Real Estate Blog - Is it a buyers market or a sellers market?....it's neither.

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Is it a buyers market or a sellers market?....it's neither.

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The one thing that I have noticed is that sellers in South Florida aren't happy that buyers are not coming out to see their homes. Getting a contract on their property is not like it used to be. And there are the ones who will become upside down are considering taking their homes off the market for sale and renting them out instead.

That's right!....I said renting them out. "That's right folks." More and more Homeowners are starting to get nervous about the activity they are getting on their properties and that seems to be causing a stir in this very uncomfortable market for sellers.

The new "hot commodity" in South Florida Real Estate seems to be the rental market....and it looks like it is heating up. I have also talked to a lot of agents in my area and they are all telling me the same thing. They are closing more on rentals then on sales.

The reason why this is happening is because the are many homeowners who bought property during our most recent Real Estate boom and now are feeling the effects of a souring market. Some are in dire need to sell but the problem is many of them paid more than the property can command in todays market and owe the banks more than it is worth. I see banks having tougher standards and deals never making it to the closing table.

I have a few listings who came to me at a later date and requested we try to rent after they figured out they cannot sell. The adjustable rates loans are kicking in and they are struggling to stay afloat. Even if some of them can rent out the property.... they are still losing money due to the high expense of carrying it.... and are basically buying time to try to hold onto the properties instead of facing foreclosure. There not too many options other than a deed in lieu or refinancing at a reasonable rate. The really unfortunate can only hope the banks would even consider the deed in lieu and save their credit from being damaged longterm.

So if you are in any of these situations you might want to consider renting your property out and hoping the market comes back and start building up some equity.

As you Realtor it is my job to help you to make the best decision possible....."protect your investment."

Neal "The Real Deal" Bloom

Posted by Neal Bloom-Realtor ® Assoc.-CRS-Weston FL on 07/18/2007 09:58 PM

Comments (29)

south florida real estate, real estate in south florida, sellers in south florida, buyers

Originally posted at: Weston Florida Real Estate Blog, Neal"The Real Deal"Bloom : Is it a buyers market or a sellers market?....it's neither.

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29 Comments on Is it a buyers market or a sellers market?....it's neither.

JUL

2007

Neal, I have read a few Posts on here lately stating the same thing about your market. I am just glad that I am not seeing the same thing around here. Hopefully things will turn around for you guys soon!!!

I see this happening in our market as well. A lot of homes are for rent and for sale at the same time.

We are getting an overabundance of listings, prices continually dropping and are staying on the market forever! Buyers are not even kicking tires...

Neal,

That is sometimes the best solution, rent the house for the duration and then sell when the market has recovered sufficiently. One of the considerations is that can you rent it for your mortgage payment? If not, how much negative cash flow is it? Then you compare that with possibly selling it now for a modest loss. That's what it is, weighing your options. Good post.

Hey Neal, in my area, it IS a buyers market, but I guess it depends on how you look at it. We have many listings, REO's, foreclosures, short sales etc. Buyer has lots of choices, and that does not include all the new homes provided by the builders. Buyers market, Sellers market...it is what it is, at least there's a market!

JUL

2007

At least you have a niche and can stay afloat while helping your property owners.

Nice to see you are in the writing mood again.... nicely done :o) You are right it is not a buyers or sellers market - I have the displeasure of meeting with clients tomorrow that is pissy because they have only had 9 showings and no offer.

I am glad my clients are having to face that here. Our market is still climbing. Hopefully we will see more money from the slower markets coming to Hawaii.

You are the 'Real Deal' bro. I think Patience is a Virtue and everything will get back to where it needs to be. I sometimes think this market, across the board, is a test of the strong....to see who will survive.

Neal, I am glad to see that I am not the only one noticing this. I have a friend who luckily sold his town house. Then turned around in the same development and rented one for less than half of what he was paying to own it.

George,

This is a new market we are experiencing ...so renting seems to be somthing that is an option only to those who can somehow continue to carry.

Michelle,

It is probably the only option before losing the home.

Kat,

Find me a real buyer..I'd love to sell them sometihng:)

Esko,

One owner that I just rented out...his can only command 1500 and his expenses are 2400. But he can still carry it.He is relocating to your town and will be renting there for a year. He flies planes..so he can move around.

Brad,

It is a great time to buy if you can hold. I have a friend who will most likely be buying something just because he has to do a 1031 exchange.

Sally,

A niche ...but I still would rather sell a few as well.

Thesa,

My sellers are calling me every day...when is there going to be a call? I keep drilling it into their head that it is not even the price now...there are no buyers in his range.

Randy,

Hawaii is a very expensive place to live ..but if I was a buyer..i would love to pick up something if the price is right.

Jason,

People fail to realize how good and spoiled we were in the last 5 yrs getting these 25% return...they are not used to getting 5-8% ...which is actually a normal market.

Matt,

It would help if something we have listed would maybe close and close on-time:)

Neil,

Hey I hear about people renting all of the time, I have clients saying they are selling and they are going to, go out to rent for a couple of years, it's seems to be the thing to do..

Tom

Hey Tom,

It really is the new thing here in Florida.Rentals are the new market here.

I agree, rentals have picked up dramatically and I dont see a slow down unless there will be some sort of tax releif or home prices will need to come down a little more .

Our MLS allows us to put in rental properties and we are seeing a ton of them now. We call the sell lords, because they really want to sell but will take a rental to help ( hoping the market will come back)

Neal,

I'm seeing the same thing up here lately, we shall see what happens. :)

Hi Neal, I believe things will turn around. I actually think things are where they would be if market had not had such a soar in prices. Renting does seem to be the thing. I guess because of insurance and our tax problems here in Florida. I would rather be selling too.

Missy,

It will..by the way..I hope your daughter is ok..I did not know about this until I read someone else's post. I apologize for not knowing sooner.

Hi Suzanne,

It is all over the US.

Dianne,

I think so too...jusy not sure how long it will be.

JUL

2007

Neal, we are going through the same pains as Florida. We too see renting of homes here in Indianapolis as the alternative to selling at this time. We hope the market will change, and soon. Nice post and I am glad to hear we are not the only ones going through this.

JUL

2007

Bob,

First off...let me say that I have been trying to repsond to you via email..but your address does not work and it keeps coming back. As far as our market...it has turned into a total renters paradise:)

Neal: Twice this week, I've talked to two promanate lenders who've been around a long while say they have NOTHING going. And haven't seen things like this in YEARS...and nothing good on the horizon. Scary!

Kat,

It is a totally different market now..there will be more and more proerties put up for rent instead of for sale..thats how it is here

Neal, More specific, is it that the snowbirds are just not coming down to Florida or is it across the board. We have a second home market here where I work and I am not seeing the usual amount of sales of second homes and recreational property, mostly local to local residential.

Mary,

No...I'm afraid it is across the board..too many people in trouble looking for a sensable way out of the large debt..while we wait for some buyers to appear.

JUL

2007

Wow!..I guess everyone else is doing so well in RE that they were not interested in what type of market we are all in?

NOV

2007

Hey Neal, I know this was posted back in July, but somehow I missed it until just now. You are right on the money with this post. I know a few Condo Sellers who are in this situation and, unfortunately, their Associations don't allow rentals, so they don't even have that as an option. For others, renting is definitely a great option that I also recommend. Keep up the great work!

Vicky,

Condos are usually harder for screening..they should consider changes so that they do not leave so many units empty...it might help save the attractiveness to buyers that want to come in and actually live there.

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