According to figures supplied by the Greater Orlando Association of Realtors Mulitple Listing Service for July, 2007, only 4 percent of all homes listed in the M.L.S. actually went into pending status for the month. What is happening to the other 96%? Wow, if you’re a motivated seller, you’d better price more competitively than most are.
One thing that most buyers have in common in this current market is that they all want the best deals. They don’t look at the houses that are priced higher. Sellers often make the mistake of not looking at thier direct competition. If their Realtor is not providing them with the comps, they should at least visit sites like www.Realtor.com, or a real estate agents web site that has all the MLS listings like my own site www.MyOrlandoAgent.com to view other homes that are similar to thiers. It’s not enough to price homes at the same as others for size, area, amenaties, etc.. You have to be the best deal to get the buyer to even look at the house let alone make an offer. As a full time agent here I’m amazed that the sellers don’t get this. It’s really just basic supply and demand, marketing 101.
I do feel that the general home seller public are not quite aware how bad the market really is right now. On the other hand, a buyer should be delighted, so many choices and favorable interest rates which are returning to the lowest we’ve seen in over 50 years again. The rates dipped as low as 5.5% 2 years ago when the market was hot. Feds are meeting again next week to discuss lowering the rates again, so we could see rates go below 6% on a 30 year fixed rate which would make the homes even more afordable to buyers. Most of the buyers that I’ve been working with and talking to lately are reluctant to move forward for fear that the market may dip further. I believe there are 1000’s of buyers out there right now just waiting to hear the word that the market has bottomed out. Well, I’m going to say it here and now…. The market has bottomed out. There, I said it.
All the signs of a market bottoming out are present, an influx of investor buyers who are low balling listings. Honestly, there may be some more down turn before the upswing if the we start seeing more preforclosure and forclosure listings. Mike Pappas, owner of Keyes Real Estate in South Florida has seen many preforclosure listings hit the market in the Miami area. Miami has much more inventory and thier market dropped about a year or so before Orlando’s. Miami, like Orlando, has an over supply of listings because of over building over investing.
“Flippers”, as they are called, fueled the past frenzied sellers market creating an oversupply of availabilities. Now that most of the contracted new constructions starts that investors bought to flip are now completed by the builders and the investors have or will close on them and place them on the market for the general public. The condo conversion developers were ramant with conversions in the past 4 years. When Miami started slowing down on thier condo sales, the same conversion develpers made their way to Orlando and created the same problem. I have seen way too many condos for sale here.
The unfortunate sellers who purchased at the peak and must now sell are sometimes forced to offer their condo for a lesser price than what they purchased for just a few short years ago. If they don’t do that, their listing will sit on the market for months and months. Up until now, the M.L.S. inventory has risen every month forcing more and more sellers to be more competitive with thier pricing than the prior months, again, forcing prices even further down. I believe that we’ll see a bunch of listings drop off the radar because there is a huge segment of sellers listings in the MLS that are refusing to lower thier price. Inevitably these sellers will not sell, thier listings will expire and they’ll wait until the market will bear a more favorable price for them to sell. Sure, some of these sellers who are not merely trying to test the market and those distressed sellers who can not afford thier payments will fall into forclosure. Once their listing reappears into the MLS as a bank owned forclosure listing, the price can be higher becuase buyers seem to gravitate to anything that is marketed as “bank owned” or “forclosure”. I’ve seen this so many times, buyers will inadvertantly pay more for a home just becuase of those certain marketing catch phrases.
New England, where the housing market crash hit first, has seen a turn around already. Prices have risen as much as 4% in the last several months, signaling a tell tale sign that the market may turn here as well soon. Orlando’s job market is even better than it was 3 years ago, more jobs are being created and more baby boomers are moving down to buy a home near Disney.