The Greater Tampa Association of Realtors reports for June that area single family home inventory sits at 4 months. A drop of about 34% from last year. Mix in the fact that buyers are returning to the market in droves and this combination flipped the market from a buyer's to seller's in a blink of an eye.
So as a buyer entering the market, what does this mean for you?
1. Don't be surprised to find yourself entering a bidding war with other buyers
With the limited inventory and increase in buyers, it will be pretty common when finding a home that you like that there will be several others that are fond of it too. Talk with your Realtor about what will make your offer more attractive. It's not always a higher price that will win the bidding war.
2. Good, move in ready houses don't stay on the market for long so if you find one you like, nab it
GTAR reports show that in June, the median days on market for a single family home was 33 days. While the Average Days on Market was 91 days. This shows that a lot more houses are staying on the market for very short time frames, but there are some (normally distressed properties) that stay on the market for much longer. Expect the homes that are move in ready to move very very quickly if priced within acceptable market ranges.
3. You can still find good deals and can still negotiate good prices, but don't go in expecting to get below 90% of the asking price.
For the most part, you shouldn't expect to negotiate a price that is far off of what the seller is asking. Ask your Realtor to create a Comparative Market Analysis for you on properties that you are interested in, this will give you a ballpark of what comparable homes are selling for in that area. This is an extremely important step because you can still find houses that due to age or lack of upgrades or a stubborn seller are priced well above local comparable sales.
Certainly consult with your Realtor about your specific market as things can change from day to day. As for the Tampa market, prices continue to climb every month. So if you have been sitting on the sidelines waiting to either buy or sell. Now might be the right time for you.
As always if you are interested in buying or selling or would just like to talk about options. head on over to www.MikeGalovic.com to get in touch with me.
