[pbs911]

I've been watching the MLS listings on Ziprealty.com in the SE Florida area. Ziprealty is nice because it tracts any price reductions and the total time on the market. Since 2002 this area has seen a 20-25% appreciation in property values through August 2005. Like the majority of areas, income has not risen with the price of homes. Funny money, no-money down mortgages, and investor purchases are very active.

The listing price of these homes have remained high reflecting the median price of July 2005. However, since November 2005 the multiple listings show single or multiple price reductions. The price reductions have increased, with many price reductions occuring within the first week or two after listing. Not surprisingly the "days on the market" have increased into triple digets. What is telling is the price reductions and "sitting on teh market" occured during the most active sales months in the area. Presently, the inventory is ridiculously high.

I contacted a ziprealtor I have been talking with to inquire as to homes marked "inactive." I was told these homes have been sold. I randomly selected 25 homes that were "sold" and checked these with the county sales records. Surprisingly, I found only 1 home that had been sold. The original listing price was $449k. A remodeled SFH, 4 bd, 3 bath, pool in a nice neighborhood. Two price reductions took it down to a $399k. County sales records show the home sold for $369k after sitting on the market for 120 days. Similar homes in the same neighborhood sold in May & June 2005 within a few days at a $450k listing price. I could find no other home reported as "sold" in the county sales records that was listed on ziprealty as "inactive." The seller had to come down 20% from the listing price. So for this one home, the market did fall 20% since last June. For the other homes that did not sell but were pulled off the market, I would expect a similar decrease in price to be necessary to sell the home. It is a battle between the sellers to attract the buyers.

Over the past week I have noted a few very nice remodeled homes that were listed well below the median sales prices. It appears some sellers have wised up and gripped the reality that the June 2005 h09me prices are no longer attainable.

My take, in the SE Florida rejoin, homes will sell, but are not going to sell for more than 25% less than the June 2005 high market value. Coupled with the upcoming hurrican season, where home sales significantly slow From May - December, more home will likely be sitting longer on the market.

This is not scientific by any means, but to me is an indicator of the housing market and the "bubble has burst" in the SE Florida market.