COMMENTARY: Much like March, Q1 2016 came in like a lion and out like a lamb. December 2015 was a very active month and Q1 2016 seemed to be right on track to continue the pace. However, by February, pending transaction counts started to slow and we started to see buyers become less aggressive in their negotiations. On the flip side, sellers were still holding on to the hopes to get the optimum price for their property. With Easter coming early this year, we saw more price adjustments come in mid March to tempt the exiting snowbirds and spring break crowds. It’s typical to see these price adjustments as season comes to an end. Unfortunately, the slowing market has prompted the bottom feeders to throw in low ball offers fishing for desperate sellers .
So, is the market adjusting? From Q1 2012 to Q1 2015, average price increased about 25%. Since Q1 2015, inventory is up 12.5% and Q1 2016 is about 5.5% off last year’s average price. So, yes, we have had a minor adjustment. The real question is for how long will it last? We believe that the political environment has affected the market but when the election dust settles, regardless of who wins, we will probably see the market return to a normal. Every market makes corrections. It’s healthy! Though with less buyer demand and higher inventory supply, sellers will need to adjust to the competition. This brings opportunity for buyers who are willing to brave the waters. Beware, this is a time of compromise, not conquest. WIN-WIN vs Winner Take All. Sellers may be motivated but they’re not desperate and most are still offended by ridiculous low ball offers. Play your cards right buyers and you could get your piece of paradise for a value. It’s always a good time to find your piece of paradise!