Forget the age-old realtor's catchphrase about now being the time to buy; Florida Realtors chief economist John Tuccillo puts sellers in the driving seat of the current real estate market, claiming that now is actually the time to sell.
Speaking about Florida's housing recovery during the Top Producers Forum at the Gainesville-Alachua County Association of Realtors office, Tuccillo explained how home owners in Florida are in the perfect position to sell while inventory is low and demand is high; from a 25-month supply in 2008, the current five-month supply is driving up prices and causing bidding wars to break out across the state.
He also explained, however, that the inventory is likely to rise throughout 2013 and continue into 2014. When the figure reaches a 5.5-month supply - the number deemed to represent a balanced market - the position of sellers will be weakened.
Tuccillo said: "If you can get your clients to beat that, they're in an even better position." He claimed that the ongoing rise in employment in Florida is an indicator that the real estate market will continue on its road to recovery; however, he did also note: "One big snag here is the fact that lending terms right now for ordinary people are more stringent than they were in 2000." This has resulted in cash sales having increased from 20% of the buyers market in 2008 to the 50% seen today.
Unlike the investors in 2008 who looked to financially gain from fast-paced flipping, today's investors are buying and renovating cut-price properties to release for rental and sell when the market offers an attractive return on investment.
