Here's What An Over-Supplied Market Looks Like

The media keeps reporting that the real estate market is over-saturated right now. That there are just too many properties on the market. It's a bad case of over-supply and under-demand.

But what does that really mean if you're trying to sell a house or condo?

It means you are probably going to spend a long time trying to sell your property.

How long?

Well, the Pinellas Realtor Organization has some statistics that might shed a little light on that subject. What they have done is to project the time it will take to clear out the present inventory based on current sales rates for various price categories. Now, this does not mean your house will take this long to sell. You might get lucky and sell your place the first day it is on the market. But what this shows is that given the current rate of sales within a specific price category, this is how long it will likely take to clear out that inventory at today's sales rates.

Let's start with single family homes ...

• Under $120,000 -- 7 months
• $120 - $150,000 -- 13 months
• $150 - $200,000 -- 18 months
• $200 - $250,000 -- 22 months
• $250 - $350,000 -- 20 months
• $350 - $500,000 -- 32 months
• $500 - $750,000 -- 33 months
• $750 - $1,000,000 -- 46 months
• Over $1,000,000 -- 88 months

Here's how things look for condo sellers ...

• Under $120,000 -- 17 months
• $120 - $150,000 -- 21 months
• $150 - $200,000 -- 21 months
• $200 - $250,000 -- 30 months
• $250 - $350,000 -- 33 months
• $350 - $500,000 -- 45 months
• $500 - $750,000 -- 58 months
• $750 - $1,000,000 -- 27 months
• Over $1,000,000 -- 20 months

So, let's say you've got a single family home that you want to sell for $475,000. You need to know that in Pinellas County there is a 32 month supply of homes in that price range.

If you want to sell your $245,000 condo, keep in mind that there is a 30 month supply of condos in that price range.

By the way, these figures are based on data that was accurate as of January 31, 2008.

So, how do you shorten that time?

Start with pricing your property at the lowest possible price among the competitive properties in your neighborhood or condo community. We live in a highly price sensitive marketplace where only the best values are being sold. You have to make your property a great value in order to attract buyer attention, get showings and see offers.

Second, make sure you have a highly aggressive marketing plan. It won't do you any good to have a well priced property -- a great value -- and not have buyers know your property is for sale. Make sure your real estate agent is using a wide variety of effective marketing tools to spread the word about your property.

Third, make sure your property is in tip-top condition. Buyers today want to make certain the property was well maintained by a caring owner. To get top dollar you have to be in top condition.

Finally, be patient. Things look like they are picking up a little. I'm starting to see more activity from buyers.

For more information on real estate in Pinellas County, please check my website at http://www.thestpeterealestatesite.com/.

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