There is no doubt in anyone's mind that real estate around our nation is in a state of diress. However, we have to remeber that it is also localized! The trends in south Florida and California are not going to directly reflect the market here in Tallahassee. I feel pretty fortunate to be working in a market that is still seeing bidding wars on some homes. Our seller's are being educated on pricing and condition, and if you want to attract this kind of activity, you have to be in the bottom third of pricing and top third of condition.
Also, it seems that buyers are starting to regain confidence in getting financed. I am hopeful that this trend will steadily continue!
Until next time......
Kierston Schultz/ 294-0777
3 Comments on Our Local Market by Kierston Schultz
The root of problem in real estate is that prices are still way too high. Affordability is still out of reach for most families. From 1900 to 2000, for almost 100 years, median home prices were selling at 3 times median family income.
High home prices will do two things:
1. increase competitions in home building industry, thus more supplies, more home being built
2. buyers will pull back, less demand because home prices gone up.
Law of economics will determine an ideal price in any market. Home prices are coming down because they went up. Just like night is follwed by day, then day is followed by night. Home price will be selling at 3 times median income again.
Buying a home is not an investment, it should never be treated as investment. it's a place to live. An investment is something can generate income for you. Bond-- pays interest every day, or a company in which it makes money for you. Home is a commodity, can be built, raw lands can be converted to buildable lot. Old Bull shit- they ain't make more of it. Just look around, we have plenty of land to build on it. less than 1 % of lands in the US are used for residential or comercial purpose. Less than 1 %.
it will be hard to selling something worth 250,000, at the price of 400,000. When prices of home in Tallahassee return back to 2000. I will be buying.
There are plenty of buyers out there, me included, at the right price of course.
Yes, instead of realtors whining about how lousy the real estate market is. They should educate sellers to price correctly. Instead of price to sit, they should have homes price to sell.
During the housing bubble, 30% home sales are for investment and second homes, 20% of home sales are subprime. Now the bubble is bursted, We still have sales volumes at 50% of what was.
To move the inventory, Poeple must quit denial. Lower interest rate will not save them. Lending standard are much tougher. less people can qualify for a loan now.
Look around MLS listing, home prices are still price too high. Home price in Tally is overpriced by at least 30%.
I totally agreed with Jerry...some homeowners are still dreaming of that big return. They need to wake up and smell the roses...with gas and food prices keep going up recently, which families have the money to buy a bigger house. All extra from the monthly budget will need to be hold tightly rather than going out and get a bigger house. Therefore, the market will see a decrease from second home buyer while the first time buyer will not be able to get the loan they want. Therefore, small houses might bet the move for those who have children and need to go to good zone schools while the rest of those who are dreaming of selling the home beyond $200,000 will have to keep holding on....
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The root of problem in real estate is that prices are still way too high. Affordability is still out of reach for most families. From 1900 to 2000, for almost 100 years, median home prices were selling at 3 times median family income.
High home prices will do two things:
1. increase competitions in home building industry, thus more supplies, more home being built
2. buyers will pull back, less demand because home prices gone up.
Law of economics will determine an ideal price in any market. Home prices are coming down because they went up. Just like night is follwed by day, then day is followed by night. Home price will be selling at 3 times median income again.
Buying a home is not an investment, it should never be treated as investment. it's a place to live. An investment is something can generate income for you. Bond-- pays interest every day, or a company in which it makes money for you. Home is a commodity, can be built, raw lands can be converted to buildable lot. Old Bull shit- they ain't make more of it. Just look around, we have plenty of land to build on it. less than 1 % of lands in the US are used for residential or comercial purpose. Less than 1 %.
it will be hard to selling something worth 250,000, at the price of 400,000. When prices of home in Tallahassee return back to 2000. I will be buying.
There are plenty of buyers out there, me included, at the right price of course.