What's up with this Real Estate Market??

It must be a market going through a transition....from hot to cool, but it's got some conflicting signals. At the start of 2006, sales of "existing homes" have slowed enough to turn things into a Buyer's Market. But the list prices are holding up...and price negotiation is often happening in order to seal the deal.

In the "new homes" market, sales have slowed, creating record levels of inventory in most areas of the country, but the builders are starting new homes at a rapid pace. Again, we see new home prices rising in spite of it all. It is a mixed bag, but the prices will ultimately determine the real estate market's temperature. After all, we can only buy what is affordable. In the Northwest Florida area, hundreds and hundreds of homes are in the builders' plans. At today's prices, and considering NW Florida wages, it will be interesting to see who buys them. We welcome your comments --- post them here, or email them to joe@stukey.com.