Monday, November 19, 2018 / by Hunter Habib
Market Update: November 2018
By D. Michael Burke
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
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
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 31st. 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