Sarasota Real Estate - Finally, a buyer's market ... but where are the buyers?

There is a bit of irony in that for the first time in the last five years we have what is defined as a true buyers market (a market where there is an abundance of inventory and motivated sellers) yet a lack of any significant activity. So, is it really a buyers market?

Sure, there are still real estate transactions taking place but taking into consideration the amount of properties on the market and the sincere motivations of people to sell, you would think this market should be buzzing right now.

Maybe the reason that it is not is because buyers are expecting to get a "great deal" and sellers, though sincere in wanting to sell, aren't prepared to sell for less than what similar properties sold for a year ago. Sellers aren't looking for the 20% appreciation over last year's figures but they definitely aren't ready to sell for less.

I guess one could argue that alot of the properties are still overpriced; that the inventory is great because investors / speculators are "pulling out" but still wanting to reap the high prices of the past few years. But really, except for those with very deep pockets, how long will these owners want to pay taxes and insurance on unoccupied properties? Will there be opportunities for great deals? I think so.

Right now, I see opportunities in the new construction projects (homes or condos) that have recently been completed or will be completed in the next 6 months. Many of these buyers purchased these properties (at a cost of the initial deposit) with the intention to "flip" when contruction was completed. In the case where these buyers have no desire to carry a mortgage, pay taxes, insurance etc., they may be willing to "lose" their deposit and assign their contract; this creating a real opportunity for someone to buy "right".
In a few months, many of the downtown condos will be completed. For baby boomers looking for their getaway in Paradise, is this not a great time to purchase?

Home builders who built too much, speculatively, have lots of new home inventory and are offering incredible incentives, competing directly with the very people they sold "first phase construction" to as "investment opportunities".

This competition means good things for those wanting to buy right now; especially those wanting value and a good investment. This is not the time for "flippers", but for those who want to purchase at a fair price and realize healthy appreciation over the next five years.

I think it is a buyers market right now, however, a number of factors such as, the war in Iraq, the war in Lebanon /Israel, relations with North Korea, an uncertain hurricane season, rising insurance costs, higher interest rates and even the threat of avian flu, have people waiting and watching. I'm confident however, that in the next six months people interested in buying in Sarasota will see this as a great time to make the move and the buyers will be back.