Seeing prices from the early 80s

Good day to all,

I just wanted to comment today On how Ironic almost every bit of Market equity gains. Made in the Sub markets of Lee county. Specifically Estero South Lee and Bonita Springs. Have been wiped out. But has started the offer frenzy bank up again.

I have been in the area since 1981 I graduated Cypress Lake High in 1986.

Estero was a dirt road I used to race Dirt bike on and shoot at cans. San Carlos only went to eastgate in San Carlos woods is. I lived at that end off ocala rd.

I started appraising real estate here in mid 90's /1996 I was selling it in 1998. Prices in that time for a condo was 30/70 a home 50 to 100 max. Untill 2000.

From 2000 when the Interest was dropped to 6% on prime we made over 200% in gains or about 5% a month unitll 2005. I was doing 20 appraisals a month and selling 5 to 8 units monthly.

As many of my fellow Brokers or appraisers can tell you, it was insane.

Well, My newest listing and new recent contract for Estero Fl is back to pre-2000 prices. Osprey cove can be had for 70K. The lowest sold so far 50k this month by FHLC with MOLD damage of course.

My point been

How do we look at equity ever same again?

Knowing what we know now. It is great for buyers it s like back to the 80/90s again. Cue in "Cindy Lauper"

When i was apprasing with 5% gains per month. I used to tell myself this cant be right.

My Training in valuation and economics, micro economies always gave me a conflicting story.

My training and love for capitalisim tells me it supposed to be this way and its ok. Free market at work,Right?

But did it realy work? Did we really makes thouse capitialized gains for a 300k 2/2 in 1000 sq ft say in Lennars stoneybrook or Ospery cove. ( Lennar Not that great) Buyer's came in bedazzaled by this market and in joy when thy won the highest bid out of 15 others!

How do they feel now? (tito pass the tissue please)

My buyer paid 265k In selling it for 79K.

My Bella Terra units purchased at $198k im selling for 79k to 99k. It cose to a safe bet now!! Stabilization is at hand becuase it s back to the 80's price. The time to buy is now that i am sure.

to the new owners,brokers and my fellow appriasers.

Do we dare go back to Hyper inflation of Real Estate?

Cheers,

Mike Rivera, Broker
Investment Real Estate Analyst
StarCapitalGroup
Naples Fl

239-770-6257
Fax 239-775-2066
http://www.starcapitalgroup.blogspot.com
www.condokmanagement.blogspot.com
Mike Rivera & Associates,LLC