10 Things You Will Notice After the Sarasota Real Estate Market Has Bottomed

Hi Marc, These are interesting observations.  One caveat, however, is that the news media that keeps everyone full of doom and gloom is reporting national figures, while we know that all real estate is local.  Some areas of the country have already hit bottom and housing prices are beginning to recover.  Other parts probably won't see the turnaround so quickly. 

Unfortunately, many areas with the biggest growth in new housing starts before the crash are now suffering the most from foreclosures, because some of those developers pushed through loans for people who couldn't afford to buy those homes.  With more foreclosures than other areas, they may take longer to normalize.  If only we could ring a bell when we hit bottom so everyone would know when that is! ;-)

Hi Marc,

Great Post!  Seeing a little of that now, Buyers are Buying, just not as fast as we would like!  (Of Course!)  : )
I am in one of the heaviest hit areas with Foreclosures (Phx, Az) and I see a lot of opportunity for smart buyers to buy some great places for around 60% less then just a few years ago. 
I, like you think of this as one of "Those" lessons that people will not forget for a long time.  It is our "Depression" .  Lots of unemployment, homelessness, hopelessness, etc.  It will get better, like I mentioned, there are some signs that it is turning.  It just will be for people in it for the Long Haul. 

Take Care & Fly High In 2009!

I think I'm starting to see a little of several of these items.  More investors are looking to buy; people are beginning to think now might be the time.

I think that we have checked a few of those off of the list here in Atlanta... but wiser isn't going to happen.  There will be a temporary sense of wisdom, but it will be overcome with greed... and the lessons will be forgotten... until just after the next bubble bursts. 

I am thinking that we should be at the bottom now. Since all the media has been all over Real Estate and doom and goom talk should be exhausting itself now...?!

What about the unemployment rate?  You don't take that into account at all.  I think the real estate market will not turn around until the unemployment rate decrease significantly.  At the moment it's still on it's way up and scaring perspective buyers from taking the plunge.

We have a ways to go don't we? Never had so many people ask us about real estate in our life.

we're getting very close to the bottom.  I believe we'll see a real resurgence this Spring into the Summer.  Obviously prices won't come up super fast, but they will start coming up again.  At this point, if you're upside down as a homeowner or investor, there's only so much time that one can afford to have negative cash flow.  Once these people are tapped out, the property falls back to the banks, and ultimately purchased for 50 cents on the dollar.  This dynamic has to run its course.  The main reason that it's on a short leash is that properties have a lower limit at which point the value seems to diminish radically.  Those that have secured interests have to sell before this radical value decline.

We are definitely in the eye of the storm right now...although there are massive numbers of properties that are still on the front edge of this bubble burst scenario.  Everything is so interrelated; to some degree we are fortunate that the economic collapse has been so comprehensive because it is pulling other questionable investments into the price correcting downward spiral.  At least we can take our lumps and start moving forward on more solid ground.

I cant wait for this Spring!  Have you ever experienced an Oregon Spring!  Not to mention the Oregon Summer....!  

Here's to a great 2009!

-Matthew Lind

www.facetrealestate.com 

Marc: Real Estate seems to go in cycles. Just look back in time and see the cycle trends

Marc~ There are definitely many lessons to be learned in all of this.  Hopefully most people will start living within their means and learn to postpone instant gratification!

I agree that real estate goes in trends but I feel that we are in for a longer then average down trend this time around.

I totally love that cartoon, Marc.  Nice post!

Interesting perspective and great to read ...yes Roland real estate does go in cycles.  Hope the cycle goes the right way soon!

Thanks

Tom Davis

Excellent post. But the bottom is only known after it has gone.

Great post - the average person here is just getting wise to the fact that things are in dire straits with the Sterling and Euro almost on par, lots of lays offs, few buyers and an overabundance of homes for sale. We are a bit behind the US, but hope to see the light soon...

nice  post - I am experiencing the 700 plus scenario right now - hopefully things will smooth out sooner rather than later

Marc,

We here in Vegas are already seeing the long-term investor returning to the real estate marketplace, gobbling up lower-end property and generating nice activity. That's a good start.

Marc, love your use of cartoons in your posts! If the foreclosure snowball will end, we'll bottom. As Cindy Jones said, inventory drops, then more foreclosures raise it again. That's the lynch pin for this market IMHO.

Marc,

We are already starting to see a resurgence in our local market and I look forward to seeing your Top 10 happen in the very near future!  Great post!