With inventory High, price reductions on the rise and sellers starting to panic, I would say that it is leaning more in favor of the buyers right now. I see less offers over the asking price. And with the market starting to become more realistic in returns I dont see the where some sellers are going to make out much better by waiting longer if the return is going to be only 6%. That means that whatever they wanted to get into is up the same amount likely. I think when homes sit for more then 75 days its is a sign that the market has taken a huge turn and that buyers will have the leverage at the buying.

Just my thoughts on the market and economy. I have a feeling that we will see homes sitting on the market for 4-6 months by next year if not priced properly. Its all a trend though and in the end it sorts out.

I agree about the property taxes and the insurance companies.

Great blog

My last purchase was my primary 2 days before wilma and my taxes went up t imes what i was paying, purchase price and house was higher.

Sounds like your market is similar to ours in Las Vegas. Sellers need to understand that until an offer is accepted these gains are only on paper. By not pricing competitvely they put more and more of those gains at risk.

John,

I consider our market for most people selling simular to Vegas, in this way....an investor or owner looking to make a quick killing is a speculator , so I consider that gambling at the tables.....HOPE that they will throw the dice and come up with a winner.

Sellers are seeing reality here at the beach - we are statistically seeing the same amount of sales as the past even though our inventory is way too high. Buyers are able to walk if a seller doesnt bite on the low offers- too many properties to choose from! The motivated sellers are creating a stabilization.  I am seeing appraisals coming in low and mls price reductions on alot of property (or they withdrawl)

I am ready to capture the expired listings from the agents unable to get their sellers in the real estate ballpark.This cycle is coming back to our comfort zone and I am ready!

Michele,

Not only are prices starting to stablize, I mentioned to a few sellers that they can ask whatever they want and go under contract for whatever they want , but if the buyers bank brings in an appraiser who refuses to go against their guildlines, the deal might fall through if it does not appraise.

Neal, given this type of real estate climate are you still buying houses to rent?  Or do you think the gluttony of homes on the market and how many sellers are "giving away their homes" will diminish the rental prospects?

Mario,

I am looking to buy, but we have had about 5 prospects , but didnt go through with them based on a few things that were not feesible to us,first too many problems with the property even if we didnt renovate, the cost would leave us with no spread as well as one ,i saw atleast 3-4 homes on every block for sale, or the comps just do not justify.

I would tell you if you buy , buy low priced properties,example,$200k or lower if you can find them,if you buy a million dollar property, there is more chance your carrying costs will kill you just to make a gamble to make the big spread, i like the smaller spreads ,i can have a few of them and also 1 or 2 larger and come up with the same spread, and there is less downside and stress to carry it.

unfortuantley our clients are very stubborn and are easily persuaded by the media. 

Eddy,

Thanks for your reply, welcome to the wonderful world of real estate!

Most clients are somewhat influenced by outside sources, but I think it is more because they are not on the streets like our industry people are, they just are influenced by those other sources IE the media and or the friend or relative who has become the expert!

Did you see the Palm Beach Post today? (Oct 1). the headline was "Nobody's Market--Homeowners and buyers are being squeezed again--this time by taxes and skyrocketing insurance". It is not unusual for people to pay $12-20K before they touch their mortgage. Something need to be done in Florida!

Jay and Linnea Hanleyl

I try not to read too many articles because they all seem to be the same, I think buyers and sellers are being influenced from other sources such as the media for one and the relative who all of a sudden became the "real estate expert"

I think its cyglical and now is going to be like this for quite some time , hopefully in the next 6-8 months more of them will realize that the party is over for a while unfortunately, I for one as you know nuy and sell my own , but realize how painful it must be to have to be more patient when selling if you want the cake and eat it too.

Too many sellers in todays market suffer from TLTL.  Their reducing their price Too Little Too Late (TLTL).  They are  expecting to rake in the high appreciation from last year in todays market.  Most of the sellers I see on the market now start there house on the market based on 2005 year end prices.  By the time they reduce their price to be competitive they have lost most of their prospective buyers.  Hopefully the sellers will catch on soon!

My partners and I have a few other sayings we have to add into our carrying costs... youll love to laugh..

MD which stands for Market decline ,BB for blood bath and finally

MAD,which stands for mortgage approval dimentia!

David Knox's video named "Pricing Your Home to Sell" is an excellent illustration to provide the sellers before you present them with a price valuation at the time of taking the listing

Stephen,

I like that model but the only issue is if they give you enough time to play it for them before they throw you out, sometimes you only have 20 mins to give them everything before they ask the two main questions, how much are we going to make and how much are they going to make!

Good Blog, lots of good comments.  I too am in South FLorida and notice the inventory glut we have. 

Florida is still strong in job growth and Broward County is considered "fully employed" (less than 3.2% unemployment).  This bodes well for the housing market except when the market is flooded by sellers, likely due to investors wanting to sell before the "bubble" bursts like the media has palyed for a long time. 

The media and the resulting panic is to blame for a lot of the supply problems we have in my opinion.  But if you look at history, the reality is most markets are simply returning to more normal rates (both appreciation and time to sell).  Rest assured, the market will become more stabilized, just like economic cycles. 

Robert,

Thanks for your comment and compliment.

I have noticed most of the replies are saying the same, too much media influence, as far as the rate of employment, I think that figure includes all the people becoming realtors!! LoL!

Robert,

Thanks for your comment and compliment.

I have noticed most of the replies are saying the same, too much media influence, as far as the rate of employment, I think that figure includes all the people becoming realtors!! LoL!

Lee,

It actually is alot worse then when I first wrote this blog.

But ......I have faith the market will at least level off, the problem is all the listings that are current should take at least a yr before they sell, and that is if.....and I mean if no additional inventory comes on the market,which we know will not happen.

Michelle,

Thanks for stopping by and reading an old blog...I guess the link revived it:)

David,

I just hope some of them decied not get foolish.

Esko,

Look when I wrote this..I predicted this...weired. Thanks

Vincent,

I'm walking away to them more often now.

Ines,

What a joke...I wrote this right from the heart...not even knowing what a feature was...it was absolutely a prediction at the time and wouldn't you know it...it is true today!

Thesa,

This was my very first post...I actually didn't even know what a feature was or what I was doing...I just wrote it during a time when we were buying property...funny how it was predicted to still be true! Thanks for stopping by!