What will be your next move?  As the year comes to a close, we are evaluating what the market has done, and what it may do in the next twelve months. We have seen some movement in "Work Force Housing" Huh? The new catch phrase for "Affordable Housing" without the stigma. Work Force housing are homes priced in the $200K range. Where average hard working people can qualify. This includes first time home buyers.  The market segment that was driven out in the panic buying of 2005. As the days on market increase many breeching the 200+ time frame, we have seen what I would call positive pricing adjustments in Central Florida.

If I were to tell you I had a stock which would yield a 20% return you would jump on it right? Well If I were to tell you your house should yield a 20% return you would think it was too low! The dilemma most home owners are facing is a realistic return on their investment. For over three decades, the national average was 6.5% gain on the value of a home. Until 2005.  Then it was 300%. Why? Simple. There were not very homes offered for sale.

Did you know the "Gold Rush" was actually a publicity stunt invented by a journalist in Alaska (Skagway) and the result was millions of people packing up to face the elements of "Striking it rich".  In reality for what was nothing more than gold dust? It is true. 

What was true then is true now. People Consumers believe what they hear. The media has played a vital role inthe build up and decline of our Real Estate Market. Now, the fed is waking up and realizing that home value depreciation effects EVERYONE. The interest rate has been favorable, until they raised it 19 times. What resulted was instant stagnation. We saw it immediately here in Florida. Hyper inflation caused many would be buyers to not qualify for homes, and effectly were shut out of the market.  Offers poured in above apprasial value. Taxes went through the roof. And the end result was.... the average consumer had less buying power in every sector of the market. Let us not forget about pre-election gas prices shall we? Parallysis.  Only recently have we seen the aspirin effect. Increased blood flow (Cash) to the market place. Sure we have many disappointed investors. And we still have some unreasonable sellers.  The good news folks is TIME IS ON YOUR SIDE! 

If you can survivr waiting it out, likely you will see an incrtease in homes selling in the "Work Force Housing Sector".  Teachers, Firefighters, public servants... they are all out there waiting it out. Keep a watchful eye on apartment complexes. When vacany rates go up, so do house sales. 

If we are successful in getting our clients to accept a rate of return that is rational and reasonable we will have a banner year in 2007. Here is all of you hard working agents out there in the trenches!