Sales: According to the Lee County Association of Realtors Multiple Listing Service, Lee County area residential sales totaled 122 units during October, an increase of 23 units or 23.2 percent from the same month in 2016. Year-to-date sales through October were slightly ahead of the same period in 2016. Two more resources to review: Quarterly Report and Annual Report.
Forecast: October sales were 5 units or 4.27 percent above ACRE’s monthly forecast. ACRE’s 2017 sales forecast through October projected 1,580 closed transactions, while the actual sales were 1,598 units.
Supply: The Lee County housing inventory in October was 505 units, an increase of 10.5 percent from October 2016 and a 63.1 percent decrease from the October inventory peak in 2010 (1,367 units). October inventory in Lee County decreased 5.4 percent from September. This direction is consistent with historical data indicating that October inventory on average (2012-16) decreases from September by 1.1 percent.
The inventory-to-sales ratio in October was 4.1 months of housing supply. The market equilibrium (balance between supply and demand) is considered to be approximately 6 months.
Demand: October residential sales decreased 10.3 percent from September.
Pricing: The Lee County median sales price during October was $234,900, up 4.4 percent from October 2016. The October median sales price was down 8.7 percent compared to the September median sales price. Historical data (2012-16) indicate that the October median sales price on average decreases from the September price by 1.8 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: “The first print of third-quarter economic growth showed surprising resiliency. The expected economic hit from the recent natural disasters either failed to materialize or was drowned out by business optimism,” said Fannie Mae Chief Economist Doug Duncan. “Recent data showed a stronger pickup in domestic demand than anticipated, leading us to increase our growth forecast for the final quarter of this year and coming quarters. We also revised higher our 2018 growth forecast to 2 percent. Tax cuts, if enacted, present upside risk to our growth forecast for next year but could also lead to more aggressive Fed action. Housing still remains a drag on the economy, as shortages of labor and available lots, coupled with rising building material prices, further complicate existing inventory, affordability and sales challenges.”
Click here to generate more graphs from the Lee County October Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.
The Lee County Residential Monthly Report is developed in conjunction with the Lee County Association of Realtors.