Here is the real estate data through the end of May for the market...
Sales continue to lag previous years and you can see how we are down. Sales are occurring, but still substantially below historical rates.
Re-sales, which are non-new construction housing, are continuing the 4 year decline in volume. Pricing does seem to be stabilizing but, the market is still fragile and price sensitive.
There are reports of bottlenecks forming in the local mortgage market as underwriting loans becomes more and more difficult. Loans are receiving a stringent review causing closing times to increase. Historically, closings take approximately 30 days, but Federal disclosure changes which are to begin the end of July are creating extended closing times approaching 45 days. The new requirements are not officially implemented until the end of July, but lenders are incorporating these standards now.
Local news of FSU reportedly preparing to downsize 400 employees has created a bit of a chill in the local economy. FAMU and TCC are expected to have to make reductions in force as well. Obviously, this creates a tense situation where people who would otherwise be motivated to move forward in acquiring new housing to wait until the exact economic damage is revealed.
On the bright side, mortgage rates remain low, the $8k tax credit will push buyers to move before the November 30 expiration and the flow of students will begin to occur in early July. The return of students always bolsters the economy as they come with money from home that will be spent locally.
In summary, to sell a home in this market it must be a high value proposition. Inventory is high and competiion is fierce, pricing has to be on the mark.
For buyers this is a unique market providing greater opportunity than available in many, many years. Working with an experienced Realtor, a buyer will find outstanding value.
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Looking for a Tallahassee Realtor? Are you searching for a seasoned real estate professional that knows homes in Tallahassee and the real estate market and can get the results you desire? Are you in the market to buy or sell a home in the Tallahassee, Florida area? Let me put my knowledge and experience to work for you.
My goal is to help people find the best home for the best price with the most protection and least amount of stress possible. If this sounds like what you want, please allow me the opportunity to earn the right to serve your real estate needs. Call me, Michael Lee today at (850) 339-9346.
Michael Lee
Tallahassee Realtor
Homes in Tallahassee
Piney Z Specialist
www.tallahasseerealestatetoday.com
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