National Housing Market and Florida Real Estate-What You May Not Know
Is now a good time to buy?
An uninformed buyer may have some pre-conceived notions about the Florida Real Estate Market, however I suggest looking at the statistics for our housing market, versus the National Averages.
According to the Florida Realtor Association, statewide year-to-date existing home sales in Florida showed positive momentum in October: 143,398 single-family existing homes sold for a 7 percent increase in price over the same period a year ago. Nationally in the U.S. there was a –21% decrease in sales, versus only a –1% decrease in Florida.
The buyers who believe that the next house they will see will be a better deal could be missing out on taking advantage of great opportunities. Here in Tampa, Fl we do have buyers that believe this, however the reality is that sellers are holding out to get fair market value, which has decreased on average 40% since the housing market boom.
When buyers make a ridiculously low ball offer, they may find themselves in a bidding war situation. This most frequently occurs in the 150K or less price range. Bill Dallas with Prudential Tropical Realty in Tampa, Florida said “Buyers feel like every property, regardless if it’s well priced to start with, should sell for a huge discount. Real Estate Agents should be telling buyers if it’s a good price to begin with, then don’t expect a low ball offer to be accepted”.
In my experience, the market is being driven by the banks selling short sales and foreclosures. Banks are doing their due diligence using comparable sales to determine what fair market value is, and usually don’t negotiate much more than 5% to 7% on price.
In the Tampa Bay Area, 52% of all sales were distressed properties. 30% were foreclosures and 22% where short sales in the month of September. The remaining 48% of home sales are “regular sellers” who have to compete.
The deals of the century are here, and with an increase in sales, we’ve got the activity needed to stabilize the market.
By Rae Anna Conforti, Realtor-Prudential Tropical Realty