Advice to sellers (Part 2) Lets add to the fact that we are now entering a real economic recession, South

Asked by Paul Estrada, Miami, FL Sun Mar 16, 2008

Florida has low paying jobs, insurance costs are insane and property taxes are out of control and what do we have? The perfect storm! Not even the Federal reserve with the interest cutting spree can’t stop this storm. Lets not mention the crippling value of our once mighty dollar is at is lowest level EVER! Sorry if I sound too pessimistic, but these are the real facts you will not hear from many realtors. So as many realtors are suggesting, low price, lower price, and lower price is the only thing that will begin to drive this market again with any luck.

Help the community by answering this question:

+ web reference
Web reference:

Answers

4
Donna Grady, Agent, Wilmington, NC
Sun Mar 16, 2008
I am not sure that you are actually asking a question. Some of the things that you are saying come straight from the media hype. Again I say that those that have owned their homes for five years or more still will profit from selling in today's market. Homeowners that bought during the higher prices and expect to sell their homes within two or three years will not profit. Especially if those buyers let the lenders talk them into interest only and no money down products that they were giving away. If they can hold on to their properties longer they will profit again. Now for the economy.... I live on the coast too. My insurance has gone up. My cable TV and internet (thank you Time Warner) has increased. Then my HVAC went out and the government decided that they can only be replaced with 13 seer or higher units that cost more than they should. My property was re-evaluated by the county tax office and yet my husband's salary has remained the same. I am in my third year of real estate. Things are not a bad as the media portrays. Yes, I know the state of Florida is having a hard time. But people will always need to sell and people will always need to buy homes. The problem started when as you said in your Part 1, people got greedy. Sellers still think that they can just put any price tag on their property and sell it. Buyers listen to the media and think that they can buy property at half-price bargain basement prices. BUT Realtors who know their market and have the expertise are simply not being listened to by the buyers and sellers. The shift in the total real estate industry - the fly by the night lending institutes, the greedy sellers, the greedy buyers, and oh yes the unprofessional Realtors - will be weeded out during this time. The lending industry and the real estate companies that survive will continue to right the market. People bought and sold homes for many years in worse markets than today's market. If I can assist you in purchasing property in Southeastern NC along the coastline or the Cape Fear River, please let me know. Everyone wants to move here. In the meantime, one of my clients has an investment property in Port Saint Lucie and several more in other parts of FL. Contact me if you want to invest in some of his properties that are on the market. I would love to help you pick up a great rental property that is in a short sale.
1 vote
Kathleen Sei…, Agent, Gainesville, FL
Thu Mar 20, 2008
No doubt that the amount of inventory out there makes this a seller''s market, but things are moving and I think you are pretty pessimistic (hoping the sellers of the home you want are reading?) j/k

Anyway, I just got this by email the other day and it is full of news about upturns in the Florida market. I haven't checked it for accuracy, but since my broker forwarded it I assume most of it is right.

TRENDS as reported from the State Capital!

- The Venice Area Board of Realtors(r) (Sarasota County)
reported 110 pending sales in February 2008 compared to 85 in January
2008. This is an increase of 29 percent.

- The Sarasota Association of Realtors(r) MLS (Sarasota County)
reported 654 sales pending (single-family and condo) in February 2008,
an increase of 27 percent over the 516 sales reported pending in January
2008. In addition, Sarasota had 418 closed sales in February 2008, up
28 percent from the 327 closed sales in January 2008.

Following is good news from other counties:
1. The number of Realtor-assisted sales pending for single-family homes
in
Lee County was 1,088 on Feb. 14, up 33 percent from 821 a month earlier.

2. The Realtor(r) Association of Greater Fort Myers and the Beach (Lee
County) had an 85.4 percent upswing in pending single family home sales
in
the last 10 weeks. The number of months it takes to sell all residential

properties has dropped to 12 months from a high of 22.98 months in
December
2007.
3. In Martin County, there were 182 pending sales on January 1. Today,
there are 345 pending sales, representing an increase of 90 percent.
4. The Emerald Coast Association of Realtors(r) (Okaloosa County)
reports
their pending home sales were 383 in January and rose to 473 for
February,
representing a 23 percent increase.
5. Pinellas County reported 600 single family units under contract in
February, up 23 percent from 489 a month earlier.
6. Marco Island (Collier County) reports pending sales numbers on March
1,
2008 at 135 while a year ago (March 1, 2007) this number was 104. Their
pending sales on January 1, 2008 were 77 and in March 1, 2008, pending
home
sales were 135, up 75 percent.
7. The Realtor(r) Association of Greater Ft Lauderdale (Broward County)
has a forecast of pending sales that is quite impressive. Their single
family pending sales (which includes condos and town homes) totaled 529
in
January but their pending inventory forecast for the month of February
is
871. That is an increase of 65 percent.
8. Palm Beach County has seen a drastic increase in single family homes
sold between January and March this year. Between January 14 and
February
14, 2008, 672 homes were sold. Between February 15 and March 10, 2008,
827
homes sold for an increase of nearly 30 percent month to month.
9. The Pensacola Association of Realtors(r) (Escambia County) reported
pending sales at 297 (includes single family homes and condos) in
January
2008. In March 2008, this number rose to 345, an increase of 16 percent.

10. The Heartland Association of Realtors(r) (Highlands County) had 10
pending home sales in January 2008 and 43 in February 2008. This is an
increase of over 300 percent.
11. The Venice Area Board of Realtors(r) (Sarasota County) reported
110 pending sales in February 2008 compared to 85 in January 2008. This
is
an increase of 29 percent.
12. Naples Area Board of Realtors(r) (Collier County) had 513 pending
sales in February 2008 compared to 413 pending sales in January 2008, an

increase of 24 percent. Also, the pending sales for February 2008 are 10

percent higher than pending sales in February 2007 (464).
13. Flagler County Association of Realtors(r) (Flagler County) did not
have any pending sale in January 2008 but had 20 pending sales from
February
1, 2008 until now.
14. The West Volusia Association of Realtors(r) MLS (Volusia County)
shows a 34 percent increase in home sales in February 2008 over January
2008.
15. The Orlando Regional Realtor(r) Association report s an increase
in pending sales in both Orange and Seminole Counties. In Orange County,

pending home sales increased by 29 percent from February to March and in

Seminole County, pending home sales went up from 331 to 404, a 22
percent
increase.
16. The Tallahassee Board of Realtors(r) (Leon County) reports an
increase in their pending sales both from a year ago and from January
2008.
Today, the pending home sales in Leon County are 410 compared to 325 in
January 2008, an increase of 26
0 votes
Paul Estrada, Home Buyer, Miami, FL
Sun Mar 16, 2008
Hi Donna, I'll be the first one to blame the media for hyping things, etc. But in this case however, the media is actually not hyping, if anything they are under hyping :). As I type this, the Federal reserve just lowered interest rates by a 1/4 point in an "Emergency" meeting (remember that they meet again this Tue) and the markets are already tanking big (Sunday night). I trade the financial markets for a living btw. Anyway, the market in NC is much different than what's happening in South Florida. You see, homes here have tripled in price in just a few years while at the same time salaries have remained steady and insurance and property tax have sky rocketed. Add to the fact that we have an epidemic rising crime problem, horrible traffic and substandard public schools and you will see why most homes are way overvalued. I will keep you in mind Donna if we decide to move up there.
Ramesh, maybe I'm exaggerating saying 99%, ok I'll say 98% :-) Seriously, some people will always be buying just like we had buyers at the peak of the market, but there is a reason why we have record levels of homes listed and unsold. The demand/supply curve has now shifted and now sellers have piled up and most buyers are staying put or are unable to buy until prices are either A. More "reasonable" or B. Inflation catches up to current price levels. Again, there will always be some buyers at current price levels, but most folks living here simply can not afford homes at these prices. And lets not even bring up the insanity of new "high-end" condos that have been built here. Of course our European friends can always take up that burden given the horrible mess the dollar is in.
0 votes
RN, , Miami, FL
Sun Mar 16, 2008
So Paul! Let's talk. Where do you want to buy, and what are you looking for (besides a killer deal)?
I'll be glad to help. You and I, though, have to come to some common ground on a couple of issues upon we may disagree:
#1 99% of all homes are NOT overpriced, because if they were, they wouldn't sell. We are selling more than 1% of homes, to be sure, so that means whatever is selling is not overpriced. "The right price" means that a buyer buys it! That's what real market value is, the price is eventually sells .. correct? So, yes you are in a buyer's market, but don't expect to go to Pinecrest or the Falls and buy any home for a 10-30% discount. What we are seeing, on the average, is about an 8% list-to-sale ratio (the difference between asking price and eventual sales price). The last two sales I made were in Pinecrest, at 3.2% list to sale, and in Coral Gables, which was OVER asking price. So, some properties ARE priced right, and will sell.
You are right that most everyone else is overpriced.
Anyway, call me and let's find what you are looking for!
786-205-1133
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more