Wednesday, March 28, 2012

Another Article on National Home Prices

My last two blogs focused on national housing price trends and how they affect the local Sarasota real estate market.

Some brokerages seem to think that all the lovely people filling our restaurants, hotels, and beaches in season signals a return to healthier days for Sarasota's real estate market.  This overly simplistic analysis does not take buyer psychology into account, and results in sellers overpricing homes in the false expectation that values are going to be on the upswing.

Yesterday there was another article on Yahoo Finance from CNN Money showing that potential homebuyers lack confidence in the market.  This is significant because the vast marjority of home buyers in the Sarasota are come from out of state or overseas.  They read these articles and see that values in markets like Tampa made new lows in 2011.

These buyers do not have to buy, and as I blogged earlier, they are motivated by what they deem are the "best deals", whether those deals are in Sarasota, Ft. Myers, Tampa or Orlando.

Conclusion:  Home sellers, do not price your home to sell based on increasing prices, as other brokers may lead you to believe.  The national market and buyer psychology will continue to have a drag on our local real estate market for the foreseeable future.

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