March 2007 Market Conditions
In Southwest Florida the days of multiple offers and lotteries for properties ended about two years ago. I am kind of happy and also sad about it. I am happy because we have turned to a much more normal market and the flippers are gone. I am sad because a dog with a note in his mouth could sell anything and commissions during that period were great! Let’s face it I make my money selling Real Estate! A stable market is much more conducive to sustained growth than is a rampant market. It is also scary to watch the per sq. ft. price of a home increase by $10.00 a sq. ft. per month. In Florida we also have the problem that was created by the severe increase in property values and the rapid decrease when the market turned and it is called Property Tax!! Non-resident home owners in Florida are at a disadvantage if they own a second home here since they don’t qualify for the programs that protect homeowners that are residents from excessive property tax increases. A class action law suit was filed recently to change this and as a resident I hope it is successful. Not because I want to pay more in taxes but I don’t feel that it is fair to overcharge the second homeowners that are important to our economy and culture. The old saying that says: “Don’t bite the hand that feeds you” comes to mind. Florida depends on the Snowbirds and it is important to treat them as we treat ourselves. They have invested in our area and deserve the same breaks that a full time resident receives.
January was an up-tick market in the SW Florida Market but it was followed by a down February. Personally I thought both months were up but one realtor does not make a trend. I am very confident that the national market will improve and that more and more markets will start to show positive numbers. Inventories will hold down any big swings but the over all market is moving in the right direction. I do not listen to the Nay-sayer’s since they are a prime reason that the market has not moved faster. Bad news sells faster than good news. When is the last time the evening news broadcast anything that was good as there lead piece? Never, it is 25 minutes of bad news and 1 minute of positive news.
Real Estate is here to stay regardless of who controls the Whitehouse or The State Capial and unless we are all looking for the best overpass to live under, I believe we will see some positive moves in the next three months. Don’t be the one that says. “I could have bought that for …”.