Yesterday’s and today’s Sarasota Herald Tribune points out what we have been saying for the last five months, units volume is down by approximately 1/3 and prices are down 20% from the market peak in mid 2005.

I will point out that local inventory levels have stabilized with approximately 52 weeks of supply in all price ranges. Further, according to David Seiders who is the chief economist at the National Association of Homebuilders, nationwide home sales have been consistent for the last four months indicating a stabilization of demand at approximately one million units per quarter.

Buyers should recognize the tremendous opportunity that exists right now as a large number of sellers are ready to consider all reasonable offers. This opportunity will start slipping away in the first quarter as supply starts to gradually decrease and more and more sellers decide to pull their property off the market until the market rebounds.

I see values rebounding in the third quarter of 2007. Sellers who cannot afford to sell and are in a position to wait things out should take their properties off the market. Sellers who need to sell now should instruct their agent to indicate to prospective purchasers that the seller will consider all serious offers and be prepared to accept a final sales price closer to Q4 2004 levels.