Sales: According to the Lee County Association of Realtors Multiple Listing Service, Lee County area residential sales totaled 201 units during May, a decrease of 11.5 percent or 26 units from the same month in 2016, when sales totaled 227 units. Year-to-date sales remained slightly ahead of the same period in 2016. Two more resources to review: Quarterly Report and Annual Report.
Forecast: May sales were right on target with ACRE’s monthly forecast. ACRE’s 2017 sales forecast through May projected 715 closed transactions, while the actual sales were 748 units.
Supply: The Lee County housing inventory in May was 542 units, an increase of 4 percent from May 2016 and a 63 percent decrease from the May inventory peak in 2010 (1,456 units). May inventory in Lee County decreased 2 percent from April. This direction contrasts with historical data indicating that May inventory on average (2012-16) increases from April by 11.5 percent.
The inventory-to-sales ratio in May was 2.7 months of housing supply. Restated, at the May sales pace, it would take 2.7 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be approximately 6 months during May.
Demand: May residential sales increased 28 percent from April. This direction is consistent with seasonal buying patterns and historical data indicating that May sales on average (2012-16) increase by 36 percent from April.
Pricing: The Lee County median sales price during May was $208,241, up 2 percent from May 2016. The May median sales price was up 3 percent compared to the April median sales price. Historical data (2012-16) indicate that the May median sales price on average increases from the April price by 8 percent. Pricing can fluctuate from month to month as the sample size of data (closed transactions) is subject to seasonal buying patterns. ACRE recommends contacting a local real estate professional to discuss the latest pricing trends.
Industry perspective: “Once again, our full-year growth forecast remains intact as the economy grinds along, with the prospect of material policy changes appearing to be delayed,” said Fannie Mae Chief Economist Doug Duncan. “We expect consumer spending to resume its role as the biggest driver of growth in the second quarter amid improvements in the labor market. Positive demographic factors should continue to reshape the housing market, as rising employment and incomes appear to be positively influencing millennial homeownership rates. However, the tight supply of homes for sale continues to act as both a boon to home prices and an impediment to affordability.”
Click here to generate more graphs from the Lee County May Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.