Supply and demand is the most basic law of economics, and that applies to real estate, too. Over the past few years, demand has been lax, and supply has been extremely high as buyers didn’t always have the means to purchase.
Now, though, that equation has tilted more in the sellers’ favor.
But how much more? What does supply look like now with Southwest Florida real estate?
Fortunately, the Bonita Spring-Estero Association of Realtors (BEAR) has the data we need to reach a conclusion. Their latest report – the November 2013 Monthly Market Detail – gives us a few clues.
Supply of Inventory Is Down Sharply
One big metric is pretty simple: it’s the number of months of supply we have in the market currently, based on recent sales rates.
Generally, if current inventory is at 5.5 months of supply, a market is fairly balanced. For November 2013, inventory stood at 5.7 months, which slightly favors buyers. This is a 35.3% decrease from November 2012, which is pretty substantial.
Inventory Listings Are Down
Buyers are picking up more homes at a faster rate, but we’re also listing fewer homes.
November’s inventory of active listings fell by 31% from last year, and is at its lowest point since August. Since the overall supply figure is down so much, buyers have bought more homes than usual over the past year.
New listings are down as well; the figure fell by 30.5%.
Also, in what is undoubtedly good news for buyers and sellers alike, it takes a lot less time to sell a home. The median days on market is 42, which mean 50% of all homes take less time than 42 days to sell, while 50% take more. That number was 111 days last year, which is astounding.
All in all, real estate is looking up when it comes to supply. The Southwest Florida real estate market continues to thrive. Contact me for more information on how you can take part!