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Has Palm Harbor Real Estate Stabilized Yet?

by Doug & Gwen Campbell at Sun Bay Associates

Has the Pinellas County real estate market stabilized yet?  The honest answer should be "Who knows?"  The numbers are giving us clues that just maybe, the Pinellas County real estate market has stabilized or at least started to stabilize.  The number of single family listings for year on year in June has decreased to 4,655 from the previous year of 6,479.  This represents a 28.2% decrease in single family listings in 2011 vs. 2010.  The number of Pinellas County single family home sales year on year for June went down to 786 from the previous yuear at 802.  This represents a 2% decrease in unit sales for 2011 compared to 2010.  All in all, an optimist can see that inventory is dropping to a manageable volume, from the high of 11,226 listings in March of 2007.  That month saw only 687 single family homes sell, an absorption rate of only 6%.

The absorption rate for Pinellas County in June 2011 was 16.9%.  This means that 16.9% of all single family home listed in Pinellas County in June actually sold.  The year on year absorption rate for June 2011 is up from 12.4% in June 2010.  This means that the inventory of houses is decreasing.  A small irony is that despite the decreased inventory, the mean sold prices of single family homes decreased by 2.2% in June 2011 from June 2010.

The median price for single family homes sold in June 2011 was $132,000.  The median price in June 2006 for single family homes was $238,000.  Thus, as every home seller can attest, single family home median prices have dropped by about 44% since 2006.

Now, for those sellers who are thinking that they can just ride this out for another couple of months and sell for a higher price.  My opinion, and that of many, many very knowledgeable people, is that if you do not need to sell now - DON'T.  If, as life happens, you are in a situation where you need to sell your home, swallow the bitter pill and put it on the market at a fair market price.  Doing so will net you the most money possible in the quickest time frame.  Hoping to get a price much above market value will continue to cost money and lead to a stale listing that does not sell quickly and not for the best price possible. 

What you "need" to get or "want" to get from the sale is not relevant to the market of today.  Take what the market will give you, and move on with your life.

 

Short Sale, Pre-Foreclosure - It's the Market Reality

by Doug & Gwen Campbell at Sun Bay Associates

What is up with this so-called stabilized market in real estate?  The number of houses sold has been increasing recently, although the gross dollars has decreased.  That says very clearly that prices are still moving downwards.  A large component of this in the marketplace is the short sale, or pre-foreclosure.  Many people believe that when a property is in a short sale situation that it is a firesale.  Not true.  The banks are looking to get as close to fair market value as possible.  The better the price a house sells for at short sale, the less money the bank loses when they "forgive" the debt to the homeowner.

Real estate agents who have earned the Certified Distressed Property Expert (CDPE) designation have received rigorous training in the short sale process to come to as good a conclusion as possible for all parties involved.  The homeowner is out from under what is often a crushing debt obligation, the bank can take the non-performing asset off the books and lend money again, and the new buyer is getting a home at a good bargain, often at a price at or just below market value.  Certainly they are buying a home that a couple years ago may have sold for a much as 40% more.

If you are in a short sale or pre-foreclosure situation, or know anyone who may be, find a realtor who has earned the CDPE.  This level of expertise will guide you through the short sale process.  According to the Distressed Property Institute, CDPE agents close 85-90% of the short sales they take.

 

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Photo of Gwen and  Doug Campbell - Sun Bay Realty Group Real Estate
Gwen and Doug Campbell - Sun Bay Realty Group
at Keller Williams Realty
30522 US Hwy 19N, Suite 107 S
Palm Harbor FL 34684
Doug's Cell 727-741-4189
Gwen's Cell 727-741-7260
Fax: 888-447-7908