Crescent Beach Condos summer 2009
We are finally starting to see what appears to be the "bottom of the market" in as far as condos at St. Augustine Beach and Crescent Beach are concerned. ( Fish for deals now on our main website at www.crescentbeachrealty.com )
Here is a reliable indication of why we think so. We sold numerous condos on the beach in April and May 2009. By June it was becoming obvious to those who keep up with such only a handfull of oceanfront condos were left on the market that appeared to be priced at current "market price"
What is "market price?"
Market price is what buyers are willing to pay for an oceanfront condo in our area. Not only our office but several others had buyers who had cash and were ready to lay their money down on a beachfront condo they thought was a good deal. Talking with numerous buyers, they all told us the same thing. They thought it was time to buy. Then along in mid May a funny thing happened. People were still making offers but sellers all of a sudden started thinking "maybe I'm selling too cheap" and started getting stubborn on their asking prices. This occurred no less than 6 times in the past 6 weeks with our office alone. We had bona fide offers on our listings, we wrote bona fide offers on other office's listings on the beach. The sellers would not negotiate significantly and negotiations broke down and everybody walked away.
Houston, we have a problem.
I believe this is becoming a trend during mid summer 2009. Those property owners who were desperate to sell have sold out. Those who "would like to sell" have dug their heels in. Buyers who "had to have it" bought those best deals, those who "would like to have it" have walked away. Thus, a stalemate of sorts.
Ronnie Tumlin who knows all, sees all and predicts all forecast two years ago when the market went south it would continue to fall until we got to the point that sellers and buyers would start walking away from deals. Sellers thinking they were selling too cheap and buyers afraid they would pay too much. This folks is bottom. Flatline, stuck in the mud.
Does this mean the market will start up? No. It means we are at a stalemate right now and buyers are waiting for sellers to blink and vice versa. Banks still will not make loans on condos so cash buyers are king and they expect to be treated as such and sellers don't realize cash is king right now. Back a few years ago we didn't care if somebody had cash or not, ANYBODY could get a loan so cash was insignificant. Today, nobody can get a loan and cash is definitely king but it is hard getting sellers to believe it. They tell us: "my bank will loan money on a condo, they said so" I regularly tell them okay, go apply for a loan. Tell them you want an equity loan on your condo and tell them you need 80% of its value and you want it in 30 days. They will tell you okay, fill this out. Guess what, they won't make you the loan unless they keep it in house. Fannie and Freddie will not buy the condo loans from any of the banks right now and that has been a policy for nearly a year therefore the bank cannot sell the loan like they always could before thus killing the finance market for condos. Donald Trump can't get a condo loan right now unless he wants to pay 7% and put 30% down and that's if he can get his local bank to do it if they can afford to keep it "in house" which most local banks can't afford to do right now. Go ask the CFO behind closed doors and ask him to tell you the truth.
Anyway, we believe if you want it and you can get a palatable deal take it and take it now. Whether you are a buyer or seller doesn't matter. Congress is scaring people to death, if you think you need to bail because of your age and stash the cash....do it. If you are younger and want to move cash into real estate so the government can't confiscate it...do it. Oh, you haven't read about congress talking behind closed doors about confiscating retirement accounts in the next few years? Book it my friends, it is in the bull pen warming up. You won't hear about it until the house is re elected in 2010 a little more than a year from now but it is front and center on their next big agenda. They will want to confiscate all retirement accounts and tell you the money will go into social security and they will start mailing you a check monthly when you retire. By the way, that check will barely pay your medical deductibles every year, surely won't pay your property taxes or medicine bills and your heirs will not get your retirement upon your demise, the Congress gets it all and gets it now and hands you an IOU. How can they do that? Easy. The vast majority of voters have no retirement accounts, they are the perpetual grasshoppers. You the squirrels who have saved money all your life for a great retirement are in the vast minority. Labor unions have seen their retirements evaporate so the Congress wants to give them their money back and where will it come from? YOUR retirement account. Next case, your honor.
People alot smarter than me are buying condos with their retirement monies. We did two of those in the past 30 days for buyers. Other buyers are taking their cash out of banks and purchasing condos on the beach, 80% of all our sales this year have been to cash buyers who are uneasy about their cash sitting around earning half a percent, they think the money is better off in a beach front rental property. We can all learn from rich folks so take note. Alot of older owners have lost their shirt tails in the markets and need the cash to live on so their condos are their retirement account backups of sorts and they are selling but they aren't taking it on the chin they're taking "market price" most of the time.
We currently have two beach condos on the market that are outstanding bargains, at Barefoot Trace and Summerhouse. call us for more info or visit out website and see all the condos and prices on the entire beach. 904-471-9696
Ronnie Tumlin, Crescent Beach Realty of St. Augustine Inc. email complaints to email@example.com or visit our website at http://www.crescentbeachrealty.com
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