It's A Buyer's Market in Florida

Recent property sales that continue to lag in Southwest Florida are following a local and national trend. It's a buyer's market, and it's all about price. According to the National Association of Realtors (NAR), existing home sales increased 4.7% in February over the previous month, with activity concentrated in lower price ranges. Because buyers are shopping for bargains, distressed sales accounted for 40% to 45% of transactions in February. NAR also reports that sales activity remains relatively soft, reflecting additional layoffs, and buyers waiting for housing provisions in the economic sitmulus package to take effect. NAR's analysis shows that distressed homes typically are selling for 20% less than the normal market price, and this naturally is drawing down the overall median price. The bottom line is that the real estate market must cleanse itself in order to improve.