After months and months of no showings on listings, things seem to be picking up here in North Florida. We are seeing more homes going in to pending and a whole lot more showings. YEA! The sellers and Realtors are finally realizing what the buyers have been telling us for months: that our prices were just too high. I have been getting price reductions from sellers like crazy, and guess what, it was a the prices that I thought they should be at the start of the listing.
It seems to me that things are moving, just not at the pace and pricing we had from a year ago. For those of us who have been in the real estate industry for at least five or even ten years, already knew that it was price that would bring this market to a screaching halt. People are only willing to pay so much for a home, and if it is not what they feel is a good value they will sit on the sidelines. If you really take out all of the active homes and look at Pendings and Solds, you might be very surprised to find that only a VERY few sold at the ultra high prices. Even I ( sometimes I think I know it all) was swayed by the active listings vs the sold listings.
I believe that 2007 is the year to get back to basics and price homes right! You have to be in the bottom third to get a home sold in this market. The consumer is extremely educated and they don't have to buy over priced homes. There is about a 10-12 month inventory in my market and there are new homes coming available daily. IT IS ALL ABOUT PRICE!