Reading back over my last post back in April it’s now clear that I no idea what I was talking (actually writing) about.
Please bear in mind that these comments are relevant only to our local market in Charlotte County. Market conditions in other areas may be very different.
I predicted that the market was going to stall and in fact that was the case for a couple of weeks. However, very quickly, things flipped around and sales came roaring back. However new listings do appear to have slowed and as a result we now have a historically low inventory of available homes.
There is currently just 2.9 months inventory in Charlotte County and in at least one zip code the number is less than 1.9. For context in a normal balanced market inventory would be around 6 months.
As far as Bank Owned (REO) properties is concerned the situation is equally dramatic. Back in April I reported that across Sarasota, Charlotte and DeSoto counties there were only 68 active REO homes for sale. Currently that number is 19 (not a misprint, it really is 19) For context sales of REOs for the last 6 months were 197 which is incredibly low. That represents an inventory of about 17 days.
I do not have a good explanation for what’s going on. Logic says that the housing market if not already in the tank should at least be showing signs of weakness. It isn’t. This may be because people are moving from the cities into more rural areas. Maybe we’re getting a rush of people retiring to Florida and those are people who are not affected by COVID.
I will leave you to make your own conclusions as to whether this is a good time to buy. It is definitely a very good time to sell.
I will be keeping a very close eye on the market so I can detect any early signs of a change. I won’t leave it so long before my next update.