Real estate sales continue to diminish
Tampa Bay Business Journal – August 15, 2006
Sales of single-family existing homes dropped during the second quarter, according to the Florida Association of Realtors.
Statewide, sales dropped 27 percent, to 53,161, compared with the same period last year. In Tampa Bay, there were 10,187 sales, 31 percent fewer than last year’s 14,768.
“Sales of existing single-family homes in Florida behaved like much of the U.S. in the 2006 second quarter, with the declining strength of the domestic economy continuing to act like a stiff wind in the face of the existing real estate market,” David Scott, executive director of the Dr. Phillips Institute for the Study of American Business Activity and professor of finance at the University of Central Florida, said in a release.
The statewide existing-home median sales price rose 9 percent to $254,800 in the second quarter; a year ago, it was $234,500. Tampa Bay’s median price rose 21 percent to $232,200 from last year’s $191,700.
This environment is likely to endure across the remaining months of 2006 owing to several factors, Scott said, including the declining rate of growth in the real gross domestic product, a tepid increase in the number of jobs being created over the past three months, rising conventional mortgage rates and a rising inventory of homes for sale. He said the rising costs of gasoline and energy are starting to strain many household budgets while wages are just barely keeping up with the recent price inflation of about 3.6 percent a year.
The latest economic outlook from the National Association of Realtors notes that the housing market is in the process of stabilizing with little change in overall sales volume expected over the balance of the year. Analysts report that the level of activity remains high historically and 2006 is expected to be the third best year for existing home sales. According to Freddie Mac, the national commitment rate for a 30-year conventional fixed- rate mortgage averaged 6.6 percent in first quarter 2006; last year, it was 6.24 percent.
The Florida Association of Realtors provides programs, services, continuing education, research and legislative representation to its nearly 155,000 members in 68 boards/associations.
To view property listings anywhere in the Tampa Bay Area visit:
www.TampaBayDwellings.com
When is a contract ratified and binding? When both the buyer and seller have signed and initialed off on changes. There may be a loop hole if you aren’t careful. If the expiration date for an offer of acceptance has passed then the contract becomes unenforceable.
For example, an offer on a home is received and the buyer gives the seller until 5pm to respond. The sellers make changes, initial the changes and sign the dotted line. The seller would then put an expiration for their counter offer to the buyer, let’s say 5pm the next day. The buyer doesn’t get the initialed changes back to the seller until after 5pm. Technically, there is no obligation for the seller to go through with the offer because the offer expired.
It can also work in the reverse. The buyer’s offer expires and the seller’s think they have a contract because they signed it and sent it back. Even if the seller didn’t make any changes to the contract if they didn’t get it back to the buyer within the time specified on the contract there is no deal.
Why would this become an issue? What if the seller gets a better offer, or the buyer finds another home they like better? Both parties can miss out on opportunities.
When it comes to contracts and selling a home let the professionals handle the details. A qualified Realtor would know when a contract is binding and what the stipulations may be. Too many times there have been cases where the moving truck is coming, arrangements have been made to purchase another home or rent, and the buyer finds a way to back out of a deal at the last minute.
What are you doing differently now to sell homes than you were a year ago? Here are some posts from local Realtors.
“We are lowering prices, raising commissions and staging vacant homes. In some segments of real estate, there is 800 percent more inventory than there was a year ago.
“It is said that we have the same amount of buyers as last year, and even so, only one out of eight homes will sell this summer. We are advising sellers to make their homes as most attractive as they can, not only physically, but priced attractively as well.”
——————————————————————————–
“A year ago, we were in a seller’s market. Now we are in a buyer’s market. We are advertising more, marketing ourselves more, showing buyers more property because there is more to choose from. Buyers are now more selective.
“We are also educating more sellers and teaching them how to price realistically. A year ago, everything sold no matter what condition, but that is not the case this year. We have to teach more curb appeal now and price more in accordance with the market.”
“A year ago, we didn’t have a chance to negotiate with buyers and sellers.
“We have to educate buyers and sellers on price and interest rates.
“The real estate market has cooled down and changed. We have 18,000 homes this year on the market as opposed to the 3,200 we had last year.
“Buyers were trying to buy homes faster last year, the demand was high and the supply was low. But this year, that is not the case.”
For more tips on home buying and selling visit:
TampaBayDwellings.com
http://renohomestalk.com/ Ron Bell’s Reno, Nevada Real Estate Blog
St. Paul Minnesota-Teresa Boardman’s popular real estate blog site
North Carolina Real Estate InsiderLAND, FOR SALE, DEVELOPMENT, HIGHLANDS, LAKE GLENVILLE, SAPPHIRE VALLEY, GOLF COURSE COMMUNITIES, VACANT LAND AND LOTS, NORTH CAROLINA REAL ESTATE, EQUESTRIAN,COMMUNITIES, MOUNTAIN PROPERTY,INVESTMENT,STATISTICS, BEST RETIREMENT COMMUNITIES FOR WEALTHY, PROPERTY,TRAVELING TO CASHIERS, NC, THINGS TO DO, LIST OF COMMUNITIES IN CASHIERS, NC, RELOCATING,BEST PLACES TO INVEST IN REAL ESTATE,THE PRESERVE AT EAGLE CREST
Grow A Brain Real Estate BLOG
