Sarasota County: Incubator for National Housing Trends

August 25, 2019 Sarasota County: Incubator for National Housing Trends Back in February I predicted a Market Shift in the Sarasota County Housing Market.  Coincidentally, in the Real Estate Section of yesterday’s Herald Tribune, syndicated columnist Lew Sichelman reported nationally, what I predicted 6 months ago for Sarasota County.  It is comforting to know that by continually educating ourselves about our local market, we will have a pulse on what our homes are worth and how they are trending.  This is very valuable if you are going to sell, trade up or down.  Thinking of your home as a considerable asset in your portfolio, and as we approach the 2020 elections with market and political volatility, real estate will continue to be a primary driver for the economy.  What follows are excerpts from both articles. Market shift means price cuts By: Lew Sichelman August 2019 The housing market is definitely changing. Maybe not everywhere, at least not yet. But in most places, sellers are slowly losing their dominance and buyers are taking control. The evidence is strong: Instances of multiple offers on the same property have fallen drastically, more buyers are holding out … Houses are still selling, of course. But it’s taking longer than it used to, according to data from the National Association of Realtors.  Days-on-the-market is a key indicator of the strength of local conditions. And since the first of the year, it has been steadily rising. Unfortunately, some houses linger longer — sometimes much longer — which means sellers have to take a hard look at their listings if they are serious. Data from NAR’s 2018 Profile of Buyers and Sellers reinforces these opinions. “The longer a home is on the market, the greater the discount from the listing price,” it found. Places on the market for two weeks or less typically nailed 100 percent or more of their asking price, according to the report. Houses on the market for 17 weeks or more generally received 94 percent of their asking price. You’ll know a price reduction is necessary if no one has come to look at your home, or if you’re getting lots of action, but no offers. Also consider a reduction if other homes like yours are priced for less, if you are receiving lots of negative feedback, or if you’re only getting offers substantially below your asking price. There’s no rule of thumb about how much to cut your price. You should consult with your agent, consider any feedback you’ve been given, take a fresh look at the sales comps and proceed from there. Sarasota County: In the crosshairs of a market shift By: Robert Goldman February 2019 Housing Market Report (reproduced in part) I believe we are caught in the crosshairs of a Market Shift.  In January, Listings increased dramatically, while Sold Homes decreased, pointing to a Buyer’s Market.  Of the homes that sold, there was a slight increase in the sold price.  This may be a carry-over from the fall of 2018, when there was less inventory.  If inventory continues to increase, with fewer sold homes, buyers will be in control, and sellers will begin to adjust their listing and sale price expectations.   Sellers may have already begun the process of adjusting their expectations.  Pending sales increased dramatically in January.  Over the next 2 months, as these pending sales close, I forecast a softening on sold prices, and a lowering of list prices. So, here is my advice in a shifting market.  You need to define - What is My Objective?  How you proceed in this market is crucial.  The use of seasoned professionals with broad market expertise is very important.  There is always opportunity in a changing market.  Use this information to create a positive path or course of action whether you are a Buyer or Seller. Take advantage of the change, the market shift. If you are selling, target your objectives based on your end goal, and sell, don't hold.  Get aggressive in your pricing. If you are buying, be prudent, do your homework, learn all about the community.  Learn all about the particulars: comparable properties; function and form; architectural and design trends; square foot; price; days on market; seller motivation; upgrades; lot location --- in essence, everything that affects price, the home’s fair market value.  Most of all, buy with an eye toward resale, not just the best deal.