Home buyers getting back in driver's seat

As real estate listings soar, sellers have to downsize high-profit dreams

By MICHAEL POLLICK
michael.pollick@heraldtribune.com

Kent Weaver's house in Southgate, a close-in Sarasota subdivision, had plenty going for it as a fresh listing in a hot market: good location, updated kitchen and baths, newly laid oak floors, a new roof and new windows.

But the home received a cool reception when it came on the market during the summer. It was a time when the Southwest Florida residential real estate market was making a fairly abrupt transition from a sellers' heaven to one with buyers back in the driver's seat.

Buyers have not been there for three years.

An earlier rush into speculative deals, coupled with mortgage rate spikes and hurricane jitters, has created a supply-and-demand situation where the number of active real estate listings in the region is three times higher than a year ago

The number of closings, meanwhile, seems to have slowed down more than normal during the autumn.

That combination has put downward pressure on prices.

Keller Williams agent Steve DuToit listed the Weavers' house at $347,500 this summer, reduced the price to $334,500 after five weeks of lackluster interest, and finally negotiated a sale at $297,500, a full $50,000, or 14 percent, under the original asking price.

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http://www.sarasotaherald.com/apps/pbcs.dll/article?AID=/20051120/BUSINESS/511200555

The market has definitely slowed down over the alst 3 months. The number of properties on the market have increased. Everyone knew this was eventually going to happen. I believe it will be a more balanced market between the buyers and the sellers. This should lead to more normal appreciation rates of 8-12% a year.