Home Sales Market Update
Real Estate although painted with a broad brush by the press has always been a local market. It is impossible to make a claim that the Real Estate Market is up or down unless we explain that we are talking about more down areas than up areas in general or we address a specific market. It is too broad to even state that the Southern Florida Market is up or down since Southwest Florida may be experiencing an up market and Southeast Florida may be flat or down. So when ever you are looking you need to check the specific market reports for the area of your interest. If you only look at the broad brush reports you may miss an opportunity thinking that the market is down and thinking that, I’ll wait until it hits the bottom before I make my move. The problem with that strategy is by the time you read about it, you have missed it and secondly unless you are reading new on your specific market you may be acting on bad information.
I suggest that anyone that is looking to buy or sell research the specific market and follow those related news reports to make their own informed decisions of the current trends in Real Estate.
Fort Myers was one of the first to experience a down turn in its market almost three years ago. In 2008 it is bucking the Nation trend and is seeing resurgence in activity. In the last 12 weeks Home sales of Single Family homes is up 45% over the same period the previous year. At the start of 2008 inventory was at a 22 month level. In other words the supply of homes would take 22 months to sell at the current rate of activity. As of April 1, 2008 that level has dropped to an 11 month supply of homes. This is a dramatic drop and does signal a significant change. If you combine this fact with the average price increasing by $15,000 we see that this area may have seen the bottom.
A four month supply of home is a good level and the supply is still high but declining. This still indicates a buyers market but the signs are there that the end is near and perhaps the wise buyer will take advantage of the opportunities that remain. It is the writers’ belief that through the third quarter of this year we will still have many great opportunities since there will remain many short sales and foreclosures that will continue to suppress any significant price movement.
So in summary, if you are a buyer, now is the time to act. If you are a seller and can wait until the fourth quarter to list your home, you will see an increase in prices.