TREASURE COAST HOUSING MARKET UPDATE
Recently I attended a seminar where a local economist presented facts about what is going on in the housing market on the Treasure Coast of Florida. The facts were interesting and somewhat sobering. We all know that the "boom" and craziness of housing prices is a thing of the past (at least for the foreseeable future). We have priced ourselves out of the affordability market. A majority of the people who live here and work here cannot afford the houses once the taxes and insurance are added on to the payment. You all know of course that our state legislators are working on those issues. Cheap money (aka subprime lending) along with the investors and speculators (flippers) really helped drive up the prices of homes.
The tri-county area (Indian River, St Lucie and Martin Counties) has seen a decrease of 43% in building in the past year. The inventory of vacant homes has increased 390% since the second quarter of 2005. You know that is evident just by driving down any street. Also, in our tri-county area there is a 44.7 month supply of vacant developed lots, which is expected to remain excessive for the next 24 months.
Indian River County currently has a 13.6 month supply of homes under construction and homes currently on the market for sale. The bulk of the homes being built there are in the $300,000-$500,000 range. However, the number of units under construction has fallen to 2003 levels and so total inventory has declined over the past three quarters.
In St Lucie County, as of the 2nd quarter of 2007, there was an inventory of 1,368 vacant homes - that is a 9.5 month supply. Add to that the homes currently under construction and there is a 15.3 month supply of NEW homes for sale. Now add to that all the houses, condos and townhouses for sale (new and not new) and you have a 20.8 month supply of housing inventory in St Lucie County. Per the economist, we should reach equilibrium some time in late 2008 - meaning that the number of properties for sale will come much closer to the number of buyers out there looking to purchase. In 2007 40% of homes for sale are priced between $300,000-$400,000 - which is out of range for 60% of the local market of buyers. In 2005 St Lucie County was one of the fastest growing counties in the United States - and now, we have one of the largest inventory hangovers.
Martin County which seems to have a more "controlled growth" mentality has a smaller amount of inventory available. Building starts are down. It is surmised that Martin County will possibly reach equilibrium late in 2007.
In the tri-county area there is a 35.1 month supply of vacant lots for sale. Two of the newer subdivisions in St Lucie County have many vacant lots, for example, in Tradition there are 717 lots available to build on. In Tesoro there are 468.
Foreclosures are on the rise, as are "short sales". Foreclosures are expected to even go higher by mid-2008 as adjustable rate mortgages reset (their rates). So what will it take to get back to "normal" (whatever normal is)? The rising home prices far outpaced the increases in income which affected the affordability of the homes. Prices in most markets will have to decline - some even significantly in order to restart the market. It is painful, won't be pleasant and won't be pretty, but this correction must occur to get the housing market back on track.
The economist who provided much of the facts in this article is Mr. william Pittenger, Senior Vice President, Chief Real Estate Economist and Risk Advisor for Seacoast Nation Bank. He said something that I thought was right on and which I would like to quote for you now: "Value is not an inherent quality. It is directly linked to the supply and demand relationship in the marketplace. As a result, land value (or houses(my words)), like the value of other commodities, can be subject to wild price swings." The housing market will improve, will come back, but it will take time.
Labels: economy, foreclosure, housing market, short sale
posted by St Lucie Homes on the Treasure Coast @ 9/25/2007 01:24:00 PM 0 Comments
Friday, September 14, 2007
FIVE IMPORTANT CELL PHONE USES
I received an email from a friend a few days ago that I thought was important enough to pass along to all who read my blog. I am not sure what source my friend received the information from, so cannot give the credit where credit is due, but I still want to share this information. This is the article:
There are a few things that can be done in times of grave emergencies. Your mobile phone can actually be a life saver or an emergency tool for survival. Check out the things that you can do with it and pass it along to family and friends. It may save a life!
1) Emergency - The Emergency Number worldwide for Mobile is 112. If you find yourself out of the coverage area of your mobile network and there is an emergency, dial 112 and the mobile will search any existing network to establish the emergency number for you, and interestingly this number 112 can be dialed even if the keypad is locked.
2) Locked keys in the car:
Have you ever locked your keys in the car? Does your car have a remote keyless entry? This may come in handy someday. Good reason to own a cell phone: If you lock your keys in the car and the spare keys are at home, call someone at home on their cell number from your cell phone. Hold your cell phone about a foot from your car door and have the person at your home press the unlock button, holding it near the mobile phone on their end. Your car will unlock. Saves someone from having to drive your keys to you. Distance is no object. You could be hundres of miles away, and if you can reach someone who has the other "remote" for your car, you can unlock the doors (or the trunk).
3) Hidden battery power:
Imagine your cell battery is very low. To activate, press the keys *3370#
Your cell will restart with this reserve and the instrument will show a 50% increase in battery. This reserve will get charged when you charge your cell next time.
4) How to Disable a STOLEN mobile phone:
To check your Mobile phone's serial number, key in the following digits on your phone: *#06#. A 15 digit code will appear on the screen. This number is unique to your handset. Write it down and keep it somewhere safe. If your phone gets stolen, you can phone your service provider and give them this code. They will then be able to block your handset so even if the thief changes the SIM card, your phone will be totally useless. You probably won't get your phone back, but at least you know that whoever stole it can't use or sell it either. If everybody does this, there would be no point in people stealing mobile phones.
5) Free Directory Service for Cell Phones
Cell phone companies are charging us $1.00 to $1.75 or more for 411 information calls when they don't have to. Most of us do not carry a telephone directory in our vehicle, which makes this situation even more of a problem. When you need to use the 411 information option, simply dial 800-FREE 411, or 800-373-3411 without incurring any charge at all. Program this into your cell phone now.
Hope you never have to use any of these options, but if you do, you now have the information you need. Thanks!
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