Bidding Wars Break Out in Florida

Bidding wars are returning to Florida’s housing market as investors and first time buyers compete for homes and condos listed under $200,000.00. The race for properties is reminiscent of the boom years from 2000 to 2005 when multiple offers on all types of dwellings helped push prices to record highs. Back then, a dearth of properties for sale  had buyers rushing to scoop up anything they could find, for fear that prices would keep rising.  Now, frustrated with a bloated inventory of  foreclosed homes in disrepair, buyers go to great lengths when they spot a house or condo in pristine condition.

I just sold 5 homes in Meadow Pointe this week, 4 were in pristine condition and buyers came every day until they sold. Good price plus good condition equals a sold home.

Call Liz today at 813-956-6487 or email: homenet@gte.net  

When buyer’s are finding a good listing they are pouncing. Low mortgage rates and $8,000.00 first time home buyer rebate are fueling sales of entry level homes. For investors they make the best rentals.

Because of mounting job loss and lingering recession, the bidding wars are mostly confined to deeply discounted prices. With more foreclosures coming, prices still dropping but a slower price the recovery is not wide spread.

MARKET TREND

Several positive trends were reported today by the board of Mid Florida MLS. Inventory is down, sales are up, number of months of inventory is down.

In June of last year in the tri-county area there were almost 39,000.00 properties for sale, June 2009, a little over 29,000.00. Homes closed in June 3,065 and homes under contract 4,233. Available months of inventory 9.6. Coldwell Banker only has 4.3 months on inventory. Coldwell Bankers, has the largest number of listings in the  tri-county area but the best turn over rate.

Average days on market were 106 and the sold/list ratio was 93%. The sold to list ratio refers to the difference between the asking price and the actual sold price.  If a home is priced for today’s market the number of days on market and the sold/list ratio decline.

Market advantage still belongs to the buyer with more inventory than buyers to absorb it. Price trend is depreciating, for sales but for less dollars.  New Tampa home prices are down 18% year over year.

Sellers Struggle to Compete with Foreclosures

The Key to selling a home in a down market in New Tampa is setting a realistic asking price. For homeowners who saw their values surge during the housing boom this is a hard thing for them to do. In many cases sellers might be better off pricing low, which could potentially lead to multiple prospective buyers bidding on a property.

The danger in today’s market is if you are overpriced, even in the smallest percentage, what you are doing is helping  your neighbor sell their house. Buyers try to leverage the market to score an exceptional price even if  the home is already priced at current market value. Buyers are concerned that with a market that has not bottomed the great value they get today won’t look so great six months from now. 

Don’t assume if you price high, you can always come down once an offer is made. Price too high, and offers won’t get made. Prospective buyers will move on thinking the seller is unreasonable. Buyers want to see something competitively priced to give them a reason to make and offer. 

The most important time for a home is it’s first two to three weeks up for sale. That’s when the most  potential buyer activity will take place on a home. That’s why it really needs to be competitively priced. 

Let me do a comparative market analysis for you to determine the best listing price to sell your home in an unstable market. Starting the process right with the best agent will lead to success. 

Call Liz at 956-6487 or email: homenet@gte.net