My New Blog

It is our current opinion that the local and surrounding markets are still experiencing high inventory pressure ( see the Trend Analysis link in our website ), along with a decrease in available credit with the tightening of lending criteria and the reduction of loan programs. Short sales are competing with typical motivated sellers, whereas in the recent past short sales were not prevalent , and were not left in a competitive condition. Current sales are showing that buyers are purchasing in volume rates similar to 2001. Homes that sell are typically the best priced home with the most amenities as compared to others. Buyers are hesitant and are looking for information that the home they purchase will be a good financial decision in the long run. Banks are still a couple of months in the past with their short sale price negotiations and builders are still offering multiple discounts through the adding of upgrades and closing costs, which are still keeping the bottom out of sight. Property taxes should continue to fall with the new Florida homestead exemption and portability law passed in January. However, they will fall more, as property values decline and the local municipalities property appraisers’ office takes in the new data in November 2008. Housing suppliers pricing will be curtailed as new home starts fall and remodeling decreases due to refinancing constraints , this will cause housing insurance rates to fall. Interest rates are still low, however, the median income does not support current median house prices yet. Our crystal ball is still not working so we will continue to track all local Real Estate information to sight possible trends through the analysis of the most recent data. Check back here in the future for updates.  02/2008.  

I have recently spoke with some local Realtors in the Lithia and Brandon area who have differing opinions on the current market conditions affecting real estate. I thought about both views for a while and the one that seemed most prominent and repetitive out there is the doom and gloom outlook. Yes, there is high inventory, yes, there is decreased capital, yes, there is high foreclosure and short sales, and yes everything is getting expensive with less money to spend. However, I remember as a young child my Father a ( Realtor his whole life ) , going through the 70’s and 80’s. And what I remember is that overcoming extreme adversities can be accomplished. It can be done, as I witnessed first hand. There are probably more opportunities now, than in the recent boom for Real Estate Professionals. My personal belief is to understand your threats, weaknesses and counter them with your strengths when the opportunity presents itself. We will continue to slide or “ correct “. I just hope the free market system is not tampered with by government. I recently watched an interview with Alan Greenspan, his view was quite poetic rather than predictive. What I took from his interview was , it will happen when it happens, and do not get discouraged as this is not the first time this country has been through decline. It is just the first time in which the information of it,  has been made so readily available to the average “Joe” ( IE. How to create panic and stress thank you press). So to my friend who was somewhat discouraged in their Real Estate Profession,   I would challenge you to identify your strengths that will enable you to overcome the present obstacles you face when the opportunity presents itself.   I look forward to your views and questions. If you have a questions that involves data research , ask it and I will research it and relay the results to you. I used to do that kind of work in 10 to 14 hour stretches so ask away, I am interested.