:40 AM #7
Rainmaker
401,573
John Wiley
Fort Myers, FL
Lee County, FL, ECO Broker, GRI, SRES,GREEN,PSA

Debb Janes EcoBroker and Bernie Stea JD it really is important to keep up with the trends as we are seeing changes that affect the purchasing power of buyers.

I find it interesting to see what other markets are experiencing and then compare that to our market.

Thanks for your contribution to the discussion.

Jun 09, 2018 02:00 PM #8
Rainmaker
3,308,946
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

John, here in my market it has been a seller's market for going on five years and depending what month a little slower or faster but the prices have increased in this time period by about 50% and we surpassed a few years ago the top of the market before it crashed...Endre

Jun 12, 2018 11:45 PM #9
Rainmaker
401,573
John Wiley
Fort Myers, FL
Lee County, FL, ECO Broker, GRI, SRES,GREEN,PSA

Endre Barath, Jr. it is really interesting to see different markets around the country and compare the activity.

California has a lot of different dynamics than many other markets.

Thanks for sharing.

Jun 13, 2018 05:59 AM #10
Rainmaker
3,299,136
Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Home and Condo Specialists

Sellers are going to like this Lee County FL market report, and it seems like a good time to list their homes now!

Jun 21, 2018 07:38 AM #11
Rainmaker
401,573
John Wiley
Fort Myers, FL
Lee County, FL, ECO Broker, GRI, SRES,GREEN,PSA

Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400 I agree it is a great time to list houses.

I appreciate your comments.

Best wishes

Jun 21, 2018 10:20 AM #12
Ambassador
3,984,754
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

Things are changing fast and we have a new normal, John. I hope you are selling lots of houses.

Jun 21, 2018 06:30 PM #13
Rainmaker
2,148,666
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

John Wiley - you have a thorough knowledge of market trends in your area and you clearly illustrated your knowledge and expertise in this fine marketing report. You have provided valuable information to consumers who are wanting to buy and sell in your market areas of expertise. Providing valuable information so that consumers can make wise choices begins with hiring you. 

Jun 21, 2018 07:24 PM #14
Rainmaker
401,573
John Wiley
Fort Myers, FL
Lee County, FL, ECO Broker, GRI, SRES,GREEN,PSA

Debbie Reynolds I think you said it well, we have a new normal.

It is our job to understand the trends so we can provide the highest quality service to the consumer.

Thanks for your comments.

Jun 22, 2018 05:14 AM #15
Rainmaker
401,573
John Wiley
Fort Myers, FL
Lee County, FL, ECO Broker, GRI, SRES,GREEN,PSA

Patricia Feager I appreciate your kind words and encouragement.

For me it is more than a quick look at the market report each month, it is my job to understand how those trends affect the people I serve.

I do not make decisions for my clients but I feel it is my responsibility to provide them with the latest information so they can make a wise and educated decision.

Thanks for you comments.

Jun 22, 2018 05:18 AM #16
Rainmaker
4,271,407
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

John, thank you for stopping by my post this week, and hope you write another post soon!  

Jun 24, 2018 12:45 PM #17
Rainmaker
401,573
John Wiley
Fort Myers, FL
Lee County, FL, ECO Broker, GRI, SRES,GREEN,PSA

Thanks Joan Cox for the encouragement. I now have a list of topics to post on.

Best wishes

Jun 25, 2018 05:01 AM #18
Rainmaker
2,093,574
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good afternoon John - I hope that you are having a good first quarter.  Thanks for commenting on my blog.

Mar 07, 2019 11:40 AM #19
Rainmaker
2,148,666
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Hi John Wiley - I like how you compare and contrast. I hope the market is doing good for you and that you are doing well too!

Thank you for visiting my blog and commenting. Your interest in what I have to share on ActiveRain is greatly appreciated.

May you be happy and healthy always!

May 08, 2019 04:06 PM #20
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
401,573

John Wiley

Lee County, FL, ECO Broker, GRI, SRES,GREEN,PSA
I Can Find Your Dream Home-Contact Me Now!!
*
*
*
*
Spam prevention