Housing bottoming out soon?

By
Real Estate Agent with Signature Realty Associates

Is the housing market in the Tampa area going to turn from a buyer's market to a more stable one any time soon? It seems that may be a while off. A few things have to occur first. The investors and speculators who helped drive up the demand and prices for homes the last few years have to be weeded out. Also, the foreclosure rate needs to slacken. Many of those speculators have turned into foreclosures. Builders are offering huge incentives to realtors and buyers in order to sell off inventory, undercutting the very investors, speculators, and home buyers they recently sold to. Once those situations have washed out of the market, prices may stabilize.

Also, many home sellers have become used to rising property values over the past few years and don't realize that the times have changed until they overprice their home, then don't understand why it doesn't sell. Even when their agent and the market tell them their home is overpriced, many still refuse to believe it. Until that mindset is changed, many homes will continue to sit on the market, adding to the supply.

There have been numerous stories by both national and local media claiming to know when the bottom of the housing market will be. The prognosticators continue to push the recovery further back. The bottom line is, nobody knows when it will be. As real estate agents and residents of the Tampa area, we care about what is happening locally. We see what is going on daily and can gauge where we are instead of reading about it in the local paper.

I do see a brighter future, but it will take time. We didn't get to the buyer's market overnight and won't get out it as quickly. What's your opinion?

   

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Rainer
33,323
SHAUN WREN
LICENSE IS NOT PLACED - Lakeland, FL
My neighbor accross the street has a property for sale. He listed it about 20% higher than comps in the area. He is proably making a thousand dollar a month payment. He has already dropped a bit but people that are looking at the property look at the Realtor and say . I can buy a brand new home for less. What do you do?
Jul 24, 2007 02:15 PM #1
Anonymous
Teresa Bills
That is such a common problem in our market. Competing with a builder that has inventory to move can be a struggle for the average homeowner. Basically he can adjust the price lower to match his competition, increase his incentive or sell in a different market. It sounds like your neighbor may have a vacant home on his hands (just assuming since you mentioned the payment) if the home is in fact vacant staging is a great option. The builder's have model homes to paint a picture for a buyer the average home purchased as an investment is a blank, boring slate. Another thought is curb appeal, tropical plants and various foliage are great low maintenance options that can make an ordinary house feel welcoming. As an agent I preview the homes I show to my buyers and offering the most appealing product is key to pull top market dollar. Just last week I had a relocation buyer looking in the price point up to 325,000 after seeing 18 homes I only felt comfortable showing them 5, not surprising they really liked 3 out of 5. I hope you neighbor has an agent that is pushing the reality of real estate..."What would you pay for this home at this time in the market". This is one of the first questions I ask an expired listing seller. Typically the only flaw with the agent is taking a listing at high price (agent most likely seeking exposure)then being content with at least having the listing. I work a very balanced book of buyers and sellers this allows me the opportunity to see both sides of the transaction. My best advise for your neighbor is to look at what he owes on the home, look closely at the market in the area and decide if he can compete after the local new homes drop his value more, It may just be what he needs to decide to sell aggressively or wait it out.
Jul 24, 2007 04:42 PM #2
Rainer
27,874
Darrel Quebedeaux
Evergreen Realty & Associates Inc. - Newport Coast, CA
I love the buyers market, its cleaning up lots of not so good things and if you are good at what you do you will survive it and be in position to prosper as the market swings back to speed.
Jul 24, 2007 08:17 PM #3
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Rainer
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Teresa Bills

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