Windemere going nuts?

I have been silent for a while but for a reason. I knew this was coming but told to keep my mouth shut by many. But how can you keep me locked up??

For months I have been saying to agents- go easy on increasing the prices in the area. We do not want another craziness like 2005-06 coming our way because we saw that the fall was too bad and gruesome. But making a quick commission sometimes is easier than truly caring about what happens in the area. Plus, I am sorry to say that sellers too started to think that the recovery had come.

Today, there are 42 homes in Windemere and even though the demand is high in this area, the inventory has grown suddenly. I suppose it is also the season to move but if the prices remain controlled and we do not have crazy people conjuring up insane ideas about pricing, we should be okay.

Out of the 42 homes listed, there are 10 short sales; 6 new home sales. I am also noticing that some of the short sales are coming back on the market too. I have written many offers on short sales that went pending because the listing agents took higher offers but they are back on the market now, adding to the inventory pool.

ANother observation I have to share is that the REO inventory in Windemere is almost none. Do you know why this is happening? because there a couple of investment groups who are buying these homes at the auction, fixing them up in a few days and bringing them on the market as regular sales. This pattern will continue to happen, unless these investors start to see the market soften.

The biggest silver lining for Windemere residents is that the builders are out of here in December 2010. That will mark an end of this journey and then the upward tick will come. Slowly but surely. If you are a buyer looking to move here, it may be a good time as prices are still way lower than what they used to be in the high market and I see good appreciation in the long term. If you are looking for short term gains, it is not going to happen.