Let's cut to the chase.
Here's a snapshot of the current market information since January:
--- In condominium sales in Brevard County, the number of new listings coming on the market has been consistently dropping since January. So our supply is decreasing.
Prices of sold condos show the lowest average sale prices in February and have been increasing since that time but not quite as high as the sale prices in January.
These statistics support my opinion that the market has bottomed out in this category. Cautiously, I report that we are still showing an oversupply.
--- Residential sales indicate the lowest pricing in April and the highest pricing in March. May sales show an increase over April prices.
The number of new listings coming on the market are at an all-time low since January. Sales volume peaked in April and contingent contracts show a high in April, which may cause a spike in the volume of closed sales in the next few months.
My data source shows a slight increase in sale prices since April, but sale prices are still lower than those reported in January.
This is, again, an indication that the market may have bottomed out.
New listings coming on the market are definitely reduced by a significant number and show a consistent reduction since January. An oversupply still exists in this category but some areas show a limited number of available properties.
This, in my opinion, is a good sign that this market is recovering. If you are a buyer who is thinking about buying, consider putting your thoughts into action.
--- Slow and low sales still plague the vacant-land market. Hopefully, when the housing supply begins to balance, the vacant-land sales will increase and new construction will pick up.
--- Townhouses also show fewer new listings in somewhat of a consistent manner since January until the end of May. Townhouse prices were at the lowest point in January, peaking in price in February, March and April.
May prices were higher than January's prices, with the volume of sales indicating an increase over January, February and April.
Sellers in today's market need to be in tune with pricing and be willing to have their homes in show condition when appointments are made.
Pricing your property to be one of the best of the three good buys shows your willingness to entice offers from eager buyers.
A note from last week: My column included a photo of people moving with a caption that indicated 16,000 people move to Florida each day. The caption should have said come to Florida each week.
Sunday, May 25, 2008
Sunday, May 18, 2008
Good buys abound in Brevard
Brevard County is moving up.
About 16,000 new people come to Florida each day.
How do we capture our fair share in Brevard?
We have all of the ingredients of a healthy economic base: diversity in businesses, the corporate headquarters of several companies, an abundance of recreational activities and a climate many people enjoy.
The hiring of new employees adds to this strength in our housing market in both sales and rentals.
Brevard County's affordable housing market did not exist in 2005.
However, the current affordability will lure more residents to the Space Coast and pull us out of our housing glut quicker than other areas throughout the United States.
A continued upswing in sales and rental activity gives local residents the encouragement to sell now, even though the prices are low.
Residents can still get a good value when moving up to a larger home or scaling down to a smaller residence. It continues to be a great time to buy.
Action also continues to increase in the resale housing market, and developers are beginning to site properties for future development, but those new developments could take years to be ready for consumers.
Values on vacant lots ready for new construction are truly "outstanding buys" at this time. Builders are offering competitive prices for building single-family homes and paperwork for new permits is being filed.
Although there remains an oversupply of homes, condos, townhouses and land, consistent increased sales activity is apparent in all price ranges.
About 16,000 new people come to Florida each day.
How do we capture our fair share in Brevard?
We have all of the ingredients of a healthy economic base: diversity in businesses, the corporate headquarters of several companies, an abundance of recreational activities and a climate many people enjoy.
The hiring of new employees adds to this strength in our housing market in both sales and rentals.
Brevard County's affordable housing market did not exist in 2005.
However, the current affordability will lure more residents to the Space Coast and pull us out of our housing glut quicker than other areas throughout the United States.
A continued upswing in sales and rental activity gives local residents the encouragement to sell now, even though the prices are low.
Residents can still get a good value when moving up to a larger home or scaling down to a smaller residence. It continues to be a great time to buy.
Action also continues to increase in the resale housing market, and developers are beginning to site properties for future development, but those new developments could take years to be ready for consumers.
Values on vacant lots ready for new construction are truly "outstanding buys" at this time. Builders are offering competitive prices for building single-family homes and paperwork for new permits is being filed.
Although there remains an oversupply of homes, condos, townhouses and land, consistent increased sales activity is apparent in all price ranges.
Sunday, May 11, 2008
County's market getting better.
The Brevard County real estate market continues to show signs of improvement. Good signs.
There are fewer listings on the market in all types of residential properties -- single-family homes, condominiums, and townhouses.
It's not a significant number of fewer listings, but a lower number than the preceding months.
Statistics show more sold residential properties than the preceding months. The largest number of sales are in the category of townhouses, followed by condominiums.
This has been our most saturated market. It appears that buyers are seeing the values and deciding that these two types of properties are good, if not, great buys these days.
The most significant statistic is in the area of "contracts pending or contingent."
This categorizes those properties that have negotiated an agreement to sell (under contract) but have not yet closed. This figure, if these properties close, will show a 30 percent increase over recent sales in all categories of residential properties.
But let us be realistic -- the inventory still is significantly greater than the current number of buyers, so we are still in a buyer's market.
My report indicates that the market is due for a change in the future.
Just how does the real estate market change?
Slowly, even though things are improving.
There are so many existing properties on the market. The many selections that buyers have is decreasing, however, there still are many properties to choose from.
The best buys and the most desirable properties, will be picked up first.
The market, if the action continues at this rate, will then go to a "balanced market."
I predict that this will happen in most areas within the next 18 months.
Some areas show indications that this change will happen sooner and some later.
This is, of course, is determined by the number of listings and the action in a particular location.
I see the market balancing out, but I do not predict that we will go to a seller's market any time in the near future. The balanced market will show appreciation in value say 2 to 5 percent a year.
Our dreams of returning to 30 to 50 percent market appreciation are only dreams.
If you are moving within Brevard County, "buy low, sell low" is the way to go.
There are fewer listings on the market in all types of residential properties -- single-family homes, condominiums, and townhouses.
It's not a significant number of fewer listings, but a lower number than the preceding months.
Statistics show more sold residential properties than the preceding months. The largest number of sales are in the category of townhouses, followed by condominiums.
This has been our most saturated market. It appears that buyers are seeing the values and deciding that these two types of properties are good, if not, great buys these days.
The most significant statistic is in the area of "contracts pending or contingent."
This categorizes those properties that have negotiated an agreement to sell (under contract) but have not yet closed. This figure, if these properties close, will show a 30 percent increase over recent sales in all categories of residential properties.
But let us be realistic -- the inventory still is significantly greater than the current number of buyers, so we are still in a buyer's market.
My report indicates that the market is due for a change in the future.
Just how does the real estate market change?
Slowly, even though things are improving.
There are so many existing properties on the market. The many selections that buyers have is decreasing, however, there still are many properties to choose from.
The best buys and the most desirable properties, will be picked up first.
The market, if the action continues at this rate, will then go to a "balanced market."
I predict that this will happen in most areas within the next 18 months.
Some areas show indications that this change will happen sooner and some later.
This is, of course, is determined by the number of listings and the action in a particular location.
I see the market balancing out, but I do not predict that we will go to a seller's market any time in the near future. The balanced market will show appreciation in value say 2 to 5 percent a year.
Our dreams of returning to 30 to 50 percent market appreciation are only dreams.
If you are moving within Brevard County, "buy low, sell low" is the way to go.
Sunday, May 4, 2008
Peaks, valleys continue
The flurry of action continues in today's market.
Reports in some beachside areas show three times more contracts on existing properties in the most recent 30-day period.
Think of this: We were in a market with an absorption rate --that is, the time it takes to sell an existing inventory of homes -- of two to three years.
If the action continues at the same pace as in the past 30 days, the absorption rate could shorten to about one year in some areas.
Buyers who have been searching for their dream home need to focus and commit or they might lose the property they've been hoping to buy.
Time on the market does not dictate that the home is not valued properly.
Sellers have had to adjust to the decrease in value as indicated by the dropping of the home's listed price over the period of time on the market. Sellers who delayed in reducing their price might have missed the opportunity to sell for a higher price as the market was dropping rapidly.
Many sellers have turned down prices higher than their current list prices.
If the seller has reduced his/her price over the period of one or two years, the price may now be ready to sell -- still with some negotiation.
Where are we headed?
Not so fast, I do not believe that this action can continue at this same rate for the next year.
I think that we all know that, even in an active market, there are peaks and valleys.
There is a flurry when spring arrives, and families look to move over the summer. There is a typical slowing when the children get ready to begin school after summer vacation.
There are popular vacation months where sales slow. And we all know that when the first snow falls up north, the phones begin to ring in search for properties in Florida.
Right now, I see this market as sizzling.
I see buyers viewing less of a selection for their dollars.
The best-priced and nicer properties will be sold, but there will be properties on the market.
Buyers will watch the sold properties for comparison and will be reluctant to offer more than recent recorded sales indicate.
Therefore, my forecast is this: Continued action, but at a realistic and more consistent pace.
A balanced market is in our future. Market appreciation will come in pockets of areas that show less of a selection, as in the market price of $700,000 to $1,000,000 and in specific areas of newer, more custom homes if there is not an oversupply in a specific neighborhood.
There now exists the possibility of future appreciation or limited selection.
Sell low, buy low.
Reports in some beachside areas show three times more contracts on existing properties in the most recent 30-day period.
Think of this: We were in a market with an absorption rate --that is, the time it takes to sell an existing inventory of homes -- of two to three years.
If the action continues at the same pace as in the past 30 days, the absorption rate could shorten to about one year in some areas.
Buyers who have been searching for their dream home need to focus and commit or they might lose the property they've been hoping to buy.
Time on the market does not dictate that the home is not valued properly.
Sellers have had to adjust to the decrease in value as indicated by the dropping of the home's listed price over the period of time on the market. Sellers who delayed in reducing their price might have missed the opportunity to sell for a higher price as the market was dropping rapidly.
Many sellers have turned down prices higher than their current list prices.
If the seller has reduced his/her price over the period of one or two years, the price may now be ready to sell -- still with some negotiation.
Where are we headed?
Not so fast, I do not believe that this action can continue at this same rate for the next year.
I think that we all know that, even in an active market, there are peaks and valleys.
There is a flurry when spring arrives, and families look to move over the summer. There is a typical slowing when the children get ready to begin school after summer vacation.
There are popular vacation months where sales slow. And we all know that when the first snow falls up north, the phones begin to ring in search for properties in Florida.
Right now, I see this market as sizzling.
I see buyers viewing less of a selection for their dollars.
The best-priced and nicer properties will be sold, but there will be properties on the market.
Buyers will watch the sold properties for comparison and will be reluctant to offer more than recent recorded sales indicate.
Therefore, my forecast is this: Continued action, but at a realistic and more consistent pace.
A balanced market is in our future. Market appreciation will come in pockets of areas that show less of a selection, as in the market price of $700,000 to $1,000,000 and in specific areas of newer, more custom homes if there is not an oversupply in a specific neighborhood.
There now exists the possibility of future appreciation or limited selection.
Sell low, buy low.
Subscribe to:
Posts (Atom)