This October, an unexpected decline of sales causes a statewide backlog of unsold homes. In October, the real estate market fell 2.7 percent. The unexpected decline signals an increase in unsold homes. In 19 years, this has been the fastest rising price in the real estate market.

According to analysts of Florida real estate, this backlog will reduce future price gains. Although some housing sales are still good and median prices, prices continue to affect the real estate market while signs of cooling go up in October.

The nationwide real estate sales fell up to 5 percent. In October 2004, the median home price was approximately US$188,800. This year, it rises up to 28 percent, as the median price became US$241,000. According to the officials of Florida Association of Realtor, the decline was due to the disruptions of Hurricane Wilma.

In Orlando, an inflating inventory that reached the highest price in eight years was a clear signal of the city’s cooling real estate market. Sales in Orlando experienced two consecutive months of price escalation this September and October. For the first time this year, Orlando’s average existing-home price rose to US$246,790 in October.

The National Association of Realtors reported on Monday that sales of existing condominiums and homes fell by 2.7 percent in October. This fast pace decline of sales left the real estate market with an annual rate of 7.09 million, compared to 7.29 million in September

Economists stated that this depletion is a signal that the booming housing market is beginning to slow down due to the dramatic impact of rising mortgage rates.

This major decline in sales pressed the number of unsold homes to rise at 2.87 million, one of the highest levels in 19 years. At this current sales pace, the inventory level depletion would take at least 4.9 months to recover.

Last month, the midpoint price of unsold homes sold rose 16.6 percent compared to US$218,000 in October 2004.

According to David Lereah, chief economists for the Realtors, the housing sector has finished its peak. The real estate industry is expecting the housing rates to remain at these levels or even go higher.

This summer, almost 69 cities nationwide increased housing prices to double-digit gains. With this recent market report, many economists predict that unsold homes would decrease its prices.

By Paulene Calinawan
Real Estate Portal

As all signs saying Southwest Florida real estate market is hot, there is still at least one realtor who says it's not as hot as it looks like.

Obvious reasons to say that a handful of list of homes can be found for sale in Lee County, There are reports saying that the rate of homes sold keeps on climbing uphill.

The easiest way to determine the activities of the real estate market is to find out the number of properties that have been put under contract.

The number of properties that was put under contract, for the month of November, was less than normal. There are approximately 582 homes in the real estate market. During the month of November, only 13 homes were placed under contract, with the lowest price of US$575,000. Seven of the thirteen homes, which include waterfront areas and inland homes, were priced under US$1 million. The highest priced home, which took 266 to obtain a contract, is priced at US$2,495,000.

At this time, there are precisely 676 condominiums on the market. However, in November, only eight condos were put under contract. The lowest-priced condominium was established at US$309,000 and six were priced under US$1 million, which took 241 days to finish the contract.

On the other hand, 476 lots are currently on the market. All throughout November, only two lots were placed under contract. One was priced at US$589,000 and the other at $789,900, which took 537 and 236 to sell, respectively.

On the average, home sellers usually obtain a contract for at least eight months. The factors that influence the total pricing and time to get hold of a contract rely on pricing, location and property condition.

Although the real estate market in November is one of the slowest times of the year, factors such as the Hurricane Wilma could be argued. The November real estate report should not be taken as a forecast of the upcoming months.

The interruption of Hurricane Wilma kept the homebuyers away. However, the Marco Island has cleaned up well. Visitors of the coming season will be impressed on how minimal impact the hurricane had on the area.

Last season, the sellers were in control of the real estate market. Nevertheless, with a small number of home purchases and few properties on the market, it has now become a “buyer’s market.”

As the real estate in Marco Island cools down, the sellers need professional assistants to get their properties sold for a fair price. In the end, the final price would still depend on the agreement of both the buyer and seller.

Mortgage lending rates on the escalating resulting in an increase in the number of unsold homes on the market.  Existing home sales are declining leaving owners hanging. 

Now, the market is changing.  Fast.  The skyrocketing mortgage lending rates create a doom and gloom scenario not only for potential sellers but buyers as well.  Both parties can't seem to decide whether to wait for the market to improve and buy/sell later or grab the opportunity to buy/sell now while the rates are still manageable.

But, according to Frank Nothaft, Freddie Mac's chief economist, U.S. sales of new and existing homes are expected to decrease by 8% this year as rising prices and higher mortgage rates are practically making homes inaccessible to more families.

As all signs saying Southwest Florida real estate market is hot, there is still at least one realtor who says it's not as hot as it looks like.

Obvious reasons to say that a handful of list of homes can be found for sale in Lee County, There are reports saying that the rate of homes sold keeps on climbing uphill.