Is it a Seller's market? Is it a Buyer's market?
If we are to go by the traditional rules of less than 6 mos. supply = Seller's market," well, then: it's a Seller's market, as we currently have a 3.72 mos. supply.
But these are no traditional times.
There is a tension here in the Greater Orlando Florida area, caused by 1) the high number of distressed homes on the market vs. 2) the low inventory numbers.
Low inventory numbers cause prices to go up (the old supply and demand rule), and our overall median price is up for March by 12.5%.
The clincher: Last month Traditional sales (Buyer/Seller, period) accounted for only 40% of the market. And while traditional homes prices are up by 3.3%, Short Sales and Bank Owned prices are down <1% and up 5.6% respectively.
Nevertheless, a traditional sale is RED HOT in this market, as buyers still long to side-step the often grueling what-if process of a Short Sale, and the home's conditional concerns of a Bank Owned property.
Where the Buyer's Market / Seller's Market question gets real sticky is when you look at the tremendous advantages Buyers have: interest rates at an average of 3.99% (really!) and FHA loan limits relatively high at $353,750.
The Buyer's additional advantage is that a Buyer can still command lower prices due to the number of distressed homes on the market, which still sells for less money than a traditional home will.
The bottom line is that if a Seller wants to sell their non-distressed home fast, now is the time to do it. You may even see multiple Offers.
The number of Short Sales on the market is expected to increase, due to implementation of better procedures and shorter promised answer times from the banks. This will heat up the competition for your non-distressed home.
If you are under water, this is also the time to get out of your distressed home, before the larger surge of Short Sales and foreclosures hits.
Technically, is it a Seller's market? Yes. But you might be hard pressed to convince the Buyer the same.
All posts are written by Dawn Deegan, Broker-Associate REALTOR®. Dawn holds the designations of Accredited Buyer Representative (ABR®), Short Sale Foreclosure Resource (SFR), and she is a Graduate of the Realtor® Institute (GRI). Dawn also holds the Transnational Referral Certification (TRC), enabling her to help in real estate endeavors world-wide. Dawn is dedicated to providing only the best possible services and expertise to her Buyers and Sellers of residential Real Estate in the Greater Orlando area. This includes Windermere, Orlando, Winter Park, Baldwin Park, and Davenport. Her emphasis is on superior delivery of sophisticated market data, quality and value to you, the Buyer or Seller. Contact Dawn Deegan at 407 286 5272 or at DawnDeegan@cfl.rr.com. Visit her at www.MakeABrilliantMove.com