Home prices continue to decrease in Sanford, FL. In fact, since the market peak in 2006, the Median Price for single family homes has decreased 17% from $465,450 in 2006 to $385,000 for YTD, 2008. The < $200,000 price band of single family homes saw a similar impact with a price decrease of 35% from the peak median home price of $195,000 in 2007 to the YTD median price of $127,450.
Because of varying home sizes, a more accurate indicator of value is the price per square foot ($/SF). Here we’ve seen a 22% drop from the peak for all single family homes sold, and a 20% drop for single family homes sold for less than $200K.
Unfortunately many sellers haven’t embraced the changing conditions and are still pricing their homes at the 2006 year price per sq. foot. Here’s a summary of the active listings for Sanford courtesy of Mid Florida Regional MLS.
So, what’s in store for the future? Because of mounting inventory, and fewer sales, there will be additional pressure on prices. Overall in Sanford On Hand Inventory exceeds 31 Months (over 2/1/2 years – yipes!). It is slightly better in the < $200K price band where on hand inventory is currently at 27 months. However, Foreclsoures.com shows that there are 574 residential units (1- 4 units) in the pre-foreclosure stage. Many of these properties are not yet listed and are not included in the 732 active listing number/31 months of inventory. Many of these pre-foreclosures will result in short sales, thus bringing down the price of comparable sales even more. My advice for sellers, if you need to sell within the next 2 to 3 years DO IT NOW! My personal belief is that we will continue to see prices decrease over the next 2 – 3 years due to the basic principles of supply and demand. Price your home aggressively, and get ahead of the curve. With so much inventory only homes that scream value are going to be viewed. You also should make sure that your home is in tip top condition, and that it is completely de-cluttered. My advice for buyers is that now is an excellent time to purchase. However, work with your realtor to factor the anticipated decrease in home prices in to your offer, or focus on the pre-foreclosure homes, many of which have built in equity.(Data provided courtesy of Mid Florida Regional MLS)
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Posted on February 25th, 2008 under Buyer Info, Market Update, Sanford, Seller Info • Tags: best deals in sanford, buyer's market in central florida, buying homes in orlando, fl homes, fl real estate, foreclosure, maureen loeb, maureen o'grady, orlando real estate, Sanford. • RSS 2.0 feed • Leave a response, or trackback
