Peaks, valleys continue

The flurry of action continues in today's market.

Reports in some beachside areas show three times more contracts on existing properties in the most recent 30-day period.

Think of this: We were in a market with an absorption rate --that is, the time it takes to sell an existing inventory of homes -- of two to three years.

If the action continues at the same pace as in the past 30 days, the absorption rate could shorten to about one year in some areas.

Buyers who have been searching for their dream home need to focus and commit or they might lose the property they've been hoping to buy.

Time on the market does not dictate that the home is not valued properly.

Sellers have had to adjust to the decrease in value as indicated by the dropping of the home's listed price over the period of time on the market. Sellers who delayed in reducing their price might have missed the opportunity to sell for a higher price as the market was dropping rapidly.

Many sellers have turned down prices higher than their current list prices.

If the seller has reduced his/her price over the period of one or two years, the price may now be ready to sell -- still with some negotiation.

Where are we headed?

Not so fast, I do not believe that this action can continue at this same rate for the next year.

I think that we all know that, even in an active market, there are peaks and valleys.

There is a flurry when spring arrives, and families look to move over the summer. There is a typical slowing when the children get ready to begin school after summer vacation.

There are popular vacation months where sales slow. And we all know that when the first snow falls up north, the phones begin to ring in search for properties in Florida.

Right now, I see this market as sizzling.

I see buyers viewing less of a selection for their dollars.

The best-priced and nicer properties will be sold, but there will be properties on the market.

Buyers will watch the sold properties for comparison and will be reluctant to offer more than recent recorded sales indicate.

Therefore, my forecast is this: Continued action, but at a realistic and more consistent pace.

A balanced market is in our future. Market appreciation will come in pockets of areas that show less of a selection, as in the market price of $700,000 to $1,000,000 and in specific areas of newer, more custom homes if there is not an oversupply in a specific neighborhood.

There now exists the possibility of future appreciation or limited selection.

Sell low, buy low.