The Tampa Bay Florida gulf- front condominium market...what about the price swings?
Real Estate Brokers and agents that work in the "beaches" area of the market are very busy these days with buyers seeking to buy condos. Buyers are coming out of the woodwork seeking to buy at "pennies on the dollar" prices. News articles from around the world tell the story of the great collapse in these condo prices. A huge percentage of queries from would be buyers come from area codes throughout the US and Canada as well as from overseas.
Many of these would-be buyers are very disappointed that the prices do not appear to be as low as they had expected. In fact, the price history is very difficult to track by traditional means... the use of "comps" or previous sales of the same type of units in nearby locations in the past few months. In fact, the numbers of sales of higher priced vacation condos are greatly diminished from the hot market of 2003-2007 but the level of interest of new buyers from around the world is huge today.
Here are a few tips:
What we really want to know is what will the condos "appraise" for today vs. what did they "appraise" for at various times in a market cycle? This is the best indication of the degree of market change but on -line and other research is difficult to interpret.
What are the characteristics of the owners and would- be owners of the condos today vs. in times past such as the market peak of several years ago? Vacation condos, especially gulf-front condos, are an item of discretionary spending....people do not need them, they only want them.
How were the condos financed in times past vs. today?
What the goal of the buyers were in times past vs. today?
Would -be buyers should determine if their Real Estate Agent or Broker knows the market and should adjust their plans accordingly. The best way to do this is to talk with them and ask a lot of questions. You would not hire a Podiatrist to do your brain surgery nor a divorce lawyer to handle your real estate needs. It is no different with your real estate broker...none of us are all things to all people!