Closed sales, newly pended sales, and average sales prices have remained stable over the past two years. At the end of 2016, inventory was trending toward an oversupply with increases in every price segment for both single family homes and condominiums and 7.3 months of supply in the overall market.
By the end of 2017, inventory had decreased by 5% while demand remained high, resulting in a more balanced market with 6.8 months of supply. My Southwest Florida market can sometimes shift quickly from a balanced state to one that favors the buyer or seller, depending upon the dynamics that change. If inventory continues to decrease, and buyer demand remains strong, it could shift to favor sellers and push prices higher.
Alternatively, if inventory remains stable or grows and buyer demand decreases, the shift could favor buyers. The outlook for 2018 is for the market to continue the stable trend of the past two years, with moderate price appreciation and an ample supply of product from which buyers can choose. Just recently I am seeing a slight downward pressure on asking prices, and adjustments by sellers.
Well priced listings, like mine, sell readily!