I thought I'd do a little more deep analysis after the responses to the "Under the hood of the MLS" article. I went back and pulled up inventory and sales figures for the last three spring seasons. The results were surprising. I expected to see the rapid increase in inventory but I did not expect sales in 2007 to be as strong in comparison as they were. Here goes:
Inventory of MLS properties in Cocoa Beach and Cape Canaveral
April 2005
Condominiums__420
SF homes______45
August 2005
Condominiums__443
SF homes______62
October 2005
Condominiums__558
SF homes______63
January 2006
Condominiums__785
SF homes______102
May 2006
Condominiums__1047
SF homes______138
March 4 2007
Condominiums__1023
SF homes______154
Sales from Jan. 1 through March 4
2005-Condominiums__139--SF homes__9
2006-Condominiums___73--SF homes__10
2007-Condominiums___54--SF homes__11
The shocker for me in these numbers was the constant rate of sales for single family homes. 2007 has actually been the busiest Jan-Feb season for sales of homes. Condo sales, as expected, have been in a constant decline since peaking in 2005. Another surprise is the level inventory number. We first topped 1000 in total condo and townhouse listings in Cocoa Beach and Cape Canaveral in May 2006, but have hovered around the 1000 number since while single family home numbers have continued a slow increase.
Our inventory has gone from a 6 month supply for condos and 10 month supply for homes in spring 2005 to a 38 month condo supply and a 28 month home supply in 2007.
Conclusions; If you're selling, don't despair. Sales are happening. There is just much more competition and prices have declined. Do your market analysis and be realistic with your pricing. Don't be insulted by low-ball offers. They are the norm now. Reframe your take on a low offer as an invitation to negotiate, not as an insult. Be prepared to take longer to sell unless you price aggressively to move to the front of the line. If you must sell, you cannot afford to price at or above competing properties. You must lead the pack and price under the competition, all other things being equal. Don't forget your carrying costs if you're willing to wait until you get your price. The cost of an extra 6 months selling time on a $500,000 property can easily exceed $20,000 in interest, taxes and insurance. If you want straight advice about selling your home in this difficult market, call me at 321.917.5786 or email me. Things have changed and successfully selling a home requires adapting to the changed market.
