RE Market Up? RE Market Down?
by BloggerInParadise on Jun.23, 2010, under Real Estate Discussion
You constantly read (here included) about the market being up or down and wonder what’s happening. Click on my News Roll tab above or go to SwFlRealEstateNews.com for stories. The key to understanding is that all Real Estate is Local. Though, obviously, there are large influences that affect things globally, how those influences affect local markets varies due to the many differences in the local market. When the cycle started, the local economy, buyer profiles, and the attractions of the local area but a few. When you see news articles discussing the Real Estate market, make sure you analyze where they’re talking about. There’s always a down market and an up market somewhere. The national news services prefer to concentrate on disasters. If it bleeds it leads.
Here we entered the down spin early – leading the nation (what and honor!). We have been working on the inventory for several years now and we are nearing a balance. Click Here for an article on the subject.
Where we go from here depends on a lot of things, but the trend has been slow but positive for a while. Whether or not it continues a steady uptrend or varies up and down for awhile, one thing is pretty for sure – when you can buy something for 30-50% below what it would cost to build it there’s good money to be made in the long haul. We keep making people and they’ll need somewhere to live. Sooner or later building will start again and those buildings can’t be sold for less than it costs. The builders won’t build until they can make a profit. At that time, those that are buying now (and a lot of people are making those investments) will do well.
June 24th, 2010 on 8:11 am
Why is home sales down so much in other places for May, but the Naples area is up? Such a disparity.
June 24th, 2010 on 12:42 pm
Talked to a friend of mine that’s a Realtor in Monterey, CA. Their market is pretty dead while ours is doing OK as far a volume. Their prices are still really high.
Ours have lowered enough so that people want to buy because prices are right. There are a lot of people buying for investment because you can rent them out and make a very nice cash flow while you wait until the market starts appreciating again. Others realize that the prices are great and are buying for personal vacation use at the right price.
Although I expect a dip in sales over the summer due to the slow summer season and the oil question, I don’t think it will be due to the end of the government incentives. There might be less first time buyers, but most of the foreclosures are being bought by investors that didn’t get the break anyway. They like buying at 30-40% of costs. Many others are buying second homes. Again no gov. incentive for them. Other places still need price adjustments and will get them. If it’s priced right – it sells.
All Real Estate is local.