Market Forecast – Q1 2020
What can you
expect the Greater Lakeland Area real estate to do in the first quarter of
Today, I’m going to share some facts, figures
and predictions that some of you are going to love, and others not so much..
going to prove challenging for Home Sales. We are seeing a shift happening
right now .
Greater Lakeland area is so diverse, and has a vast array of communities in
very different price ranges, we have to look at projected trends with this in
news is, Home owners and buyers alike who are in the $150,000 to $250,000
market will continue to see high demand…..
will come continued inventory shortages in this price range.
As you can
see, there have been 27 homes sold so far in this price range. ALL of which
have sold for 100% list price on average. This trend
With one exception:
will drop..They already have started.
home sales will decline 1.8% from 2019.. In the Greater Lakeland area we will
see home prices start to flatten.
are not going to see the spike in home values as we saw in 2019.
news is we will still see an increase, predicted to be just 0.8% , opposed to
the average 3.6% spike we saw in 2019.
why that is?
know the home Values are staying consistent, which is good news for
Homeowners…Especially if you own a home in the median range ..so why the
predicted decrease in Home sales?
Keep in mind
that the entire country is finally unraveling and bouncing back from the worst
economic downturn and real estate disaster in history. So who are the buyers
surprise that over 35% of homebuyers are millennials (22-37 years old) and
nearly another 27% of buyers are Gen Xer’s ( 38-53)..
with more astringent lending guidelines, 2020 will be challenging for this pool
of buyers, who are making up well over half of all our buyers…Not because of
what they can afford, but because of what they can NOT afford.
and especially Gen Xer’s are extremely smart buyers. They have done their
homework weeks before even calling a Realtor to see the first home.
And they are
not settling either. Gone are the days of buying a starter home and taking a
few years to upgrade.. They are demanding homes in pristine condition, and
skipping the all the traditional paths their parents took when investing in
their first home.
And if they
cannot find it, they are willing to wait for the ideal home to become available
and put off buying at all until then.
is crystal clear in the Greater Lakeland area right now.. Hence the reason
behind the predicted decline in home sales.
Let’s take a
look at the next higher price range and how different these scenarios change:
We know the
median home price in the Greater Lakeland Lakeland area is $227,000..
Then why is
the average home Sale so far this year $275,000?, yet home sales are dripping?
It goes back
to the same thing we just spoke about.. The majority of buyers who are looking
to skip the starter homes and opt for an upgraded homes are outweighing the
buyers for the lower price ranges.
there are more homes to chose from in this price range, competition is a bit
stronger for these homeowners.
I predict we
will see a higher percentage of list price reductions for this price range, and
also more homeowners opting to take their home off the market for now. In this price range so far this year we’ve
had 27 price reductions..Opposed to zero this time last year.
We are also
seeing a slight increase in total time these homes sit on the market before
selling. Quite a huge difference in this price range!
above $400,000 only make up approximately 13 % of all homes in the Greater
currently only 111 listed homes for sale in the Greater Lakeland area that are
over $400,000. Of those, only one home in this price range has closed this
year..Opposed to 3 homes selling this time in 2019.
Over all I am seeing a continued decrease in
list prices and increase in total days on the market. I predict we will see
this trend continuing through the first quarter of 2020, with an upturn in
these numbers starting in the second quarter..
If you’re wondering why… There is a very good reason for this…But
that’s a future video in a few weeks..
bottom line to the Greater Lakeland Real Estate forecast for the first quarter
of 2020 is:
If you are a
Homeowner, and have a home value of less than $250,000 AND your home is in move
in condition, You, as Seller are still
in the drivers seat!
are in the $300,00 plus range..Be prepared for your Realtor to suggest a price
reduction or buyer concession if your plans are to sell this Quarter..
Otherwise, you may see you total days on the market increase.
in any price range: Inventory is remaining tight right now. A solid piece of
advice to you:
Get all of
your finances in order, have your lender provide the strongest possible
pre-approval letter for you and have at
least 10% of your purchase price IN THE BANK.
So when that ideal home comes
along, you can beat out your competition..
tips and guidance, check out my earlier
video on my Top Secret methods to Get Your Offer Accepted.
Kelly, Lakeland Home and Lifestyles with Premier Realty. If you’re still not
sure where you stand in this Real Estate Market and want a free consultation based
on your individual circumstances, I invite you to complete the short
form below titled “ Tell me about your
plans”. I personally answer each