I don`t know about you but each day I like to check the MLS to see how the homes in my area are doing. I look at housing prices like a stockbroker looks at stock exchange each day, only they have the Wall Street Journal and Bloomberg news to use as a guideline, we in Real Estate don`t.
Stock Brokers use graphs and charts to form opinions whether the market will rise or fall. They see a pattern and give it terms such as “Cup and Handle” what that means is they see the market dip and surge in a formation.
That being mentioned during the course of the past 10 months, I`ve watched what we call “The Domino Effect” take place in the Real Estate market.
We`re starting to notice homes that were priced significantly higher finally see that there are no buyers at this level and suddenly they`re adjusting their home prices!
In Miramar, Florida for example I`ve been carefully observing one area in particular called Silver Lakes. This area is worth mentioning because for several months the Realtors who farm this area continued to tell their clients that “Lowering Prices” isn`t an option, they felt that by telling the sellers to keep they`re homes at a higher level will keep the sanctity of the neighborhood.It`s the “Old School” mentality.It`s not working and the sellers are realizing that!
Many of these Realtors have seen their listings expire and in some cases the sellers are on their 2ND,3RD or 4TH Real Estate company.
The domino qq pkv Effect is in “Full Swing”.
Here are some examples as to what`s transpired in this neighborhood.
1-18072 SW 29TH LN.Miramar Florida. This is a 4bed,2ba,2CG. Home has been listed on the market since 10/17/2006.The original “List Price” had been $424,900. Today this home is listed at $395,000.
2- 18128 SW 24TH ST. Miramar Florida.This is a 4bed,2.5ba,3CG. Home has been on the market since 11/10/2006.The original “List Price” had been $639,000. Today this home is listed at $549,900.
3-2108 SW 176TH TE.Miramar,Florida.This is a 4bed,3ba,2CG. Home has been on the market since 09/08/2006. The original “List Price” had been $573,000. Today this home is listed for $490,000.
4-3555 SW 174TH DR.Miramar,Florida.This is a 5bed,3ba,3CG. Home has been on the market since07/03/2006.The original “List Price” had been $775,000. Today this home is listed for $664,900.
5-3545 SW 174TH DR.Miramar,Florida.This is a 5bed,4ba,3CG. Home has been on the market since 05/04/2006.The original “List price” had been $799,999. Today this home is listed for $689,000.
The examples above demonstrate that the market is slowly diverging itself from being at a level where the Actual Sales Price was too high for the neighborhood.
Some of these homes have been on the market much longer than they should be which indicates that the sellers still need to readjust their sales prices in order to compete.
That doesn`t necessarily mean that their not “Great Homes’ it simply means that like the game of Domino’s something eventually has to give in order to get them sold.