So...Do You Think We've Hit The Bottom?

Greetings from Southwest Florida! The question everyone keeps asking us is "Do you think we've hit the bottom?" No one knows for sure the answer to that question, and we probably won't have an answer until the housing market is on it's way back up.

One indicator for us realtors that the market is starting to recover is when builders begin to increase prices. Stock Development and Centex have done just that as of April 1st. The Bonita Bay Group had double the sales in four of its communities compared to same time last year. Developers are saying people this year are very, very positive and the rediness of buyers is better. Accordingly, the The Fund, economist, Hank Fishkind, Ph.D., said that "Florida's real estate market, it is important to maintain some perspective as recent reductions in home prices come after a very lofty and unsustainable peak, and prices are still up considerably compared to 30 years ago," explained Fishkind. "Florida has created a tremendous amount of wealth and -despite many of the problems that loose lending practices and subprime mortgages have caused- the state now has the highest level of homeownership ever." He states that despite what he calls areas of indigestion, "housing markets will return to normal during the next few years." Fishkind has stated that Florida "has done very well" speaking of job growth. "It has been one of the leading states for job creation in the nation and has outperformed the rest of the country - even with the meltdown of the housing markets that has occurred in many parts of the state."

A correction in the housing market was "Inevitable" following the five year boom, said U.S. Housing Treasury Secretary Henry Paulson. During that period, sales rates and home prices eclipsed records in Florida and across the country.

The interest rates are still very favorable and many of the builders continue with their incentives such as paid homeowner dues, golf course memberships, and mortgage rate buy downs.

Florida buyers are not just in the market for a new home. They are in the market for a lifestyle, this is what our warm weather, sandy beaches and golf courses offer. Baby Boomers are just beginning their journey toward the retirement years and are a group that "won't just sit on a front porch."