If you haven’t read my post Doom & Gloom, you should.   Many buyers are sitting on the sideline waiting to find their “deal of a lifetime”.   Well, if you are in the Tallahassee area we may be there.   After crunching the end of the year numbers it looks like Tallahassee home sales were down approximately 10% compared to 2006.   The rest of the state of Florida was down an average of 29%.   The median sales price actually increased by 4.5%.   Median sales prices were up?   I know, I know, your asking, “but Dave, how can the average median sales price increase in 2007 over 2006 unless people are actually selling their houses for more on average in 2007 than what they sold their house for in 2006 on average.”   Exactly.   I know the national media has you convinced that millions of people are losing their homes to foreclosure and that seller’s are going to give their house away at 50 cents on the dollar to sell it, but it just isn’t true.   98% of Americans are current on their mortgages.   To put that in perspective, think of 100 people you know that own their home.   Less than 2 of them will lose their house to foreclosure.       But what about the one’s that are foreclosed on by their bank?   There are definitely some great buys floating out there due to distress sales and foreclosures,  but a bank is going to try to get top dollar for a house  that it now owns just like any other owner.   Banks like to make and recoup money, not give it away.   Another obstacle that many buyers fail to consider while they are waiting for these fantastic pennies on the dollar deals is that their Realtor may never tell them about them.   Any deal that good is likely to be bought by a Realtor.   After all, many Realtors are also investors.   You didn’t think Realtors got wealthy by just selling real estate, did you?   Bottom line, interest rates are at record lows, and  inventories are still high enough for sellers to negotiate.   New mortgage application’s are up 25% over this time last year.   Buyers who continue to play the waiting game may watch someone else move into their “deal of a lifetime”.

Here we are, about to say good-bye to 2007.   If you listen to the media you have heard how terrible the market is, and how we are all one paycheck away from being homeless.   Foreclosures have doubled and my goodness how will the economy survive?   Well, I  believe the  stock market jumped over 300 points last week so I think economy is chugging right along.

So let us talk about the real estate market here in Tallahassee.   We are 31% percent below the number of sales we had in 2006 for 2007.   Ouch.   Foreclosure numbers have risen.   Ouch.   So let us put things in perspective.   Our real estate  transaction numbers for 2007 are very similiar  to the numbers we had in 2002.   In fact, they are a little better.   Why is  that important you may ask?   Because 2002  was the start of that fantastic little market run we just had.   Another reason for optimism in 2008 is the fact that interest rates are still incredibly low.   Job growth has remained positive.   There are “pent  up” buyers waiting on the sidelines.   Oh, did I mention property values have only decreased 2% through this “terrible” year?   As for the foreclosure situation, let  us put that into perspective as well.   In a  nutshell 98.6% of existing mortgages are performing like they should.   Even with the “doubling” of foreclosures 98 out of 100 home  owners are current on their mortgage.    

What does this mean.   Well, it is open to interpretation.   Bottom line is those buyers who are waiting for some great price decline or massive sell off due to foreclosures may wait themselves out of the best time to get their best deal.    If you are a long term investor/ home owner now is a great time to purchase, and lock in a low, low interest rate.    The keys to a new home would fit under a Christmas tree.   Something to consider.  

Welcome to David Batson’s Blog! This blog will provide you with valuable information, tips, and general insight into the real estate market in Tallahassee.