Across the entire U.S. this summer, we saw a record number of home sales. This was fueled, in part, by so many millennials entering the buying market for the first time. In addition to that, working from home is becoming the new ‘norm.’ This is causing even more new buyers to enter the market, along with current homeowners wanting to upgrade. 

Inventory

In Southwest Florida, the busiest months this summer were April, May and June. During this 90 day span, the number of home sales sky-rocketed, while inventory tanked. In fact, the total number of sales in April of 2021 was more than double that of 2020, while inventory dropped by nearly 75%. 

NOTE: Months of inventory refers to how many months it will take to sell all current listings, at the current rate of sale, if no new listings were added.  

Although inventory was extremely tight this summer, we are starting to see signs of correction. From April to October, our total number of sales has been nearly cut in half. Simultaneously, our inventory levels have doubled in that same time period, going from 2 months worth of inventory to nearly 4. 

What This Means

While the market may be easing up a bit, sellers, in general, are still getting every penny of what they ask, according to the graph below. 

With sales slowing and inventory rising, coupled with expected rate hikes,  we’re forecasting that the market continues to cool down over the next few months. These same conditions are true for most major metros in the U.S., so we seem to be on the right track towards a more balanced market. 

If you’ve been considering selling your Southwest Florida home, now is the time. Homes are still “flying off the shelves,” yet the buying market is becoming more navigable. This makes it easy to sell on your terms and then buy (at least somewhat) on your terms. 

With just a few clicks, you can schedule a time for us to call you using This Link. You can also call or text us anytime at (239) 292-2317.