I Wonder Why They Call it That?

It has come to pass in the Greater Pensacola Area that we are officially in a "Buyer's Market". But, why do "they" call it a buyer's market when clearly the sellers are the ones that own the houses and have them for sale?

Today, May Day of 2007, there are 6,987 properties listed as "Active" for sale in the Pensacola MLS. That is about a year's worth of inventory. That means that if not a single additional house were listed it would take about a year to sell all these homes at the rate we normally sell houses around here. A year. In fact our average rate of sale this past 12 months was closer to 550 closed per month. So, really it would take more than 12 months just to sell what we already have.

If you are a buyer here today you should be thinking "Bargain". Within that 6,987 properties there are some sellers that really want to sell - I just said that 550 ARE selling each month. Also within that 6,987 are sellers that HAVE to sell. And, for the seller, the way to sell in a market like this must be to lower the price until you attract those buyers.

So the buyers are still out there and they are still buying, but the smart buyer is taking his/her time and plucking those bargains from this overgrown vine. And, that's why they call it a Buyer's Market.

But, take heart sellers:
David Kane, BS from the Haas Center for Economics at the University of West Florida published in February 2007:
"Though the housing market continues to slow in the NW Florida region (and nationally) many analysts see signs of “leveling” and expect sales to start to pick up early next year. There are other reasons to be optimistic; for one, interest rates remain fairly stable and relatively low. Also, slightly lower home prices may be enticing some previously reluctant buyers into the market. Finally, according to Dr. Wayne Archer, director of the University of Florida’s Center for Real Estate Studies, “even if a sharp downturn in the housing market occurs as some analysts predict, Florida will be less affected by it than other states because of the insulating effect of it’s high population growth rate.”"

Dr. Rick Harper, Director at the Haas Center at University of West Florida predicts a gradual appreciation of house values this year. In the Spring 2007 economic report (ftp://143.88.89.2/NW_Florida_Economy/NW_FL_Economy/2007/spring07.pdf ):

"Despite the downward trend of the past year, interest rates have remained relatively low at about 6.25 percent, almost unchanged from a year ago. Further, a recent outlook from the National Association of Realtors (NAR) is that there should be a, “steady rise in existing home sales following the fourth quarter.” Finally, according to Dr. Wayne Archer, director of the University of Florida’s Bergstrom Center for Real Estate Studies - “One important indicator of the real estate market is occupancy rates, and these appear to be stable or increasing in most markets…” He also noted that Florida’s economy is relatively healthy and growing, providing a strong foundation for the state."

So buyer's have an opportunity here in Escambia (the 96th fastest growing county in America) or Santa Rosa (the fastest growing county in Florida) counties to invest well and prosper. And sellers; take heart. There are 550 houses sold every month and, if predictions hold, more in the near future. If your house is priced right - it will sell.