ST.CLOUD FLORIDA EXPERIENCES HIGH VOLUME OF HOMES SALES- Recovery will begin from the bottom up.  The increasing demand for 3 bedroom homes under $75,000 has fueled existing home sales in the area surrounding St. Cloud, Florida. 

Competition in this price range is stiff.  Multiple offers are coming in on most homes in this price range, and SALES in the past 30 days reflect a list price to sales price ratio ranging from 100%-103%.

Existing single family Homes in St. Cloud,FL  are rotating off the market at much higher rates than previously reported.  Inventory is down and sales are up.  This inverse relationship shows signs that are significant that the housing market here is in the beginning stages of recovery.  Median prices have also edged up over the past 90 days.

While a high percentage of these homes were short sale and bank owned properties, more homes are pending, than are coming onto the market consistently on a daily basis.

WHAT DOES ALL OF THIS MEAN TO POTENTIAL HOME BUYERS?

It means, consumers have to act quickly as home prices are once again on the rise.  Over the past six months the market has shown stead improvement and rising sales, as banks move quickly to liquidate  inventories of foreclosed homes.  These homes represent an excellent value for buyers.  Resetting prices to pre-boom more affordable levels. 

THE REAL ESTATE BOOM OF 2006 WAS AN ANOMALY. 

Unrealistic escalation of home values was a result of a limited supply of available homes, which fueled the buying frenzy to an orgasmic climax creating disproportionate appreciation.                                          As builders rushed to build more units,and lenders dispensed mortgages like pez candy, the bubble had to burst- inundating the market with housing surpluses of overpriced homes and no one to sell them to at prices so high, no one could afford them. 

Over a 33 year period the measure of a home's expected rate of appreciation averaged to 6.5% annually.  A healthy inventory was a 7 month supply. During the boom, this ballooned to 300%.  Leaving many late comers to the buying frenzy over leveraged and under funded when the market imploded. 

TODAY... The rate of absorption (homes sold vs homes coming on the market) is escalating. Prices have reset to 2002-2003 levels.  By comparison, the Stock Market yesterday was exactly the same as it was on 9/11/2001.  (hovering at just over the 9600 mark) 

WHAT SHOULD WE EXPECT? 

Despite rising unemployment (expected to exceed 10%)  demand for affordable housing should continue to rise.

Banks will continue to liquidate foreclosed homes at discounted prices, but will replace sold inventory with higher priced newly foreclosed homes at current market demand prices, which will rise in month over month sales comparisons.  Competitive offers at above List Price levels will continue the growth of sales on existing homes well throughout this year and well into next.

The housing market recovery will not start at the top end homes and trickle down, but rather grow from the barren parched soil of the toxic mortgage fall out from the bottom up.  In effect, buyers have and will continue to set Market Prices.

It has long been said in Real Estate circles that a home is only worth what someone is willing to pay.  This applied both in good as well as bad markets.  It is particularly true now in St. Cloud, Florida as multiple offers are commonplace.  Highest and Best Offer will prevail.

Our northern and Mid-West neighbors are once again rediscovering the value in Florida Real Estate, this is particularly true in ST. Cloud, Florida where second homes, and smaller, older historic homes are viable as rental units. Offer excellent value compared to those homes in more densely populated regions where housing simply costs more.  The close proximity to Orlando, the beaches, the space center, Disney and the Attractions and Universities, make St. Cloud, Florida popular for a variety of reasons.

ARE YOU READY TO BUY? 

Allison Stewart, 407-616-9904  Real Estate Broker/Assoc,

Serving Osceola County, St. Cloud, Harmony, Kissimmee, Florida