Gordon & Christine Dey
Inventory remains at record levels and the percent of homes available for sale to homes sold was low with
only 6.02% selling. There were 6,230 active listings with 859 new listings coming on the market in
October while there were only 375 sales in October. It appears much of the market is still well overpriced
as indicated by the record number of listings that FAILED TO SELL. They averaged $294,524 compared
to homes that sold with an average sales price of $172,122. The median sales price was $147,000. With
only 6.02% of the available inventory selling in October, sellers accepted on average $9,480 lower than
their list price to get their homes sold and many agreed to pay much of the buyer’s closing costs which could
be an additional $4,000 to $10,000 or more. This number is actually worse than it reflects as the last price
reduction vs. the Seller’s initial list price was sometimes 30% higher and is not reflected in the LP/SP ratios.
It appears Sellers putting their properties on the market in October understand it is going to take an
aggressive pricing strategy along with aggressive marketing advantage to get their homes sold not just listed.
These new sellers on the market have listed their homes on average, $67,042 lower than the average Active
List price. Sellers that Sold in October averaged $122,402 lower than the average homes that Failed to
Sell. Sellers need to have full service marketing exposure and the best price in their neighborhood to get
their home sold as only 6.02% are selling. Listing high to test the market and dropping the price after a
couple of months is not a good strategy in this declining value market as you will be chasing declining
values each month. For buyers the market could never be better. A huge selection of fine homes to
choose from, interest rates still at great levels and many motivated sellers making their properties available at
lower prices and offering favorable terms. Sellers are having to compete with a new trend which in my
opinion has contributed to our record number of foreclosures, the extremely high number of vacant
homes for sale. In September 2,259 or 36% of the listed homes for sale that were previously occupied
are now vacant. 167 of the Vacant Homes or 48% of the TOTAL Homes Sold in September were
vacant homes showing buyers are looking for DEALS. Vacant home sellers are lowering their prices
drastically and this is going to increase the declining market values. Currently Florida ranks 3rd
in the nation
for foreclosures. These vacant homes could quickly turn into more foreclosures and push values down
further in the coming 3 to 6 months making the seller’s situation even worse than it is today. Many sellers
have tried to rent but that market is saturated too causing rental rates to drop below their mortgage payments.
For more details please review the following charts below.
Lastly the Banking crisis is likely to hurt sales further. Experts are now saying the real estate market
may not recover until 2010 to 2012.
Exit Realty Advantage has Sold 36% more of it’s Listings Taken this year than Pensacola Association
of Realtors Average (PAR)
Exit Realty Advantage Agents have saved their Sellers over $2,291 this year based on their Average
List Price to Sales Price compared to the PAR Average.
Don’t forget - Free Over the Net Home Evaluations at www.GordonAndChristine.com
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