Home prices drop 17 percent
Here is an article from the Sarasota Herald Tribune about falling home prices. I don't think anyone is too surprised about the latest median sales price data. The median sales price in the Sarasota-Bradenton market was $277,900 last month, compared with $340,700 during the same month in booming 2005.
Chad Roffers, president of Sarasota-based Sky Sotheby's Realty, said the price decline goes hand in hand with slowing sales."
An 18 percent decrease feels about right. We're seeing unit sales down by a third across the board and prices off by 20 percent from the peak in mid-2005," said Chad Roffers, president of Sarasota-based Sky Sotheby's. "We are seeing a 'liquidity point' at values similar to those that existed in the fourth quarter of 2004. Those sellers who accept that level of value are seeing action. Those who hold out for 2005 prices are not."
Chad Roffers, president of Sarasota-based Sky Sotheby's Realty, said the price decline goes hand in hand with slowing sales."
An 18 percent decrease feels about right. We're seeing unit sales down by a third across the board and prices off by 20 percent from the peak in mid-2005," said Chad Roffers, president of Sarasota-based Sky Sotheby's. "We are seeing a 'liquidity point' at values similar to those that existed in the fourth quarter of 2004. Those sellers who accept that level of value are seeing action. Those who hold out for 2005 prices are not."
posted by Marc Rasmussen at
9:15 AM
5 Comments:
Chad Roffers, president of Sky Sotheby's Realty said:
"We are seeing a 'liquidity point' at values similar to those that existed in the fourth quarter of 2004. Those sellers who accept that level of value are seeing action. Those who hold out for 2005 prices are not."
Marc, given this statement from the president of the firm you now represent, I have 2 questions. If you look at the chart for the 5 year market value change on Zillow.com for the property located at 3951 Yellowstone, (which you currently have listed for sale for $279,900), you'd see that the valuation listed for that property during the 4th quarter of 2004 was between $205,000 to $230,000.
Let's even assume that Zillow's prices were 10% low at that point. That would price this property between $221,000 to $$253,000.
Given this, do you think Zillow's appreciation values were drastically too low during the 4th quarter of 2004 or is the current asking price for 3951 Yellowstone too high ?
I really can't comment on Zillow's value estimates because I rarely use that website and have not looked at Zillow for this property.
2 nearly identical units (same floorplan views, square footage, etc.) sold with in the last 30 days. They were put under contract less than 60 days ago. One sold for $265k and the other for $270k. Therefore, I am but overpriced. 2 recently sold almost identical units sold in the last 30 days is a better way to value this property than Zillow. The asking price is $274,900. I have not changed the sales price on my website yet. Thank you for bringing that to my attention. ;-)
Therefore, I am but overpriced. = Therefore, I am a bit overpriced.
Marc said:
"I really can't comment on Zillow's value estimates because I rarely use that website and have not looked at Zillow for this property."
I mentioned Zillow because you brought that site up previously.
You also had this to say about Zillow on November 5, 2006:
"I have met with a few potential sellers in Sarasota that rely heavily on Zillows valuation of their real estate. We ultimately did not work together because I thought they were asking too much as they were following Zillows opinion of value. So far I have been right.
Whether Zillow is purposely trying to decive the public is not really my concern. I really don't know what they would stand to gain by doing that. I still think Zillow is a great place to get an estimate of value."
So you think Zillow is a great place to get an estimate but they may value properties a bit too high - and it has likely cost you some potential listings. However, consider that the current Zillow valuation for 3951 Yellowstone is $269K, so if Zillow's estimates are typically high that means ...
The RE market is dynamic and was moving quickly throughout 2004 and into the first 6 months of 2005. In quite a few areas throughout Sarasota (for both condos and single family homes), there are not enough current sales to use for comps. So where do you retrieve valuations for properties for the last 3 months of 2004 if you rarely use Zillow ?
DISCLOSURE: I have no affiliation with Zillow.com whatsoever.
You left this comment out from my Zillow post, "I have to give them credit for being in the ball park quite often with many of their valuations."
Todd said, "However, consider that the current Zillow valuation for 3951 Yellowstone is $269K, so if Zillow's estimates are typically high that means ..."
I said typically, not always. The asking price could use an adjustment when comparing to the two nearly identical units that sold within the last 30 days.
"So where do you retrieve valuations for properties for the last 3 months of 2004 if you rarely use Zillow ?"
I would the Sarasota MLS and tax records for sales information. There was enough sales data in 2004 to estimate value. Just a quick glance at the Sarasota MLS shows me there were 5 transactions in Parkstone in the last quarter of 2004. The market was moving very fast back then so you had to make adjustments in your asking price for it.
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