Sales Volume Up, Prices Drop
Sellers need to take note of this. The St. Petersburg Times reported in the December 11th edition that in Hillsborough County (Tampa), home sales rose 6 percent in November as compared to November of 2007. In November, 2007 there were 977 sales; in November, 2008 the sales figure rose to 1,036.
What sellers need to realize is that the average home price dropped with what the newspaper describes as a "thud" during the past year. The year-to-year price drop was 27 percent. It fell from an average of $250,282 down to $182,313.
The Times wrote that distressed properties -- short sales and foreclosure sales -- drove the sales volume increase provided they were priced low enough. According to the newspaper, 300 of the 1,036 sales were all cash transactions.
What does a 27 percent drop in value really look like? If you have a house for sale and it was properly priced last November for $300,000, it's market value today is likely to be about $219,000. That's a big drop, but that's where things are today. And, that's why we are seeing so many distress sales as mortgages are oftentimes higher than present market value.
Sellers should keep these statistics in mind. Overpricing a house in today's market ensures that it will not sell. There are buyers out there, but they are buying only the properties whose prices reflect current market values -- not last year's market value.
If you're a seller who has had your property on the market for a long time, my advice is to have your real estate agent or a certified appraiser develop an accurate market value for your property based on today's pricing structure. Then, re-price your property so it is competitive in today's market place, and make sure your agent is very aggressive in implementing a first quality marketing plan designed to bring maximum attention to your property from today's buyers.
For more information on real estate in the Tampa Bay area, visit my website at http://www.thestpeterealestatesite.com/.
What sellers need to realize is that the average home price dropped with what the newspaper describes as a "thud" during the past year. The year-to-year price drop was 27 percent. It fell from an average of $250,282 down to $182,313.
The Times wrote that distressed properties -- short sales and foreclosure sales -- drove the sales volume increase provided they were priced low enough. According to the newspaper, 300 of the 1,036 sales were all cash transactions.
What does a 27 percent drop in value really look like? If you have a house for sale and it was properly priced last November for $300,000, it's market value today is likely to be about $219,000. That's a big drop, but that's where things are today. And, that's why we are seeing so many distress sales as mortgages are oftentimes higher than present market value.
Sellers should keep these statistics in mind. Overpricing a house in today's market ensures that it will not sell. There are buyers out there, but they are buying only the properties whose prices reflect current market values -- not last year's market value.
If you're a seller who has had your property on the market for a long time, my advice is to have your real estate agent or a certified appraiser develop an accurate market value for your property based on today's pricing structure. Then, re-price your property so it is competitive in today's market place, and make sure your agent is very aggressive in implementing a first quality marketing plan designed to bring maximum attention to your property from today's buyers.
For more information on real estate in the Tampa Bay area, visit my website at http://www.thestpeterealestatesite.com/.
-30-
posted by Terry Ward at 3:25 AM
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