Throughout our analysis of real estate activity in Florida, trends show that the market for single-family homes peaks when families want to settle in for the back-to-school season.
Therefore, it makes sense that the market would have more activity in the spring and through June and into mid-July.
Single-family home sales begin to slow a bit while families are getting children ready for school and the final vacations are taken.
When the first snow falls up North, the seasonal rental market begins to boom and the condo/townhouse market activity increases as the winter residents flock to Florida.
Now for the facts (as I see them), in the single-family residential market:
--- There are 6,001 active single family listings in Brevard County today. Since January, 2,879 homes have sold.
If sales continue at this same rate throughout this year and into 2009, it will take more than a year to sell these homes.
--- Today, there are 957 single-family homes under contract. The marketing time could be reduced to less than one year for a "balanced market" if homes under contract continue to increase and close as scheduled.
This number can be skewed by homes that remain under contract for an extended period of time, such as lease-options and lease-purchases common to this market.
Generally speaking, I could deduct 25 percent from the number of homes currently under contract and still contend that this real estate market is in the process of change.
A balanced market is when the inventory of homes and the buyers who close on a purchase are equal.
When the number of buyers exceeds the number of homes on the market, a balanced market changes into a seller's market, and that is when market appreciation begins.
This change is still down the road but the balanced market may be the light at the end of this tunnel.
The over $300,000 market is a more than two-year market but this too, has significant properties under contract and as the lower priced homes sell, the ripple effect heads to the next increase in price.
The higher priced market in the over $700,000 price range is still saturated but an increase in movement is reported.
The luxury market, although not reporting any significant decrease in pricing , is very slow moving. Those in the luxury market appear to have the staying power and are not inclined to reduce their prices to achieve a sale.
The real estate markets are slow turning markets as compared to the stock market with it's daily volatility. Patience and price reductions are the keys to selling today.
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