The Real Estate market has been on a wild ride over the past several years. With the huge gains that were experienced for several years it is only natural that the market has now readjusted. Although the readjustment has not been kind to many people, it will be an important factor in the future health of our Real Estate market. In 2006 we had a 45% decrease in sales compared to 2005. Many of the so called economists predicted that the sales would continue to slide for years to come. Not so fast, 2007 sales were up 7.5% over those of 2006. I can only see this as a positive sign of what is to come in 2008.
Will we have another increase in 2008? I believe the answer is.........absolutely so! Many investors and those looking to purchase second homes have been patiently waiting on the sidelines for the past 5 years. People are beginning to see the deals available and buy them up now. There are many properties priced below the cost to rebuild and many back to pre-boom prices. This is just another indicator that we are near the bottom of the market. Many foreign investors are working with local developers to buy up stagnant projects, just another key sign that we are close.
Despite all of the positive signs that the market has leveled off, it will still take time to eat up the outstanding inventory. I think we are looking at two to three years before our inventory is back in line with the sales. The day of the flip is over for now, but this will continue to be a great investment for the future. I tell of my clients that if they are looking for an investment to hang on to for the next five years, the time to buy is now. You can't beat everything we have to offer in this area and we are still very undervalued compared to other regions of Florida. Look for sales to be stronger than we saw in 2007 with overall sales price possibly falling slightly. Mortgage rates being stronger than we have seen in years, a large inventory, and short sales and foreclosures have created an excellent buying opportunity here in the panhandle.
All percentages include single family homes from Destin through Inlet Beach.
Josh McLean
Realtor
Clay and Company, LLC
850-502-0470
www.JoshMcleanHomes.com
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