Residential Sales Trends March 15, 2010
When we look at residential sales trends in Tallahassee, the signs are VERY CLEAR in how 2010 is going to proceed for home sellers. There are parts of real estate cycles that can be confusing, but there are also segments of the real estate cycle that is very clear and easy to forecast. This is one of those times when the "writing is on the wall."
Yesterday, we provided a real estate market snapshot on average home prices in Tallahassee which showed that the average home price had fallen to levels last seen at the beginning of 2004. Today, we are going to look at residential sales trends to see current pricing movement as well as why the market is behaving the way that it is.
Residential Sales Trends: Lower Prices Bring Higher Sales Volume
What we are seeing in the real estate graph above is the normal "turn" in a housing market. Unit sales plummeted for three years until lower prices started to entice home buyers back into the market. We will see prices continue to fall in order to maintain momentum of home sales. Prices will not begin to stabilize until we see the glut of homes reduced to where supply and demand reach a normal balance.
Other Tallahassee Real Estate Web Sites
Do you want to know more about the Tallahassee real estate market? It is not as hard as you might think keeping up with the movements in the housing market, you just have to know where to look. The following are some of the best resources that you can find on Tallahassee real estate:
- Tallahassee Short Sale Listings: Tallahassee Short Sales
- Daily Real Estate Blog (A Technorati Top 100): Tallahassee Real Estate Blog
- Current Housing Reports: Housing Market Reports
- Map Based Property Search Tool: MLS Property Search
- Foreclosure Reports: Lis Pendens and Foreclosures
- List of Distressed Properties in the MLS: Distressed Properties
- REALTOR® news and updates: Successful REALTORS®
You forsee that prices will continue fall into 2011? If that is the case than sellers need to be aware of pricing ahead of the market to attract buyers. I believe this is correct. Pricing at current market value will only have a sellers house on the market for many months, and potentially may not sell at all. As time goes buy the home will wind up being overpriced as home values continue to fall. The result will be a price reduction and then you're back to square one. Better off pricing ahead of the market and trying to get it sold quickly rather than wait it out.
That is the toughest part of pricing today "rookie." It is hard to bite the bullet and do the wise thing, but people are losing more by waiting.
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