Stick your head out the window.
Real estate, like the weather, is local. When I want to know what the weather is like, I stick my head out the window. Sure I like to see the hurricane trends and big weather fronts, but for the most part, and this is especially true in Florida, it could be raining five miles from here and sunny in my back yard; Flooding in downtown Estero and dry in Naples. The weather tomorrow will be like today; Only a little different.
Every morning I read the Wall Street Journal to get a sense of the global and national economic news and trends; but when I want to know what’s going on in real estate I look around outside my door or I go out and “run the traps”
When I stick my head outside my window here I see:
Inventory is down: last year 12,000 homes on the market locally. This year 4000. This reduction in inventory is shoring up prices, and homes are getting multiple offers over list. Really.
Hot spots are hotter. Siesta Key. Old McGregor in Fort Myers, downtown Naples, Gulf harbor, Fort Myers Beach….all getting sales prices higher than ask.
New Home Sales from Stock, DR Horton, Adams Homes. Lennar and others are running at a brisk pace.. want to see new home construction projects look here.
Interest Rates are at an all time low. Even those with a 5% mortgage rate are considering refinancing. Explore this here.
Investor “deals” are drying up. While there are still many rental homes to acquire, cap rates are decreasing.
Old developments are breathing new life. Oasis, Entrada, Billy’s Creek, Greens Edge: New owners, new money, new marketing teams and new product.
Back to traditional real estate with conventional buyers, conventional financing, and good old fashion sales and marketing hard work.
Return of the Commercial Market. In fact we will be expanding our commercial division because of this. Restaurant sales; Strip centers; leasing: All at a fast pace today. We are making offers for clients on developable land: There was NONE of that a year ago except for perhaps some land banking.
Busy engineering firms. The engineers get the property first. These are the guys that answer questions like how many houses can we builD? What about the road access? Where will we put water retention? They see the fist signs of recovery and are in full work mode today.
Busy Buyers agents. We have more buyers that houses to sell them
Slow listing agents. (see above)
Busy restaurants and clubs. ( A good indicator for us)
An alternate name for this article could be “In Spite of” As in: in spite of most economic indicators Florida is recovering. Florida’s recovery, even one that stumbles and then gets up and keeps on walking is better than a recession. As in: In spite of the type recovery we are in, it sure beats the alternative.
Many years ago I had a dry wall man working for me rehabbing homes. The quality of his work was excellent although his work habits left much to be desired. I once made a comment about his speed. He said, “Gregg, I only have two speeds, and if you don’t like this one, you sure as hell won’t like the other”. I like the recovery Florida is in and I am anticipating continued growth, reduced inventory , higher housing prices, and many new homes as well as projects coming out of the ground.
A University of Central Florida forecast says the construction sector lost 384,000 jobs from its peak employment levels before the recession and will not return to those levels until 2031. The UCF forecast projects unemployment will stay above 8 percent through the second half of 2014 – an estimate consistent with recent state forecasts; payrolls will grow gradually over the next three years, returning to pre-recession levels by the end of 2016.
Construction starts, on the other hand, are 32% above a year ago according to McGraw-Hill Construction with more than $2.4 billion in contract moving forward in June.
Florida is growing and will continue to grow,, If you are getting real estate info, out down the WSJ and call a local Realtor. And ask him to stick his head out the window.
By the way. Market America Realty Group has the best property search site on the internet. Our results pages have more info than any other website. If you are tired of looking at the same old search results, give us a test drive. You see, we buy the raw data from five MLS systems, and then present it in a manner that is most helpful to you: with walking tours, shopping info, schools, and a local map of what else in on the market so you can easily compare.
Gail and I took ten days off and spent most of them lazing around up in the mountains at a friends lake house. We read books, took walks, and in general stayed out of touch with the internet and email. For one day we did tour a project in the shadow of the original Woodstock festival site in New York: Chapin Estate. Only 90 minutes from Midtown New York, this lake and woods paradise is the closest mountain retreat to the city and worth a visit. Let me know and I will hook you up for a visit!