LOCAL MARKET REPORT – AUTUMN 2009

Our message continues to be NOW IS THE TIME TO BUY single family homes and vacant land in the Englewood area. Don’t be put off by the doom and gloom merchants in the media! Sales volumes of single family homes are increasing and inventories decreasing as buyers take advantage of keen prices offered by bank owned properties and 'short sales'. If you are interested in bank owned or short sale properties contact us for details.

We remain in a buyers' market for residential real estate in the Englewood area. This presents buyers with a golden opportunity to purchase property today at 2003 or earlier prices. Many buyers however are sitting on the fence waiting for the so called 'bottom of the market', not wanting to buy today for fear of missing a further drop in prices tomorrow.

The bottom of any market can only be established with hindsight and whether you catch it or not is a game of chance. If you want to buy and hold on to property for a few years then you are likely to have capital appreciation over time - history tells us this. Indeed national statistics published by the National Association of Realtors and obtained from the US Department of Housing & Urban Development show that, over time, most homeowners will steadily build equity. For example, during the past three decades, home values nationally have increased an average of more than 6.0% per year.

So, if you are ready willing and able to buy today and your property is readily available at a 2003 or earlier price, does it matter over the medium to longer term whether you might save a few dollars by waiting, but in doing so perhaps see the property you had your eye on sold to to someone else, who saw the opportunity and took it?

By and large sellers have now got the message, are pricing realistically and are now starting to dig in their heels on price. There is even a shortage now of some types of homes, particularly newer homes as builders have not been building for 3 years or more.

There are currently 1,300 single family homes for sale in the Englewood area at considerably reduced prices compared with 3 years ago. This represents around 11 months inventory at current sales volumes.

To Sellers our message continues to be price realistically and, in the case of re-sale homes and condos prepare and stage your property for sale. Buyers still have the upper hand and your property has to stand out from the crowd. To Buyers, our message is that there is a real personal buying or investment opportunity. If you are thinking about buying beachfront property then now is a great time to buy. Don't miss out! These bargains won't last for ever

Looking ahead, the fundamentals of our local real estate market remain soundly based. We have lower priced homes than neighboring areas; there is an availability of building land (including waterfront); we have historically low interest rates (5% or lower); property taxes have been partially reformed with more changes in the offing; the cost of homeowners insurance is reducing as a result of greater market competition and reducing building costs and, despite what you might read/hear in the media to the contrary, mortgage finance is still plentiful and available at competitive interest rates. For qualifying first time homebuyers there is the added benefit for 2009 (and likely to be extended to end April 2010) of the $8,000 tax credit. Depending on personal circumstances, short-term bridge loans are now available from a variety of lenders so that buyers can tap the benefits of the $8,000 Federal Housing Tax Credit for First-Time Home Buyers upfront. These bridge loans will enable buyers to use the money for down payments and closing costs with the tax credit as collateral. Consumers will have to pay the money back after they’ve filed their tax return and received a refund.

To cap it all we have the added bonus of being on the beautiful Gulf coast in SW Florida!

Contact us today to discuss your real estate requirements.