So, what kind of market are we in?

No matter what the papers say, no matter what Realtors, say, no matter what your uncle's brother's cousin (twice-removed) says...we are still in a DEPRECIATING MARKET.

How can I say that you ask...let's look at the raw numbers from Pinellas County Homes & Condos from May '06 - June '07:

The easiest characteristic of a DECLINING VALUE MARKET is the inventory vs. absorption (solds). Notice the steadily increasing inventory of properties for sale - then contrast it tour the declining (or flatlining) number of SOLD properties.

So what IS happening to prices? Good question - let's take a look:

Haven't you heard prices are falling? Apparently not, looking at this cumulative graph over the past year. Look at the red line for 04/06 - Average price of $272,000. Go to the far right and look at 06/07 - $272,000. Hmmm...that tells me that prices are holding SOMEWHAT STEADY if you take a macro viewpoint. Someneighborhoods have seen 20% - 30% decreases.

Notice the declining GREEN line...those are asking prices. They have steadily fallen as Sellers realize they are competing against each other for the savvy buyers. Average ASKING prices have fallen appr. 18% in Pinellas County - NOTE I said ASKING PRICES, not necessarily sales prices.

So what's going to happen - honestly, that's anyone's guess. However, if you look at the numbers of For Sales, Pendings, and Solds (Graph #1) over the last 3-5 months, you will notice they do not change much month over month - that indicates stabilization in our market place.

Buyers, it's probably about hit bottom - maybe another 5%, which you can easily capture with good negotiating. Sellers, if you get an offer 5%-7% b elow your already "low" asking price, don't be insulted - it's simply the market.

Good luck!