Rolling back the years in pricing

The latest market statistics are out for Manatee/Sarasota counties for December.

For buyer's crack open the champagne. For seller's time to rethink your pricing.

For single family homes the prices have dropped to the lowest since April of 2002 according to the latest market report from the Florida Association of Realtors as reported in the Sarasota Herald Tribune.

The median home price is now $160,000, a 35 percent drop from the same month a year ago when the median home price was $246,900.

According to the report we had the fourth largest drop in the state.

The bright light in this is that sales were actually up three percent over last December. With prices like these, no kidding!

Listing agents often talk to sellers who refused to set a realistic price and their homes are still on the market year after year with a number of different agents.

The seller's didn't hear what they wanted to about price so they keep going through agent after agent hoping for someone willing to pay over market value for their listing.

A lot of them are now trying to short sale or may have even gone in to foreclosure.

For seller's when your agent says drop the price. You should be asking should I drop it even more, not saying that you don't want to give it away.

You're not giving it away you are trying to sell it.

All the best
Greg Owens PA
Keller Williams Realty of Greater Manatee
941.932.6343
greg@teamworksfla.com

Stop the madness

A colleague brought up an interesting point to me today.

Our Manatee County commission is still spending a lot time and effort on affordable housing issues.

Lets bring everyone up to date. There is a lot of affordable housing in our community now due to all the foreclosures and short sales.

If the commission doesn't start tackling the foreclosure issue they won't need to worry about affordable housing. The commissioners will be out of a job or working for free because the tax base will have fallen so far we won't be able to pay them or their staff.

If they are waiting for Divine intervention, a federal government miracle or some other form of exterior help they need to get over it.

Don't get me wrong. Heck, I like selling foreclosures and my clients like buying them.

But if we don't stop the downward spiral of housing values in the county, which is what all these foreclosures and short sales are doing, we're going to have a lot more problems than affordable housing.

All the best
Greg Owens PA
Keller Williams Realty of Greater Manatee
941.932.6343
greg@teamworksfla.com

Multimillion dollar Palmetto

This sleepy hollow we call Palmetto never ceases to surprise me.

Much of it has an old Florida feel to it. Spanish moss hanging from the trees down quiet side streets in neighborhoods running along the Manatee River.

Is there wealth in this town? You betcha. But for the most part it is not that in your face McMansion wealth.

You need to look around a bit and when you know where to go you will find those multi-million dollar mansions just down the road from old Florida smaller homes.

I saw one such mansion this week. Three stories, about 10,000 sq. ft. beautiful interior and a bar on the third floor to die for.

To boot the home looked west on a bay on the Manatee River which would give you an unobstructed view of the sunset every night.

The price tag was a tad over $4 million.

Around here for the same style home a couple of miles away in Sarasota or even across the river on Riverview Blvd. you know they would be asking a whole lot more for the same view and size.

So for the discerning buyer looking for a quiet neighborhood tucked away from it all it just might do the trick.

All the best
Greg Owens PA
Keller Williams Realty of Greater Manatee
941.932.6343
greg@teamworksfla.com

The market turneth

If your listening to the local media about the housing market in our community your pretty much a couple of months behind.

National media, forget it.

I speak from experience of being journalism for a couple of decades.

You want the news here it is.

If you were looking for that bargain home with the great price and location under 200k in Manatee County, well you right now are probably with a month of losing your opportunity.

As of 12/08/2008 according to Trendgraphix there was a 7.9 month supply of single family homes over 100k and under 200k in Manatee according to pending sales.

Under 100k generally speaking you are either giving up desirable location or the homes condition will need significant work or a combination of both.

A buyer's market is anything over nine months of supply, neutral six to nine months and under six months a seller's market.

There has been a 171.1 percent increase in pending sales of homes over the past year in that 200k and over 100k price range, 46.8 percent increase in solds more than 23 percent drop in inventory.

A lot of numbers right? What it means to you is we're now in a neutral market in that price range and heading towards a seller's market.

A couple of factors over the next month or so will determine how strong the market will get under 200k. First is the moratorium on some foreclosures.

If Fannie Mae and Freddie Mac continue to stop some of foreclosures in that range and continue on programs to work out financing for homeowners with the lenders then that will help tighten up the inventory.

Much of great bargains have been foreclosures. Take those out of the equation and your bargain hunting in the under 200k range will become a long term safari.

Even now the competition is fierce with multiple offers and clients clambering to find the best homes in that most desirable of price ranges.

All the best
Greg Owens PA
Keller Williams Realty of Greater Manatee
941.932.6343
greg@teamworksfla.com

What the crystal ball says

The economic guru's have been out in full force lately.

Nationally in the housing market depending on whom you listen to we will recover or we won't recover in the latter part of 09.

Locally the Manatee/Sarasota County it may be some recovery in the latter part of 09 a possible dip again in 2010 and then a stronger recovery according to one recent economic prediction I read.

Hm mm, let me look at all my statistical data, market reports, knock on wood and gaze into my fuzzy coffee mug.

My prediction, a lot of well priced, good location homes will sell this year and a lot of overpriced homes will not.

Yep, from Longboat Key to Terra Ceia in Palmetto I predict we will have sales.

Will prices climb. Not sure yet and it depends what level of home you are talking about.

We are seeing that 100 to 200k single family home market moving briskly. Great deals with a lot of inventory in good condition, foreclosure or not, with good locations. This won't last of course as the inventory gets bought up.

Once you get above that level the sales drop the months of inventory on the market climbs.

There are no simple solutions in life but here is what this market is all about, great price, great location home will sell there are buyer's out there, qualified, pre- approved, ready to go for homes in every price range.

Overpriced homes in every price range will continue to say on the market, month after month after month.

All the best
Greg Owens PA
Keller Williams Realty of Greater Manatee
941.932.6343
greg@teamworksfla.com