Despite the economic doom and gloom being put out daily by the mainstream media, it seems there may be an uptick in the current residential real estate inventory absorbtion rate. In my market, central and southwest Florida, indications are that buyers have gotten off the fence and are starting to make real estate purchases again, especially as concerns distressed real estate. The rate of incoming offers on listed properties is up, and more importantly, the rate of closed sales is up. That's good news. It means that buyers are tired of waiting for the pricing bottom, that they see value in the current pricing, and that financing is relatively inexpensive and available.
That said, it's far too early to predict an upward trend of sales activity, but in the last few months sales volume has substantially increased. We're experiencing that within our three real estate brands, and we're hearing that from other brokerage firms as well.
Because available inventory is also increasing, we are not predicting an absorbtion rate equal to the gain in inventory. But in this climate, we welcome any good news. The residential buyer profile is mostly primary home buyers, with a smattering of second and vacation home buyers. We're seeing some international clientele return to Florida real estate as well, with German and Canadian buyers taking the lead.
On the commercial side, we're seeing renewed interest in the acquisition of value assets - those properties which return a significant rate of return, or those that are value-added self liquidating. These are very hot right now. User properties are also being sought, from small retail storefronts to warehouse/distribution properties.
The overall good news is that sales are up across the real estate spectrum - at least for us. As we continue to expand our branded operations into new markets, we expect to continue to capitalize on this rally. I hope it becomes a trend, and I believe it will, but only time will tell.
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