For the past three years, patience for homebuyers has been a virtue.

Since the market peaked in July 2005, sales and prices have dropped steadily. As a result, buyers could afford to be choosy because there might be a better deal across the street.
Now it appears this trend is shifting towards a much better one that sends a message to potential buyers that procrastination is no longer an asset.

Florida’s biggest landowner, the St. Joe Co., believes the housing market may have reached the bottom. St. Joe chief executive officer Peter Rummell points to stabilization in the residential inventory as a positive sign, adding that buyers must be "retrained" to recognize the importance of buying a home now.

A Wall Street Journal article printed last week backs up Rummell’s claim. The article states that April 2008 likely marked the bottom of the U.S. housing market. It also notes that inventories are now declining because construction activity has been falling for such a long time that home completions are now just about falling short new home sales.

In Bay County, we have seen our condominium inventory drop from approximately 2,200 to 1,782 units, per our local Multiple Listing Service (MLS). Homes have fallen from approximately 2,200 to 2,028, a decrease of 172 homes. Townhomes also have shown a modest drop.

According to the Wall Street Journal, when inventories reach five months of supply sometime in 2009, home prices should stop falling.

Rising home sales are expected sooner. According to the NAR (National Association of Realtors), sales should turn around nationally by summer. Lawrence Yun, NAR chief economist, believes the extent of an expected recovery hinges on better access to affordable loans. NAR President Richard F. Gaylord said there is some discussion toward relaxing some of the burdensome lending practices. That would help buyers who are often slow in signing contracts because they can't secure credit with reasonable requirements.

If that occurs, combine it with the fact that cash buyers in the marketplace have rose from three to 24 percent – thus the best properties being taken off the market at a rapid rate – it’s clear that fence sitters need to move. The time for the best selection is now and, apparently, will not last long.