Prediction: Prices Will Decline

The Wall Street Journal has reported that David Wyss, the well-respected chief economist at Standard & Poor's Corporation, has predicted that real estate prices will decline next year in areas that are currently overvalued. Overvalued areas include Florida, California and the northeastern United States. Other areas where Wyss expects price declines are places which are especially susceptible to economic weakness, such as the Great Lakes states.

So far, almost all of the "experts" are predicting that real estate prices are going to decline in Florida. A few of the predictions I've read call for some very slight price increases, but most of those predictions come from people who are associated with the real estate industry in some manner so their opinions must be considered suspect.

To get property sold today, sellers need to deal with the "new normal" of today's marketplace. Price the property realistically, not the way it would have been priced a year ago. Market it aggressively. Offer meaningful incentives to attract buyers and cement the transaction. Be prepared to negotiate with qualified buyers. Be patient.

For more information on the Tampa Bay real estate market, visit my website at www.thestpeterealestatesite.com.

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