The State of the Market

What is really going on in this market? Well, there are several factors contributing to what I see as a general slowdown in the real estate market. Have you seen the signs of a slowing- notice the length of time homes stay up for sale, and open the paper and see how many homes are advertised as "reduced." Typical of this season, the market has slowed down and buyers seem to be a little more scarce than they used to be. I fully expect "season" (October to April) to change things drastically, but I wonder how much of the hype will be residual from last year. Sarasota will remain in heavy demand, but maybe the market will bear a slightly more level playing field this year instead of favoring the seller almost unilaterally.

What does it all mean? Everyone in the industry is trying to catch their breath after a dizzying run. Sellers are realizing that their has to be some logical basis for the price they are charging, and buyers are realizing that the negotiating process does indeed exist. We are going to see a drop in For Sale By Owners and Realtor relevance is going to comeback into the picture. I think Realtors will be needed more for marketing and networking to move housing inventory. Also, over-leveraged investors might be in for some foreclousres if prices don't inflate another 30% this coming year. I would still feel confident to purchase, but buyers need to rethink their strategy if they are banking on huge property price gains again. I hope this is helpful. Email me with your comments, good or bad, at drew@srqlife.com.