Home sellers are competing for an increasingly smaller pool of homebuyers, and our recent housing market reports are providing proof that the market is going to be tough going for home sellers for some time to come.
In case you missed yesterday's blog on the rapid growth of foreclosure sales, it is worth a review. The bittersweet news is that banks are finally starting to really take action on their bad loans, but this is going to flood the market over the next 6 to 18 months with bank-owned inventory homes (Real Estate Owned or REO properties). In the simplest sense, it is like a new builder coming in and bringing hundreds or thousands of new homes for the real estate market to consume, but at prices lower than current home sellers are offering.
Pending Home Sales Show Home Sellers Plight
Even though we have as many homes on the market today as we have had all year, the market appears to be turning and the number of homebuyers is dropping. We predicted this would occur at the end of the Homebuyer Tax Credit campaign, and it is now visible in our market tracking reports.
The vertical yellow line in the real estate graph above shows the end date for the Homebuyer Tax Credit, and the beginning of the decline in home sales in the Tallahassee real estate market. Home sellers who were wise enough to price competitively back then got out of the market at a higher price than current homeowners are going to realize.
Advice For Home Sellers Who Need To Sell NOW
The pool of ready, willing, and able buyers will continue to decline as our normal seasonality kicks in. Home sellers who must sell need to take action today if they hope to get their home sold. There has never been a time in my 20 year real estate career where sound advice was needed more than it is today. Simply "listing" a home with a friend or on your own could result in significant losses. Take the time to interview great real estate brokers for the job of selling a home, it can make all the difference in the world.
We have posted two important, short videos that show what it takes to get a home sold in today's incredibly, competitive housing market. Home sellers should take a few minutes and review them before they interview REALTORS® for the job of selling their homes.
Joe Manausa, MBA is a 26 year veteran of real estate brokerage in Tallahassee, Florida and has owned and managed his own company since 1992. He is a daily blogger with content that focuses on real estate analytics and providing his clients with a tactical advantage in today's challenging market.