The news today that foreclosures may have peaked spawned the headlines "Lee's housing market bottoms out."
Working in the industry and studying the market intently I often sit back and wonder what this means. Correctly put I believe that it should say Lee's housing market may have hit the TOP of the foreclosures. (Maybe)
We are really looking for different signs that point to recovery. At the end of the article there is a mention that baby boomers may in a couple of years come back into our market and revitialize it. I would argue that they already are!
The reason they left or stopped buying in the first place was our market became overpriced and was seen as overvalued. Our cost of ownership put many out of the market with insurance and tax costs. Now as our market corrects we are seeing the buyers come out and buy. Many are baby boomers from all over the country. Evidence of this was seen in the recent liquidation sale at Coral Lakes.
We may be seeing the top of the foreclosure market only time will tell. We need to see the top of the inventory growth and we have not yet seen that as our inventory grew again in March to just over 16,150 for single family resale homes. Sales were good but no enough to create a drain on the inventory.
We are feeling and seeing the bottom of the builder market as they are building and selling as low as we will see. As fuel and transportation costs rise so will builders costs and so will the cost to the buyer. If there is a builder with inventory or putting footers in the ground today, it may be the bottom for this sub-market.
We still have to work through the bank sales and short sales and this process is like trying to suck peanut butter through a straw.
Sellers are still hurting adjusting to what the market will offer for their home. This is hard as these foreclosures are really putting pressure on prices.
These tops and bottoms are all good signs just like watching a wound heal. Our market is healing and buyers are starting to realize that the deals are here and now.
Michael Polly - Vice President Denny Grimes and Company
Where are the buyers?
That question has been asked a lot over the last 2 years. Well, the answer is in and the buyers really did not go anywhere. The market and pricing left the buyers but the buyers didn't leave the market. Last Wednesday Coral Lakes, a gated community with nice amenities, went up for liquidation sale. Priced at levels that rolled back pricing to 3-4 years ago. The response has been overwhelming!
Buyers flocked to scoop up these tremendous deals. There were 116 homes and townhomes to be sold. The townhomes starting at $86,000 were the first to sell out. As of this post there are less than 30 homes remaining. These homes were priced at a 50-75% discount to what the builder was selling these homes at.
The response says volumes to the interest that is out there for people wanting to own a home in SW Florida. Cape Coral, Fort Myers and surrounding areas are full of deals like this and the news of this interest as it reaches the national level will be a great boost to our area.
Recent statistics show that our population continues to lead the state in growth. While our inventory levels remain high and many submarkets have a ways to go to be competitive in price, there are buying opportunities out there. Smart buyers are finding them and buying them.
Almost 1,000 people have expressed interest in Coral Lakes and that speaks volumes to the notion that buyers went away. Buyers are here and when the price is right they will act. Those that do not will look back and wish they had.
For more information on Coral Lakes http://www.dennyspicks.com
Michael Polly - Vice President Denny Grimes and Company 239.689.7600 http://www.michaelpolly.com
WHY CHASE BANK SALES AND FORECLOSURES?
In the next couple of weeks we will be releasing a gated community that will be sold at 50-75% discounts to what the developer was selling these homes at. They range in size from 1300 to over 3000 square feet. Loaded with upgrades that are basically free at these prices! These homes have never been lived in and are ready to move in. Close quickly and start calling it home. Prices will range from the low $100,000s to just over $200,000.
Ammenities include a spectacular club house, resort style swimming pool, lakes, tennis courts and more. These are the deals you have been waiting for. Information will be sent to those who have registered at http://www.dennyspicks.com
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