Did you miss the bottom of the market in FL?

The number one question that I get asked as a Realtor is: When will the market bottom out? I think I even hear that question in my sleep I'm asked it so much. There are several indicators that will give you a good idea, but there is one major indicator that you should be looking for. That indicator is supply and demand. Most experts will tell you that a healthy market has 2- 4 months of inventory. I live in Fort Myers, FL. We have seen our ups and downs in the real estate market in the last 36 months. At one point in late 2005 Fort Myers/Cape Coral was the fastest appreciating area in the US. That number was a staggering 47%. In the last 12 months we have been tagged as the foreclosure capital of the US. At one point we had more foreclosures than anyone. That includes California, Arizona, and Las Vegas. The reason house prices went up so quickly and plummeted so quickly is inventory. Three years ago there were 3-6 families for every house on the market. 2 years later there were 6-10 houses for every buyer. It isn't rocket science folks. When inventory is high prices will fall. When inventory is low prices will increase. Inventory is getting eaten up quickly by first time homebuyers and investors in my area. I have never seen more multiple offer situations than I am seeing now. Take a look at the statistic below. Cape Coral is 5th in the nation in most improved house prices.

No. 5

Cape Coral, Fla.
ZIP: 33914
Metro area: Coral-Fort Myers
Annual home sale increase: 103%
Fourth-quarter sales: 274
Median home price: $137,450
Median home price change: -14.5%
Nondistressed sales percentage: 30%

Why the sudden increase in sales you ask? Where else in the nation can you buy a home that is 2-3 years old (and sometimes brand new) for $40,000-$50,000? Where else in the nation can you buy a duplex that is 2-3 years old (and sometimes brand new) for $40,000-$50,000? The answer is nowhere! Oh and did I mention you are less than 30 minutes from the white beaches of the Gulf of Mexico.

Prices have dropped so low that cash-ready investors and first-time buyers are making multiple offers on distressed properties. I have never been so busy in my real estate career. I not only have first time homebuyers calling me, but also investors with cash! So has the market bottomed out? I don't know for sure, but these statistics don't lie. If you are looking for a cash flow investment or a second home please call me. Prices are at a historic low in our area. These deals are not going to last.

Excerpts taken from the Business Weeek article:

"Signs of Life From the Real Estate Market" by Prashant Gopal Friday, March 6th 2009

Israel Emory

Alliance Realty Group

isemory@hotmail.com

239 292 2499