If you follow my blog, you will also be able to follow the market statistics and full reports provided by the Pinellas Realtor Organization. We had an interesting discussion in my Keller Williams office in regards to the assumption of a sellers market. To our surprise, we never thought to break it down by price point to really find out if it is for everyone.
The definition of a sellers market is dependent on the months of inventory. with 0-3 months of inventory, it's a seller's market. There are not enough homes to satisfy the demands of buyers and homes typically sell quickly. A buyers market is 6+ months of inventory where there are more homes to choose from and they can be picky with the bounty of homes. The demand from buyers has decreased. A balanced market is 4-6 months of inventory which means we really are in a transformation stage to go in either direction - sellers or buyers market. And just like Goldilocks, the market is just right with inventory for the buyers vs. sellers.
In the reports, there is a break down by price point. And depending on what a buyer can afford, there may be more competition in one price point than another. It's easy to calculate: # Units Sold To Date/# of months (7 - July) = # Units Sold Per Month; #Units Listed/# Units Sold Per Month = Months of Inventory. Months of Inventory is if no other homes were added to the market, it would take that X amount of months to sell everything. These numbers were pulled from the July 2013 report which you can access through my previous post http://largo.patch.com/groups/becky-paones-blog/p/july-2013-pinellas-county-real-estate-stats.
So lets see what these look like:
Single Family Homes -
$29,999 or under -
- 30 listings, 133 Units Sold Year to Date/7 Months = 19 Units Sold Per Month
- 30 Listings/19 Units Sold Per Month = 1.57 months of inventory. SELLERS MARKET
- 52 listings, 142 Units Sold YTD/7 Months = 20.29 Units Sold Per Month
- 52 Listings/20.29 Units Sold Per Month = 2.56 months of inventory. SELLERS MARKET
- 49 listings, 214 Units Sold YTD/7 Months = 30.57 Units Sold Per Month
- 49 Listings/30.57 Units Sold Per Month = 1.6 months of inventory. SELLERS MARKET
- 78 listings, 243 Units Sold YTD/7 Months = 34.71 Units Sold Per Month
- 78 Listings/34.71 Units Sold Per Month = 2.25 months of inventory. SELLERS MARKET
- 74 Listings, 321 Units Sold YTD/7 Months = 45.86 Units Sold Per Month
- 74 Listings/45.86 Units Sold Per Month = 1.61 months of inventory. SELLERS MARKET
- 84 Listings, 279 Units Sold YTD/7 Months = 39.86 Units Sold Per Month
- 84 Listings/39.86 Units Sold Per Month= 2.11 months of inventory. SELLERS MARKET
- 81 Listings, 285 Units Sold YTD/7 Months = 40.71 Units Sold Per Month
- 81 Listings /40.71 Units Sold Per Month = 1.99 months of inventory. SELLERS MARKET
- 94 Listings, 229 Units Sold YTD/7 Months = 32.71 Units Sold Per Month
- 94 Listings /32.71 Units Sold Per Month = 2.87 months of inventory. SELLERS MARKET
- 134 Listings, 505 Units Sold YTD/7 Months = 72.14 Units Sold Per Month
- 134 Listings/72.14 Units Sold Per Month = 1.86 months of inventory. SELLERS MARKET
- 241 Listings, 607 Units Sold YTD/7 Months = 86.71 Units Sold Per Month
- 241 Listings/86.71 Units Sold Per Month = 2.78 months of inventory. SELLERS MARKET
- 156 Listings, 491 Units Sold YTD/7 Months = 70.14 Units Sold Per Month
- 156 Listings/70.14 Units Sold Per Month = 2.22 months of inventory. SELLERS MARKET
- 135 Listings, 452 Units Sold YTD/7 Months = 64.57 Units Sold Per Month
- 135 Listings/64.57 Units Sold Per Month = 2.09 months of inventory. SELLERS MARKET
- 105 Listings, 328 Units Sold YTD/7 Months = 46.86 Units Sold Per Month
- 105 Listings/46.86 Units Sold Per Month = 2.24 months of inventory. SELLERS MARKET
- 231 Listings, 571 Units Sold YTD/7 Months = 81.57 Units Sold Per Month
- 231 Listings/81.57 Units Sold Per Month = 2.83 months of inventory. SELLERS MARKET
- 209 Listings, 424 Units Sold YTD/7 Months = 60.57 Units Sold Per Month
- 209 Listings/60.57 Units Sold Per Month = 3.45 months of inventory. BORDERLINE SELLERS MARKET
- 237 Listings, 511 Units Sold YTD/7 Months = 73 Units Sold Per Month
- 237 Listings/ 73 Units Sold Per Month = 3.25 months of inventory. BORDERLINE SELLERS MARKET
- 169 Listings, 278 Units Sold YTD/7 Months = 39.71 Units Sold Per Month
- 169 Listings/39.71 Units Sold Per Month = 4.26 months of inventory. BALANCE/TRANSITIONING MARKET
- 121 Listings, 158 Units Sold YTD/7 Months = 22.57 Units Sold Per Month
- 121 Listings/22.57 Units Sold Per Month = 5.36 months of inventory. BALANCE/TRANSITIONING MARKET
- 108 Listings, 102 Units Sold YTD/7 Months = 14.57 Units Sold Per Month
- 108 Listings/14.57 Units Sold Per Month = 7.41 months of inventory. BUYERS MARKET
- 76 Listings, 71 Units Sold YTD/7 Months = 10.14 Units Sold Per Month
- 76 Listings/10.14 Units Sold Per Month = 7.5 months of inventory. BUYERS MARKET
- 49 Listings, 48 Units Sold YTD/7 Months = 6.86 Units Sold Per Month
- 49 Listings/6.86 Units Sold Per Month = 7.14 months of inventory. BUYERS MARKET
- 39 Listings, 30 Units Sold YTD/7 Months = 4.29 Units Sold Per Month
- 39 Listings/4.29 Units Sold Per Month = 9.09 months of inventory. BUYERS MARKET
- 273 Listings, 84 Units Sold YTD/7 Months = 12 Units Sold Per Month
- 273 Listings/12 Units Sold Per Month = 22.75 months of inventory. BUYERS MARKET
If you are a luxury homeowner, this news can be a little bit hard to swallow. Overall, the entire market is in a Sellers Market but, with really breaking down the price points, anything priced $600,000+ has too much inventory and not enough buyers to fill those properties. Buyers will have a negotiating edge because they can most likely find alternatives if a seller is not willing to negotiate on price. And that seller will sit on the market. Appraisers will also take this into effect when justifying your home value with comparable homes. They'll appraise it lower because there is more inventory and value usually declines in buyers markets.
Condos -
$29,999 or under -
- 78 listings, 323 Units Sold Year to Date/7 Months = 46.14 Units Sold Per Month
- 78 Listings/46.14 Units Sold Per Month = 1.69 months of inventory. SELLERS MARKET
- 162 listings, 273 Units Sold YTD/7 Months = 39 Units Sold Per Month
- 162 Listings/39 Units Sold Per Month = 4.15 months of inventory. BALANCE/TRANSITIONING MARKET
- 196 listings, 355 Units Sold YTD/7 Months = 50.71 Units Sold Per Month;
- 196 Listings/50.71 Units Sold Per Month = 3.87 months of inventory. BORDERLINE SELLERS MARKET
- 196 listings, 356 Units Sold YTD/7 Months = 50.85 Units Sold Per Month;
- 196 Listings/50.85 Units Sold Per Month = 3.85 months of inventory. BORDERLINE SELLERS MARKET
- 159 Listings, 289 Units Sold YTD/7 Months = 41.29 Units Sold Per Month;
- 159 Listings/41.29 Units Sold Per Month = 3.85 months of inventory. BORDERLINE SELLERS MARKET
- 153 Listings, 257 Units Sold YTD/7 Months = 36.71 Units Sold Per Month;
- 153 Listings/36.71 Units Sold Per Month= 4.17 months of inventory. BALANCE/TRANSITIONING MARKET
- 137 Listings, 240 Units Sold YTD/7 Months = 34.29 Units Sold Per Month;
- 137 Listings /34.29 Units Sold Per Month = 4 months of inventory. BALANCE/TRANSITIONING MARKET
- 93 Listings, 146 Units Sold YTD/7 Months = 20.86 Units Sold Per Month;
- 93 Listings /20.86 Units Sold Per Month = 4.46 months of inventory. BALANCE/TRANSITIONING MARKET
- 169 Listings, 299 Units Sold YTD/7 Months = 42.71 Units Sold Per Month;
- 169 Listings/42.71 Units Sold Per Month = 5.64 months of inventory. BALANCE/TRANSITIONING MARKET
- 150 Listings, 269 Units Sold YTD/7 Months = 38.43 Units Sold Per Month;
- 150 Listings/38.43 Units Sold Per Month = 3.9 months of inventory. BORDERLINE SELLERS MARKET
- 101 Listings, 265 Units Sold YTD/7 Months = 37.86 Units Sold Per Month;
- 101 Listings/37.86 Units Sold Per Month = 2.67 months of inventory. SELLERS MARKET
- 104 Listings, 218 Units Sold YTD/7 Months = 31.14 Units Sold Per Month;
- 104 Listings/31.14 Units Sold Per Month = 3.34 months of inventory. BORDERLINE SELLERS MARKET
- 86 Listings, 157 Units Sold YTD/7 Months = 22.43 Units Sold Per Month;
- 86 Listings/22.43 Units Sold Per Month = 3.83 months of inventory. BORDERLINE SELLERS MARKET
- 193 Listings, 327 Units Sold YTD/7 Months = 46.71 Units Sold Per Month;
- 193 Listings/46.71 Units Sold Per Month = 4.13 months of inventory. BALANCE/TRANSITIONING MARKET
- 153 Listings, 204 Units Sold YTD/7 Months = 29.14 Units Sold Per Month;
- 153 Listings/29.14 Units Sold Per Month = 5.25 months of inventory. BALANCE/TRANSITIONING MARKET
- 220 Listings, 267 Units Sold YTD/7 Months = 38.14 Units Sold Per Month;
- 220 Listings/ 38.14 Units Sold Per Month = 5.77 months of inventory. BALANCE/TRANSITIONING MARKET
- 102 Listings, 127 Units Sold YTD/7 Months = 18.14 Units Sold Per Month;
- 102 Listings/18.14 Units Sold Per Month = 5.66 months of inventory. BALANCE/TRANSITIONING MARKET
- 51 Listings, 63 Units Sold YTD/7 Months = 9 Units Sold Per Month;
- 51 Listings/9 Units Sold Per Month = 5.67 months of inventory. BALANCE/TRANSITIONING MARKET
- 32 Listings, 46 Units Sold YTD/7 Months = 6.57 Units Sold Per Month;
- 32 Listings/6.57 Units Sold Per Month = 4.87 months of inventory. BALANCE/TRANSITIONING MARKET
- 35 Listings, 33 Units Sold YTD/7 Months = 4.71 Units Sold Per Month;
- 35 Listings/4.71 Units Sold Per Month = 7.43 months of inventory. BUYERS MARKET
- 16 Listings, 18 Units Sold YTD/7 Months = 2.57 Units Sold Per Month;
- 16 Listings/2.57 Units Sold Per Month = 6.23 months of inventory. BUYERS MARKET
- 19 Listings, 18 Units Sold YTD/7 Months = 2.57 Units Sold Per Month;
- 19 Listings/2.57 Units Sold Per Month = 7.39 months of inventory. BUYERS MARKET
- 72 Listings, 32 Units Sold YTD/7 Months = 4.57 Units Sold Per Month;
- 72 Listings/4.57 Units Sold Per Month = 15.75 months of inventory. BUYERS MARKET
What's interesting about the condo market is that it's fairly stable, but once you get to $700,000+ it's a buyers market all day long.
So recommendations. For ALL Sellers. Price your home correctly. The market will always have properties coming on and off. Your goal is to accurately price the home right with the comparable homes in the neighborhood and other data that affect buyer decisions. You want to be the shining star or appear as the best deal in your price point.
Over pricing a home in a sellers market or a buyers market can cost you the most. If a home has been on the market more than 30 days, buyers get a sense that if it was a good home it would have been gone by now. They start to question what's wrong with your home if its not sold. When you price it right, you can stick to your guns on price when you get an offer. Many times, pricing it right can get many buyers through the door and can possibly create an auction-type atmosphere where people clamour and bid up the price.
If you would like a free, no obligation appointment to find out where your home lies, please contact me at 727-216-9253 or RebeccaTheRealtor@live.com.
You can also get powerful information on my website TheTruthAboutYourHome.com
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