The Rising Real Estate Market

IF YOU ARE HOUSE HUNTING IN SOUTHWEST FLORIDA, THE MARKET IS MOSTLY IN YOUR FAVOR. ACCORDING TO REAL ESTATE EXPERTS. IN FACT, THIS WEEK IS CALLED THE GOLDILOCKS WEEK ALL ACROSS THE COUNTRY. SOUTHWEST FLORIDA REAL ESTATE EXPERT DENNY GRIMES JOINS US NOW WITH A SNAPSHOT OF THE RESIDENTIAL MARKET IN OUR AREA. DENNY, THANK YOU SO MUCH FOR TAKING TIME TO JOIN US FROM SAN JUAN, PUERTO RICO WHERE YOU ARE ATTENDING A SPECIAL CONFERENCE ABOUT THE FUTURE OF REAL ESTATE. >> SURE. EVERYBODY WANTS TO KNOW WHAT'S GOING TO HAPPEN NEXT. LESS WIFE FLEW DOWN. THAT'S WHAT WE'RE GOING TO LEARN ABOUT. >> NOW WE ARE SEEING FAVORABLE CONDITIONS FOR BUYERS IN THE 3RD WEEK OF APRIL. 1ST QUARTER NUMBERS JUST CAME OUT FOR JANUARY THROUGH THE END OF MARCH 2026, WHAT IS THE DATA SHOWING US? >> WELL, THIS IS THE MOST EXCITING. THE MOST POSITIVE IS AVAILABLE. SHARON, A COUPLE OF YEARS. AND WE KIND OF MONITOR 3 KEY INDICATORS. NUMBER ONE IS THE NUMBER OF SALES QUARTER. ONE YEAR OVER YEAR IS UP 11%. SO THAT'S A TREND IN THE RIGHT DIRECTION. OUR MARKET IS SHOWING MOMENTUM. NOT ONLY THAT THIS WAS THE BEST 1ST QUARTER, JENNIFER, WE HAD SINCE 2022 TO WHEN WE ARE COMING OUT OF THE COVID YEARS. SO SALES MOMENTUM IS POSITIVE. THE SECOND METRICS IS PRICING PRICING IS FLAT YEAR-OVER-YEAR. OUR PRICES ARE STABLE RIGHT NOW, WHICH MEANS IS OUR MARKET IS RETURNING TO OUR RATIONAL CITY. SO THAT'S ALSO GOOD NEWS FOR BUYERS ARE NOR BIDDING WARS. THAT TYPE THING GOING ON. SO THE MARKET PRICING IS STABLE AND THE OTHER THING THAT THE 3RD INDICATOR IS THE NUMBER OF HOMES BEING SOLAR INVENTORY INVENTORY BASICALLY IS DOWN ABOUT 15% FROM LAST YEAR. HOWEVER, IT'S STILL UP 100% FROM 2022. BEST BETS WHEN WE HAD NOTHING ON THE MARKET. SO WHAT THAT MEANS FOR BUYERS AS THEY HAVE SELECTIONS AND THEY HAVE CHOICE, THEY'RE NO LONGER DICTATED BY THE SELLER. WE'RE STILL IN A BUYER'S MARKET, BUT IT'S IMPROVING. SO THAT'S GOOD NEWS FOR SOUTHWEST FLORIDA. >> WHAT IS THIS TERM THAT I'VE HEARD CALLED GOLDIE LOCKS WERE IN THE GOLDILOCKS WEEK FOR REAL ESTATE. WHAT DOES THAT EVEN ME? >> WELL, IT'S FUNNY. I'M HERE TO LURE BUNNY. I SO I HAD TO USE AI TO FIGURE OUT WHAT GOLDILOCKS WEEK WAS BECAUSE I NEVER HEARD ABOUT IT. MY 40 YEARS, A REAL ESTATE. I JUST HAD A NATIONAL ZOOM CALL WITH 100 PAGES ACROSS THE COUNTRY SAY THEY'VE HEARD THIS GOLDILOCKS SAYING NO. BUT WHAT THEY'RE TALKING ABOUT IS THE GOLDILOCKS EFFECT. YOU KNOW, THE POOR JUST TOO HOT TO COLD. JUST RIGHT. AND WHAT KIND OF INDICATE HE'S KIND OF A FUN FACT. IT'S NOT USEFUL, BUT IT'S MATH THAT A CULT DEFEND DOUBLE THAT SUPPOSEDLY THIS IS THE BEST WEEK TO SELL REAL ESTATE IN THE COUNTRY. NOW I'VE GOT BAD NEWS FOR YOU ACTUALLY ENDED ON THE 18TH OF THIS MONTH. SO YOUR VIEWERS AND THIS GOLDILOCKS WEEK. >> WELL, I DO HAVE A QUESTION FOR YOU ABOUT OUR OUR MARKET AND MORTGAGE RATES AND HOW THE DIP IN MORTGAGE RATES IS IMPACTING SALES FOR HOMES IN OUR AREA. WHAT CAN YOU TELL US ABOUT THAT? >> WELL, I THINK MORTGAGE RATES KIND OF VERY DAILY KIND OF LIKE DRIVING BY THE 7.11 AND LOOK AT THE GAS PRICES AND THEN IT CHANGES EVERY DAY. AND SO IT'S NOT SIGNIFICANT. YOU KNOW, THE LOW, MAYBE, YOU KNOW, THE FIRST PART OF MARCH WAS 6%. NOW IT'S 6.3 DOWN FROM 6.5, IT GOES UP AND DOWN JUST LIKE THE GASOLINE PRICE. BUT IT DOESN'T REALLY AFFECT THE MARKET. WHEN YOU LOOK AT IT RATIONALLY BECAUSE THE DIFFERENCE, IF YOU LOOK AT A $400,000 LOAN ALLOWED THAT DIFFERENCE BETWEEN 6, 6.3, WHICH IS WHICH IS THE RATE TODAY. JENNIFER, YOU'RE LOOKING AT ABOUT $70 A MONTH OR IT'S GOING TO BE ABOUT $2.50 A DAY. I DON'T THINK THAT SHOULD STOP SOMEBODY FROM GOING INTO HOME OWNERSHIP. >> IF SOMEONE IS SELLING, HOW LONG CAN THEY EXPECT TO HAVE THEIR HOME LISTED AN ON THE MARKET BEFORE GETTING IT UNDER CONTRACT? >> WELL, IT'S A FAIR QUESTION. I MEAN, THERE IS AN AVERAGE OUT THERE. IT'S PROBABLY ABOUT 75 OR 80 DAYS, BUT REALLY IF THE SELLER IS PHISHING WITH A THIS KIND OF LIKE YOU'RE GOING FISHING, IF YOU THOUGHT A HOOK IN THE WATER WITH NO BAIT ON IT, THERE'S A CHANCE OFFICIAL SWIM INTO IT BACKWARDS AND GET TANGLED IN THE LINE. BUT IT DIDN'T HAVE VERY OFTEN DIDN'T HAVE VERY FAST. SO TYPICALLY IN THE MARKET WITH A VELOCITY, IF A SELLER HAS IT PRICE COMPETITIVELY, YOU'RE GOING TO SEE ACTION IN THE FIRST 30 DAYS. >> NOW, WHAT WOULD BE YOUR BEST ADVICE FOR THE NEXT FEW WEEKS? IT TIE OR SELL? >> WELL, IT'S KIND OF LIKE GOING TO STAGE. SHOULD YOU BUY GAS OR WAIT FOR THE PRICES COME DOWN? SO IT DEPENDS ON IF YOU NEED GAS ARE NOT. IF YOU DON'T NEED TO SELL IN THIS MARKET. I MEAN. THEN DON'T IF YOU AND THE PEERS KIND OF THE LINE IN THE SAND. JENNIFER, IF SOMEONE IS PURCHASE BEFORE 2022, IT DOESN'T MATTER. THEY'RE GOING TO SELL THEM, MAKE A LOT OF MONEY. IN FACT, PRICES ARE UP. LIKE I SAID, THEY'RE UP 40 OR 50% SINCE 2002. SO THOSE SELLERS HAVE A LOT OF EQUITY. THEY CAN IF THEY SELL, THEY'RE GOING TO HAVE MONEY NOW WHERE THEY GO NEXT. YOU KNOW, IT'S TOTALLY UP TO THEM. IF YOU OWN OR PURCHASE AFTER 2022 MOST LIKELY THE MARKET HAS SLIPPED SINCE THEN. SO YOU MIGHT HAVE TO BE CAREFUL ABOUT SELLING. YOU MIGHT ACTUALLY OWE MORE THAN YOU EQUITY IN YOUR HOME. SO AND THAT'S THAT LEADS TO A QUESTION. PEOPLE TALK A LOT ABOUT IS ABOUT FORECLOSURES, PRE FORECLOSURES AND THAT MIGHT PUT YOU IN KIND OF A PICKLE WE SAY IN REAL ESTATE. >> DO YOU HAVE ANY DATA ON THE FORECLOSURE NUMBERS? THIS 1ST QUARTER, WHETHER THEY'RE UP OR DOWN IN FLORIDA? >> THEY'RE EVEN IN CURRENTLY THERE ARE UP, BUT NOT SIGNIFICANTLY. THERE'S THERE'S NOT A LOT OF OF OF FORECLOSURE PRE FORECLOSURE ACTIVITY RELATIVE TO WHAT WE'VE SEEN IN THE PAST. I MEAN, YES, THERE'S A FEW EXTRA MORE FORECLOSURES RIGHT NOW. AND IF YOU'RE GOING TO SEE THAT NUMBER INCREASE BECAUSE PEOPLE NEED TO SELF AFTER PURCHASING AFTER 2022. AND THOSE PEOPLE ARE ARE ARE FORECLOSURE PRONE. SO YOU'LL SEE THE NUMBERS GROW, BUT IT'S NOT A SIGNIFICANT NUMBER. >> NOW AT THE CONFERENCE, I KNOW YOU ARE HEARING FROM SPEAKERS FROM ALL OVER THE COUNTRY AND A HOT TOPIC IS HOW ARTIFICIAL INTELLIGENCE IS BEING USED IN THE INDUSTRY. CAN YOU JUST GIVE US AN IDEA OF HOW YOU'RE USING IT IN YOUR BUSINESS? >> SHORT. >> IN OUR IN OUR EVERYDAY BUSINESS. WHAT WE'RE USING AI FOR IT IS A LOT OF MORE MARKETING MARKETING. COPY. IT'S BEEN GREAT TO UNDERWRITING DESCRIPTIONS ABOUT A PROPERTY BECAUSE WE IT LISTS A LOT OF PROPERTIES OR LATER WE KIND OF GET INTO A RIGHT ABOUT JUST DESCRIBING A 3 BETTER TO BATTLE WITH THE OPEN FLOOR PLAN. I HAS BEEN USED MORE FOR TYPING AND FOR ANSWERING QUESTIONS. ALSO FOR THE CONSUMER. I MEAN, THE CONSUMER'S ASKING AI A LOT ABOUT THE PROCESS ABOUT NEIGHBORHOOD BACKGROUND. MAYBE SOME MARKET STATS AI IS NOT IN THE NEGOTIATION PROCESS AT THIS TIME. MAYBE IT NEVER WILL BE IN THIS. NOT IN THE SALE PROCESS. I HAS BEEN USED PRIMARILY IS SUPPORT. WITH A COPY MARKETING. >> AND ANSWERING QUESTIONS IN THE OTHER PIECE OF WISDOM YOU'D LIKE TO SHARE WITH OUR AUDIENCE TO HELP SELLERS AND OR BUYERS AT THIS TIME. THEY'RE JUST THEY'RE JUST EGALITE ON THE MARKET. >> YEAH, YOU KNOW, THERE'S PROBABLY ABOUT 8 OR 10,000 DIFFERENT ROLES THAT AGENTS OF SOUTHWEST FLORIDA. CHANCES ARE. YOU MIGHT KNOW ONE AND THAT PERSON, IF HAS SOME ABILITY IN SOME IF YOU DON'T HAVE SOMEBODY WITH SOME EXPERIENCED AND FIND SOMEONE BECAUSE SOUTHWEST FLORIDA IS A GREAT PLACE TO LIVE. THERE'S A LOT OF PEOPLE THAT ARE WANTING TO MOVE HERE. THAT NUMBER IS GOING TO INCREASE AS WE MOVE FORWARD BECAUSE WE OFFER 3 THINGS. EVERYBODY'S LOOKING FOR WATER WORK IN THE WAY OF LIFE. AND IF YOU DON'T HAVE A RELATIONSHIP WITH AN AGENT, YOU LIKE INTEREST. FIND ONE. AND IF YOU DON'T HAVE ONE, I'LL RAISE MY HAND ALL APPLY FOR THE JOB. >> WELL, THANK YOU SO MUCH FOR JOINING US TODAY FROM PUERTO RICO. HOPE YOU LEARN MORE AT THE CONFERENCE AND APPRECIATE YOUR TIME.