Market still has plenty to offer.

Because home sales are starting to sizzle does not mean the prices are soaring. But the sun is still shining because home sale activity is the first sign of economic recovery. Prices never go up until the market becomes balanced. That is, the number of listings -- and the number of sales -- are consistently similar in a given time frame. But the next step must also occur. The volume of sales must top the number of listings to create a scarcity in the market. Scarcity creates demand and demand increases the market value of the property. More simply, there exists more buyers than sellers.

The reality of this active market is that prices are continuing to drop slightly. Sellers need to be educated that the market continues to have a substantial oversupply. Much of the oversupply are short sales or foreclosed property. Sellers need to be aware of short sales if their property is on the market competing against this type of listing. Short sales take many weeks and sometimes months to close.

Lenders who are working with sellers on short sales need considerable information from both the buyer and the seller. The seller must prove financial hardship, in most cases, to qualify for a lender-approved short sale. The buyer must be qualified and patient.

The seller still has control of the property and may or may not accept a contract presented. In some neighborhoods, there are few short sales or bank-owned properties. The values in these neighborhoods tend to hold and not decrease as in the neighborhoods with an abundance of short sale listings. If one or two homes in a large neighborhood are short sales, this may not decrease the market value of the neighborhood.

As the market stabilizes, the sales become more of an "arms-length" transaction. That is, the sellers are not under duress and values begin to hold. Short sales are usually placed under contract quickly and with multiple offers. There is a lengthy delay in closing due to the lender-required procedures. Buyers who are patient usually close with an excellent value. There are also many excellent values that are not short sales. Buyers are smart by buying now even if the prices dip slightly in the future. The interest rate is so low that it is highly unlikely that these conditions can continue.

If the rates increase, the buyer loses the advantage that he/she has in today's market. It is obvious with this type of sale activity that the selection of the best values in price, location and condition will soon be picked over. The time is right to buy.

Brevard a great place to call home.

Spectacular launches at dusk remind us that astronauts are a part of this world and more. Hummingbirds bring our focus, not only to the beauty of those tiny colorful birds, but the abundance of tropical flowers that surround us. Calm river waters reflect the clear blue sky and give us a peek at the old horseshoe crabs, schools of mullet, graceful dolphins and colossal manatees. The rolling waves on Brevard County's beaches are speckled with our talented surfers, sandpipers, pelicans and mischievous seagulls.

Large, rare Loggerhead turtles select our shores to nurture their eggs until hatchlings are born to begin the cycle of life. Croaking frogs and wild herons awake us to the stunning beauty of nature that surrounds us. As the foreign birds flock to us, the British visitors are in a feeding frenzy over Brevard values. Even though the pound went down, the "down" of the pound is offset by the down in the prices.

First-time homebuyers swarm as $8,000 in incentives, low rates, (below 5 percent), and a great selection of inventory entice them to purchase now. The retirees can delight in the lower values as they purchase with limited dollars from the loss in their IRAs. Larger families wanting to upgrade, lose in the sale, but gain more in their purchase.

Find peace in the positives of nature, the true friendliness of our people and fabulous value in our real estate today. From my perception, what's not to love in Brevard County?

Short sales abound...

What is this term "short sale" that everyone is talking about? A short sale is a sale of a property that is short of the mortgage balance owed. Normally, if one owed more on their home than the value or sale price, the seller would bring the difference of the balance owed to closing in addition to the closing costs.

Yes, some sellers have come to the closing table with a check in excess of $100,000 just to sell their property in a tough market. In this market, when a seller has negotiated with the lender an agreement to sell the property and have the lender take a loss on the mortgage, this is termed a short sale.

Typically, the homeowner has missed some payments on the mortgage. In addition, the homeowner is not financially capable of making continued payments and is risking losing the home to foreclosure. The short sale precludes the foreclosure and allows the seller to close before the seller loses the home. Yes, it is a loss for the seller and a loss for the lender.

The benefit, as I see it, is the fact that the bank or lender does not have to wait while the foreclosure proceedings are completed. The foreclosure procedure alone, can result in high attorney's fees, a considerable amount of time (sometimes more than one year), deterioration of the property and a loss which is usually greater than the loss incurred from a short sale.

The benefit to the homeowner is being rescued from foreclosure and the humility of such a procedure. The term short sale is so widely used and accepted it does not hold the same stigma as the term foreclosure. Yes, the owner suffers some embarrassment but in this economic state, but most of us are humbled simply by the fact that we have all lost in this economy.

Short sales are a sign of the times. The market is full of short sale listings. A good Realtor can give you a list of such properties. Do not think that all of these listings are the best buys on the market as many sellers, who have equity in their property (since they purchased their home many years ago) are willing to sell at today's short sale prices.

The best buys of short sale properties are being absorbed very rapidly in today's market. Short sale listings often bring multiple offers. In some cases, the agreed sale price is more than the price agreed to by the lender. The fact that there are multiple offers occasionally push the price of the property slightly higher. Get those great buys while you can, the market is sizzling with cash buyers.

Smart pricing saves the day.

Buyers are here and are actively purchasing well-priced homes. People who are unrealistic about the state of the market and overprice their homes have a negative effect on the local market. The facts are sound.

If your property is overpriced, why keep it on the market? It does not have a chance of selling in a buyers' market. In fact, the overpriced property clogs the market with additional inventory. If you, as a seller, want to test the market, now is not the time. Market value is determined by the balance of supply and demand. An surplus leads to lower prices forced by such competition. A deficit leads to an increase in property values.

A unmotivated or unrealistic seller needs to withdraw his property from the market and wait, yes wait, until the market catches up to the expectations of this seller. In this way, the inventory will decrease and the process of market correction can be expedited. The premise that the first sign of economic recovery is in the real estate market indicates the need for sellers, who are "not" motivated, to eliminate this excess inventory and assist in economic recovery.

The real estate market continues to increase in activity and in the volume of sales. This type of activity is seen in this area and in many areas throughout the nation. If these sales continue for a long period of time, economic recovery is in the future. Optimism is a state of mind.

It is a conscious state and at this serious time, it is important we, not only think positively, but we act positively. If there is anything one can do to assist in economic recovery, it is these positive thoughts and positive actions.

It pays to invest in your house.

The sprinklings of economic recovery are seen in today's real estate activity. Recently, I have received positive communication on the state of the activity in the real estate market. Again, the real estate market is believed to be the first indication of change in the economic situation.

We are far from increasing property values due to an oversupply of inventory. However, we are active, and the activity continues to increase. This is our positive sign of recovery for the near future. I would like to review some information given to me by Binki Kaiser, a local real estate expert, from the National Association of Home Builders Web site:

Statistics show that the median price of a house in 1996 was $140,000. Today, that same home would have gained more than $100,000 in value and in most cases locally, this property would have doubled in value.

In addition to looking at the return on this initial investment, the fact that the homeowner would have paid down a significant portion of the mortgage in the interim, creates even more net worth for the owner. The initial investment would typically have been 20 percent or roughly, $28,000. The value today of $280,000 with a $28,000 investment is an impressive return.

Homes tend to increase in value while the alternatives can be extremely volatile. Believing in private property rights and home ownership, in my opinion, is living the American dream. Repeatedly, I have stated that investing in one's home is one of the safest investments for long-term appreciation and security.

Words of wisdom in this market and in any market: Do not take the equity out of your home. Leaving the equity in your home is a wise and safe move for future planning. When selling your residence and purchasing a new home, transfer the equity of the home sold to the new purchase and do not be tempted to spend the wealth you have created in home equity.

This economic situation is teaching us the safe, conservative and secure method to handle real estate. The problems of the past and present teach us the conservative ways of the future.