SW Florida Real Estate News
Oct. 13, 2006
viewable online at www.SusanMilner.com/news.html
Wow, it’s October already. And from what I hear many of you northerners are already seeing major snowfall in your area. Our weather is great here J We are about through our Hurricane Season, the weather is drier and mid to high 80’s during the day & low to mid 70’s in the evenings. This is my favorite weather here. I would still like to have a house somewhere up north for the hot & muggy summer months but for Fall, Winter & Spring I can’t imagine a better place to live.
What’s new here? Well let’s start with what is on everyone’s mind right now:
The real estate market
Have we hit bottom? The short answer is YES. Why & how can I say that? I say that because I am working with many buyers right now who are in the process of buying property at some very excellent prices. Prices that you couldn’t touch since probably the beginning of 2005! But will it go lower? Yes, in some areas it could. However, right now sellers realize (finally) that it IS a buyer’s market right now. They are more willing to negotiate as they realize there is a lot of inventory on the market & less buyers out there purchasing. So you can make offers. And you have very little competition.
Now, our season is coming upon us. I think many sellers have the thought that with season will come higher prices. They are going to start becoming less motivated. They will be thinking that another buyer is coming along very soon. And there might be. Now we are back with more competition, more buyers & therefore the prices will stabilize and there will be less inventory to choose from. So basically, yes the prices can go lower but now is a great time to negotiate.
Wouldn’t you rather be buying in a buyer’s market vs. when it turns back into a sellers market?
And just a couple of facts, our pending home sales are up & the interest rates are still low, our local economy is very strong & our area is still growing.
You just read what I wrote to the buyers and now you are wondering if you should be selling now or waiting. Here’s my take on this. If you have a home for sale & you don’t need to sell anytime soon, take it off the market (unless you want to be able to sell & buy another house at a discount). If, on the other hand, you have a house listed for sale & you really need to sell – get competitive. You know you have to be. If you need help with this call me. One of my clients homes is currently pending & they are buying a new home here as well. They were upset that they didn’t get 2005 prices from their house. But they DID get 2006 prices for their new purchase as well. See, last year they may have gotten more for their house but this year they were able to pay less for their new one. So it balances out. Tax rates will be lower this year though – that’s another plus.
Now if you own vacant land here & have been trying to sell it this is a different story. Vacant land here is moving but only the lowest priced properties are moving. There are too many options for a buyer to make an offer on your property if there are 50 more similar lots for sale asking much less. Now, if you have land & do not really need to sell what should you do? Well, I think that if you have equity in the land you should go ahead & cash out. Things could get worse for land. I’m not for sure on this & depending on location & water access, etc it could be different.
We saw this in the 70’s & 80’s when things first started developing so much here. Buyers were paying up to 20-30K for vacant land in Cape Coral for example. The prices quickly went back down to $1-2,000. They were under $5,000 until about 2001-2002. Then they quickly escalated to $20K, $30K $50K $90K (that’s where many maxed at in the NW/NE sections). That was at the end of 2005. All of 2006 we saw them slowly go back down. Now you can again purchase an off water lot in Cape Coral for under $50K! If you are looking for a long term investment, I’d say you should be buying. If you are looking for quick flips you better not buy vacant land. By the way, I have some great opportunities available for vacant land.
I’ll be sending a newsletter out soon more focused to the investor. I recently started working on real estate investing through a self-directed IRA & I will show you how you can benefit from one too. I’ll also touch on some planning tips for becoming an investor.
Also keep an eye out for some great tips for first time homebuyers. Did you know they are getting younger? Yep, we’re getting smarter J And it’s more affordable now!
Ok until next time, remember if you have any real estate questions I’d be more than happy to discuss your needs & how I can assist. Feel free to contact me at anytime.
Newest Listings – HOT!
I have a lot of great new listings to share with you. Visit our webpages for more details.
We are also still looking for additional qualified talent to join our team. Please visit http://www.SusanMilner.com/employment.html for details.
Yours in Success,
Susan Milner, e-PRO GRI REALTOR
Sellstate Achievers Realty Network, Inc. 7431 College Pkwy., Ft. Myers, FL 33907