"It's a buyer's market! It's a buyer's market! It's a buyer's market!" It doesn't seem to matter how loud or often we shout it out, there still aren't many buyers. But if you have been thinking about buying a new home in Florence South Carolina or the Greater Pee Dee Region of South Carolina, this is one of the best buying opportunities in the past 50 years. As you can tell from the 2008 market summary chart I prepared, there are some very interesting patterns beginning to develop that suggest it's time for buyers to get off the sidelines and take advantage of market conditions.
The first thing I want you to notice is that the widest gap between homes listed and homes sold in the Greater Florence market was last April. At that time there was well over a full year's inventory homes, which clearly shifted negotiation leverage to the buyer. For many reasons (the decrease in new construction inventory being one), we may not see that wide of an inventory gap during this downturn again.
Secondly, notice how the gap has narrowed and begun to stabilize, signaling a potential bottom in the housing market. Currently there is a 9.8 month inventory to choose from. If that figure holds through Spring (when most new sellers enter the market place), then I will be more optimistic about the beginning of a housing recovery in 2009. If that happens while you are sitting on the sidelines, you will watch the best buying opportunities pass you by.
There is an old saying in real estate that says, "You make money when you buy a house not when you sell it." The savviest of buyers are making money now! By the way, if you want to take advantage of current market dynamics to purchase a newly construction home, you better not wait too much longer. This inventory is steadily shrinking as fewer and fewer builders pull new housing permits. Your best opportunity to make money here will be over the next six months.
For more information about the Florence housing market, go to my blog titled Florence Market Looks Good for Buyers. In this blog you'll find a chart of month to month ratios between listings and sales in our area.
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