by Broker Associate Sarah Ashton, Ashton Kirchner Group, Keller Williams Realty
As our “unprecedented” year of 2020 enters into the fourth quarter, Real Estate is a common topic of discussion. On a national level the discussion is the urban flight and prices falling or suburbs booming with homes being snapped up before they hit the market. Across the nation, new home construction is up 8 percent – with September being the highest number of single family home starts since June 2007. (Source: National Association of Realtors and National Association of Home Builders)
More locally, Southwest Florida is experiencing a significant boom in buyers and a record low inventory of properties – both houses and condos. Builders are having increased demand for new homes. Local builder Dan Dodrill of Daniel Wayne Homes says that demand for new homes is strong even with the cost of some construction materials driving higher prices. He anticipates construction material costs will increase 4 to 6 percent after January 1, 2021.
Boiling it all down: Buyers today need to be committed to making a decision and pulling the trigger faster on properties that fit their criteria. In my own experience and in speaking with my Realtor colleagues on the island, we all have had buyers who have lost out on a property because they delayed in making the offer. This makes it really hard on buyers who are either just starting the process of looking or have a wish list of features that is hard to find in any one property.
We are on pace for a record number of property sales on the islands. As of October 21st, the number of closed sales had already exceeded the total number of closed sales for all of 2019 and there were close to 100 properties under contract and likely to close by December 31st. With high demand it is a good time to sell. With low interest rates, it is a good time to buy – just be ready to move when you see the right property.