Yes, it is a great time to sell, actually sellers should expect TOP DOLLARS in the next trimester. In Real Estate market, as any other market, prices change based on supply and demand of the product. In this case, homes.
In our market, the supply of new homes is represented by the New Listings, while the demand is represented by the Pending Listings (homes that are under contract and closing soon) and the Sold Listings(definitively not available anymore). Utilizing the weekly data provided on their Market Watch Chart from the Mid Florida Multiple Listing System (MLS) for the second week of March 2018 (1) , adding the Pending Listing (5900) and Sold Listings (3176) and subtracting the New Listings (5527), we obtain that the current demand of homes is 64% higher than the supply. Inventories are historically low. It is an economic basic principle that supply is lower than demand, the market itself push the prices to an increase. Therefore, it is the perfect time for Sellers to list their properties and get TOP DOLLARS.
As a recommendation for the buyers, only 15% of the properties negotiated last week had been sold with a price increase. While 85% had been sold with a price reduction. Sellers are less greedy than in the last 12 months, and have been trying hard to keep the negotiation with buyers, even if it means reducing the expected profit, as in most of the cases they still have a margin to be flexible. According to the Fear and Greed Index chart, what emotions are driving the market now? (2) the Market tendency is leaning towards the Fear, (39/100) where 0 is extremely Fear and 100 is extremely Greed. Even with historyicall low inventories, buyers have more power of negotiating price compared to a year ago when sellers were extremely Greedily, (64/100).
Once again, Florida Real Estate market keeps demonstrating its correlation with economic and demographic external factors, different from the country internal policies. The US Dollar lost 19% against the Euro last week. But Venezuela announced a 99.6% of devaluation, and Brazilian Real appreciated 12% vs the US dollar in the last month. However, Foreign National Loans are still in high demand and lenders are getting very creative with new financing options, Florida Real Estate market continues proving to be the strongest investment alternative for the well-informed investor.
Weekly Market Watch from Mid Florida Multiple Listing System (MLS) (1)
Fear and Greed Index chart, what emotions are driving the market now? (2)