What's happening in the local real estate market...

The question of the year appears to be what is happening with the market pricing. It is now very clear that 2006 was the year of the serious downward price adjustment. Believe me, it was not by choice.

The boom began when investors "discovered" our area in 2001. We had thousands of lots available with many priced for just a few thousand dollars. This set off a buying frenzy. The local builders had a hard time competing with the investors for lots and started trying to buy in large volume as well. This caused the strongest demand for lots this market had ever seen. The prices skyrocketed! We all enjoyed the high prices. Unfortunately, the day came when the prices became too high. The investors could no longer buy a lot and "flip" it for a profit, they walked away. That left all of us holding a big bag of very expensive lots. The demand started to die the last quarter of 2005 and continued into 2006. (Are we glad 2006 is over!) When the phone calls, letters and postcards stopped coming, the lot owners hit the panic button. Many were holding out to see how high the prices would go and ended up holding too long. The market peaked and crashed simultaneously. Lots piled on the market in 2006 and even still today, there are over 4,000 lots for sale in the Multiple Listing System.

Because the demand has cooled, we have had no choice but to lower the prices in an attempt to attract buyers back to our market. We are also looking forward to some of our largest local builders selling out their inventory of lots and homes this year. This will bring them back into the market of buying lots. Sales are finally picking back up and all the experts agree this will be the year the market should rebound. However, a large part of the market rebounding will be dependent on lot prices and builders home prices staying in a realistic range. Our market prices far exceeded our local income levels. We have found out the hard way, that doesn't last long. We may not be selling at those peak numbers anymore, but our prices are still substantialy higher than before the boom began. With high hopes of the market rebounding this year, this is a great time to list your property. Please feel free to call our office for the current suggested list price quote for your property. We will also explain the listing and selling procedures as well as go over all closing costs associated with the sale of your property. If there are any title issues you are concerned with, we can help you fix that as well. We are here to assist you.

CONTACT THE LOTLADY TODAY,
THE REALTOR YOU CAN TRUST.

NEWS

We are celebrating 20 years of service to the Palm Bay/Port Malabar community.

We have recently moved our location to the corner of Emerson Drive and Malabar Road.


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