January 29th, 2010 09:44am
admin
The new season has finally kicked off as we are seeing more buyers entering the market. While the start of the season started off a little more gradually than anticipated, there has been a significant increase in sales over last year.
Generally speaking, despite economic conditions that still impact the country as well as our area, a recent CNN article indicated that the general population seems to be more conditioned to our current economic climate. Becky Bovell who is the head of Tourism for Charlotte County, also confirmed the slower start to the season, but did indicate there has been a gradual uptick with the peak season between President’s Day and Easter.
The summer season which has historically been the slowest time of the year for real estate sales, saw more activity which led to a cautious optimism by most Realtors, and it seems to be paying off.
Deep Creek, which is a development just north of the Peace River and located east of I-75 has had 50 homes go into contract and 15 close within the last 30 days. Selling prices have been between $70,000-290,000.00, which shows a diversity within this deed restricted community. While average sale prices have declined from the high in June of 2007 of just over $275,000 to a current average of just over $125,000, sales have been robust.
The boating communities of Punta Gorda Isles and the sister community of Burnt Store Isles have also seen an increase with 39 homes going under contract and 10 closing with an average selling price of $225,000.
With buyers being more deliberate in their research for the best possible buying opportunities, this is encouraging news that the worst economic news may be behind us and that opportunities abound for those looking for a better quality of life, and an escape from the volatility of the stock market.
January 11th, 2010 10:47am
admin
What a difference a year can make as last year at this time we were entrenched with the possibility our economy was crashing, banks were getting TARP monies and major automakers such as GM were on the verge of bankruptcy.
While there are still dark clouds on the horizon, there is a cautious optimism in the air as we are starting to see signs of stabilization and a stronger consumer confidence.
Some feel there are many foreclosures still ready to hit the market and others feel a major correction is forthcoming in the stock market due to the “false” levels created by the infusion of government bailout money.
However, optimists point out the economies of countries such as China, Germany and India are flourishing and that the world economy is in fact improving; encouraging news for the possibility of potential European real estate investors.
Generally speaking, we are seeing a return of buyers to the market earlier this year which bodes well when compared to home sales for 2009. But don’t let the uptick in buyers entering the market lead you to think sales will be brisk. Today’s buyer is much more deliberate in their search and only makes a commitment when they are assured they have found a “great deal” however, armed with a more positive forecast for 2010 and continuing development of the Punta Gorda/Port Charlotte area, they realize there may never be a better time to buy.
Aside from the possibility the economy may in fact be stabilizing, on September 9, 2009 Port Charlotte, Florida was recognized as the number one place to retire to in the nation by CNNMoney.com, and the Punta Gorda area alone has seen a tremendous revitalization since Hurricane Charley that was highlighted by the five year anniversary celebration Xtreme Makeover, (noting all the commercial developments and improvements that have transformed this waterfront city during five short years).
While Charlotte County stills ranks as one of the oldest per capita counties in the nation, new developments definitely have a younger generation in mind. Wine Cafes and Bistros such as Bin 82 have replaced the old Acme Bicycle Shop. Rooftop bars with lounge and pool areas are found at the 63 room boutique hotel called the Wyvern. The Laishley Crabhouse is the most recent addition to the 83 slip Laishley Marina and Park facilities, where an interactive water fountain and band shell highlight the park designed for family fun and entertainment. River walks to Gilchrist Park and Fisherman’s Village are in the finishing stages and The Sunloft Center features curbside dining at Jack’s and retail, office and condominiums with panoramic city vistas from above. For those looking for the fare of an authentic British Pub, it gets no better than the Ice House and a quick game of darts.
Changes are ongoing with new services such as trolleys and riverboat eco tours providing an opportunity to enjoy the historic district’s charming waterfront amenities.
Enjoy the third Thursday of every month called “Gallery Walk” where store owners stay open with sidewalk entertainment.. And don’t forget about the Farmer’s Market each Saturday morning.
Look for our upcoming articles where we highlight the accomplishments of the Charlotte County School System that has attained one of the highest rankings in the state for student performance as well as the upcoming development of Babcock Ranch and its partnership with FP&L to create a solar city of the future.
Looking for a unique place to call home, you may want to consider Punta Gorda, Port Charlotte and the surrounding area, you won’t be disappointed.
August 18th, 2009 05:20pm
admin
Until Hurricane Charley hit the City of Punta Gorda head on five years ago this year, most people in the United States never heard of this unique Florida City with a Spanish name. Even those within the state didn’t recognize this town which in English means “Fat Point.” However, what makes this Southwest Florida’s city a “must buy,” is its affordability as a pristine waterfront community. Situated on Charlotte Harbor within close proximity to the Gulf of Mexico and world class Tarpon fishing, Punta Gorda has rebounded in the last five years as an even more popular tourist destination and diversified residential community.
When compared to Sarasota and Naples, Punta Gorda’s boating communities of Punta Gorda Isles and Burnt Store Isles offer a waterfront lifestyle second to none and at a price that can’t be beat. In the last six months, 108 homes have sold and another 40 are under contract, a statistic that speaks volumes in a real estate market that has not seen very positive news in the past few years. While not known for its beaches, the protective Charlotte Harbor has been voted as one of the top ten harbors for sailing, and ESPN has covered the O’ Boy Oberto Annual Redfish Tournament over the past few years attracting anglers from all over the country.. When it comes to gulf access canal front homes, the sister communities of Punta Gorda Isles and Burnt Store Isles, also known as PGI and BSI, offer a unique blend of pristine waterfront living with close proximity to the historic charm of downtown Punta Gorda.Waterfront homes in these boating communities range from the mid $200,000’s to over $3,000,000 for powerboat and sailboat access to the harbor and the gulf islands beyond. Comparable properties in Sarasota and Naples (Sarasota and Collier counties) can cost one third to one half more, without many of the amenities.So if a pristine boating community with a charming nightlife, nestled within close proximity to a historic downtown is what you are looking for at an affordable price, you may want to consider the waterfront developments of Punta Gorda Isles and Burnt Store Isles for your next investment or place to call home.If you would like more information about our area or a list of available homes, please call The Gary Cardillo Group (RE/MAX Harbor Realty) at (888) 818-4945 or write to us at info@waterfrontliving.com
August 10th, 2009 11:49am
admin
Its hard to believe that five short years ago, the Red Cross and National Guard as well as many other relief organizations were sending trucks full of supplies for our hurricane ravaged town. Former President Bush and his brother former Florida Governor Jeb Bush, toured our area as did other noted politicians during an election year that brought a quick response to a Southwest Florida waterfront county (Charlotte) shocked by the unexpected impact of a Category 4 Hurricane.
August 4, 2004 may always be remembered as the day when Hurricane Charley devastated Charlotte County, but it also marked the beginning of a rebirth that has turned Port Charlotte, and Punta Gorda from a conservative retirement community, to a younger more vibrant destination.
In five short years, Port Charlotte has seen a residential and commercial rebirth adding such well know national franchises and retail establishments as Panera Bread, Kohls Department Stores, and Carabba’s Italian Grill. However, the quaint historic waterfront City of Punta Gorda has taken on a whole new life with the emergence of new hotels, marinas, and a diversity of eating established few could ever have imagined.
As a Realtor, I am often guarded in my exuberance at the change that has gone on since that August summer day, as many people lost homes and businesses. But in their loss, a systematic and well planned effort to take the “blank slate” Charley left in its wake and turn a City with immense potential into a reality has come to fruition.
Starting with a grassroots organization of residents and business owners alike, TEAM Punta Gorda was formed to help redesign a city poised to take advantage of its harbor front location. Within a short period of time, TEAM Punta Gorda hired reknown Master Planner, Jaime Correa to create a “Master Plan” for the rebuilding of the City of Punta Gorda, and the effort is paying off.
Today, roof top dining, boutique hotels, nationally recognized marinas, and a host of dining options never seen before, dot our City’s landscape. The historic Ice house is now home to an authentic English Pub. A former retail location is now The Downtown Hookah Lounge, featuring middle eastern cuisine and belly dancing. Bin 82 is a wine and cheese café serving a variety of Tapas. The boutique Wyvern hotel is a Ritz Carlton equivalent, with its roof top pool, bar and seating area, looking out over the city skyline, north to Charlotte Harbor and Port Charlotte beyond. The Sheraton Four Points hotel has just opened with new condominiums and waterfront shops lining the Harborwalk planned for future development. The new Charlotte County Events Center, a twenty million dollar project, gives us a state of the art facility to house venues never seen here before. The Sunloft Center is a unique building that though an amazing architectural plan gives the illusion of multiple buildings. On the ground floor is Jack’s, a new neighborhood restaurant with outside bar area along Marion Avenue. The upper floor will be office space and the top floors will be condominiums with views of the city skyline, capturing beautiful sunset views. Laishley Park and Marina and the new Laishley Crab House are the newest attractions to the area. This state of the art marina facility and public boat ramp offers over 80 new slips for long term and short term dockage. The park itself features an outdoor band stage for year round concerts, and the new interactive fountain has been a hit for families and friends to enjoy on hot summer days.
Overlooking the marina is a 23,000 sq ft Key West Style facility that houses the Laishley Crab House Restaurant. Just opening, this exciting new dining experience features both an inside and outside bar area overlooking Charlotte Harbor and the adjoining Peace River to the north. Inside you are treated to a dining experience masterfully decorated with some of the most unique wood carvings imaginable.
Charlotte High School is soon to be completed joining the Punta Gorda Middle School as two educational facilities that were completely rebuilt far beyond their original design. The high school will boast of a new technical building for those with engineering and computer interests, and the athletic facilities and track are seen only on collegiate campuses. .
While there is still much more growth that needs to take place in attracting new business such as technical, manufacturing, solar, aeronautical, medical and telemedicine, in five short years, Charlotte County’s Port Charlotte, and the City of Punta Gorda, have made great strides in becoming vibrant social and residential communities while maintaining their appeal as vacation destinations.
This weekend, August 15th, the City of Punta Gorda is hosting a City wide event called “Xtreme Makeover”, that will celebrate the accomplishments that have been made in five short years. For some, the change couldn’t have come soon enough, for others, it is a reality beyond their wildest imagination. With expanded interest in the arts and cultural interests, as well as a diversity of job growth, Charlotte County stands poised to unseat Sarasota and Naples as the most unique waterfront destination; it certainly is the most affordable.
August 9th, 2009 06:47pm
admin
One of the hottest segments in the real estate market today is Bank Owned Properties and for the buyer who can view the property and respond quickly with an offer stands the best chance to benefit from the opportunistic buys in the market.
While these homes are purchased in “As Is” condition with a “right to inspect,” the buyer must accompany their offer with either a letter from their bank representative stating they have sufficient funds to purchase the property for cash, or a loan commitment letter showing the buyer has already been approved for a loan. It is important to note that a “loan commitment” is different from a “pre-approval” in the sense that the commitment is predicated on more detailed information.
Since banks what to get these “distressed” properties off their books quickly, they want to make sure the potential buyer is financially sound as they do not want to “wait” for extended periods of time for the buyer to apply and get approved for a loan.
It is also vitally important to have an experienced Realtor work with you as there can be “hidden” expenses that could result in thousands of additional costs to you. Past assessments, outstanding permits, liens, taxes or association fees are just some of the potential costs that you, as the buyer, could be liable for that are not always “obvious” and may require researching to uncover. These potential fees could be significant enough to change a good investment opportunity into a liability.
Keep in mind that purchase agreements or “addendums” submitted by the banks are very “one sided” and are structured solely to protect their interest. While bank owned properties provide excellent investment opportunities, don’t overlook the details, and pay close attention to the all the required documents along with having your finances to purchase the property secured in advance. The more organized you are, the quicker you can respond to these opportunities, giving you an advantage over others who must accumulate the information required to submit along with their purchase offer.
August 6th, 2009 11:45am
admin
Literally every day I have someone ask me if a short sale is right for them and my question usually starts with, “It depends.”
Too often people think this is the quickest way to avoid foreclosure however, since there may be tax consequences on the “phantom income” as well as the potential liability for repayment of the outstanding loan balance, consulting an attorney and accountant in advance of any conversation with your lender is highly recommended.
As different as your financial situation may be, so are the processes the banks who hold these mortgages use in addressing these outstanding loans. Some lenders are willing to forgive the outstanding debt while others such as Bank of America will wait until the property closes as a short sale, then discuss the repayment for all or part of the outstanding loan.
If you have valuable assets, it is important to note the banks may see these assets as vehicles to be used in satisfying the outstanding balance on the mortgage. It is for this reason seeking both legal and accounting advice is imperative before entering into negotiations with your lender regarding the possibility of selling your home through a short sale.
Another point to consider pertains to any “second” mortgage or “equity loan” taken against the property. I have heard of several instances where information given on these loan applications was “less than accurate.” Many times job history and salary structure was intentionally “falsified” to obtain the loan, and that “false” information could come back to bite you in your short sale request.
Since you can’t just sell your home “short” of what is owed on the mortgage, a financial hardship letter must be submitted along with two years worth of pay stubs or tax returns. If there is an inconsistency between your tax returns and the information you provided at the time you were applying for an equity loan, you could put yourself in a position where you would have committed fraud, and this is a criminal offense. At that point it would be better for you to go to foreclosure than it would be to put yourself in a legally compromising position by requesting a short sale in order to sell your home.
While short sales are not as damaging to your credit rating as a foreclosure or bankruptcy, seeking professional advice in advance is highly recommended prior to entering short sale negotiations with your lender. Once given the “O.K.” to proceed by council, seeking a Realtor with vast experience selling short sales and bank owned properties is equally important as there are many nuances to consider during this process that can take many months to bring to a closing. Knowing your options in advance will help you make sound decisions in limiting your financial risk.
June 28th, 2007 08:00am
admin
If you are like many wondering just what is selling, the following is a breakdown of homes sales, year to date, by price category. This is for the period from January 1st through May 31, 2007, and represents residential sales for the entire county.
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Homes priced from:
$300,000 and under               1200 sold                   80% of total                         Â
$301-500,000Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 206Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 14%
$501-700,000Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 62Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 4%
$701-900,000Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 10Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 1%
$901,000 and above                 14                            1%
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A total of 1,492 homes were sold in the entire county in the past 5 months. The median price (the number most quoted in statistics) was $195,000. The average price of a home was $232,000. For many, these two figures are confusing so simply stated, the difference between the median and the average price is, the median price is the point where half the sales are below, and half the sales are above that price. The average price of course is derived by dividing the total number of sales into the total sales dollars.
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Susan Herrera of CNN, recently interviewed Dr. Edward Learner of UCLA’s School of Management, where he commented on the current state of the real estate market and how he feels the return to “normalcy†is going to take a couple of years. He further stated, “Sellers need to clear inventory and cut price.â€Â Perhaps the weight of his words for aggressive pricing was more succinctly put when we went on to say, “Buyers should view a house like a bus; if you miss one, a better one will come along in an hour or two.â€
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Susan Wachter, Professor of Real Estate and Finance at the University of Pennsylvania’s Wharton School of Business was also interviewed and commented that the real estate market was still in decline. She feels the market will bottom closer to the end of the year however, she did stress that prices need to continue to go down as they are still too high.
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Other analysts have drawn the correlation, “as interest rates go higher, historically home prices are lowered.â€
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As a seller, this information should confirm what we keep saying, by aggressively pricing your house now you may save yourself thousands in the long run, as you won’t be chasing a “declining†market. We have seen that today’s buyer is no longer responding to “fair market prices†or “competitive market prices,†they want a deal. They feel the market is still adjusting and the only way they are getting off the fence is if they feel by negotiating well enough today, they would still be in good shape tomorrow if the market continues to decline as expected.
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You have to ask yourself, “Am I competitively priced or am I the DEAL?â€Â The result of your property selling may be more in line with how you answered the question!Â
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Few can contest that our area is everything Money Magazine and Forbes suggested in voting us as “One of the top places to live in the country.â€Â The adjustment in real estate prices was expected, and needed, to return ourselves to a healthy balance. The faster we achieve this balance, the quicker we are going to realize the potential the media and developers alike have predicted for our area for years to come.
June 18th, 2007 10:23am
admin
If someone came up to you and said, “I just purchased a house for $200,000 below what it was originally listed for,†your most likely response would be, “What a steal, someone must have been in big trouble to sell at that price.â€Â My question to you is, “Did that home sell conventionally, or did it sell at an auction?â€
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The problem most people have with an auction is the perceived stigma they feel is attached to it. For many, the word auction conjures up a distressed sale by someone who is in serious financial trouble. Visions of strangers coming through your home like vultures circling over their prey, is more than most people can bear.
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In the past couple of years we have experienced a roller coaster ride in the real estate market that most people have never seen before, and may never see again. Shortly after Hurricane Charley, many of those who purchased homes prior to 2004 saw the value of their properties soar. Returns of 200% or greater were not out of the ordinary however, now that the market is going through its anticipated adjustment period, those profit margins are returning to more realistic numbers. Investors who were giddy with the increases in the stock market in the late 1990’s through early 2000’s were joined by those real estate “investors†who enjoyed the meteoric rises prior to 2005; and how quickly we all went from being surprised by the “return on investment†to expecting that kind of return on investment; and for many it was the unwillingness to concede a significant part of those returns that kept home prices high that resulted in sluggish sales. Recently, Michael Saunders, founder of the Michael Saunders Real Estate Firm, was quoted regarding Sarasota and Bradenton’s 14% increase in home sales stating, “Early on, the Realtors in our area made a collective effort to get prices in line (realistic) that has attributed to our area’s growth.â€Â Although I believe, demographics played a larger role in their areas recent resurgence; it is the reference to the reduction of prices that is credited with their turnaround. So what does this have to do with auctions?
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With over 6300 homes on the market at the present time, there is more competition than ever for developers, investors and individual homeowners alike, to make the price of their homes as attractive as possible. Incentives from developers in the form of cash discounts and credits towards upgrades are being offered to the buyer. Higher commission rates, Hawaiian vacations and even Rolex watches are being offered to Realtors for bringing customers to them as they desperately seek to reduce their over inventoried positions. Even some homeowners are offering higher commissions to the selling agent just to feel they are getting their homes shown more often however, with all of this being said, the bottom line is price.Â
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Today’s buyer still feels the market is adjusting, and with all the negatives in the press that continue to erode away at the their confidence level in the market, those willing to jump in are taking their time in making a decision and only doing so at a great price. The only way to get today’s buyer off the fence and quickly, is by making the price too good to pass up. Does that mean a “fire sale,†absolutely not! But today’s buyer is looking for the assurance that even if the market does continue to adjust downward a bit more, they still negotiated a good enough deal now, where waiting an extra few months would not have put them in a position of getting a better deal then. That brings us to “Auctions.â€
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An auction is nothing more than another tool that can be used to sell your home…..quickly. There are many types of auctions from the Dutch Auction, that is similar to a conventional way of selling a home where the price starts high and works its way down, to the auction most people are familiar with where the auctioneer is trying to get the potential buyers to bid higher. Recent statistics show that auctions will account for 30% of all real estate sales in the next few years and are currently the fastest growing segment in the real estate industry.  “Absolute†auctions are those where any offer is accepted regardless of price, whereas those with a “Reserve†are characterized by an established minimal bid or price that must be offered, or the property does not sell. For those not willing to trust human nature to bid the price up, an auction with a reserve may be best for them. But keep in mind, no one wants to see the other guy get the deal, and thus the price gets bid higher. Statistics have shown that auctions also get a price very close to fair market value which is defined as,†The price at which a ready, willing and informed seller would sell his property and a ready, willing, and informed buyer would buy, neither party being under any pressure to act.â€Â
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Instead of looking at an auction from the stereotypical point of view as a “distressed sale,†try looking at it as a guaranteed sale, in a guaranteed time frame.  Unless you purchased a home in the last year or two, auctions may be a very viable avenue for you to pursue if you are looking to sell your home quickly. Banks are starting to look at auctions more favorably as well as “Short Sales,†as it helps them avoid the costly legal fees of foreclosures for those that are facing severe financial difficulties. The benefit for you as a seller is the commissions are paid out of a “Buyer’s Premium†or participation fee. That fee which can run from 10-15% of the purchase price, pays for any commissions due from the sale. As a seller, you will have a set marketing fee usually for the month that can range from $2,500-$10,000, depending on the company. While this may sound high at first, the marketing associated with the auction is very extensive that often- times includes national data bases.
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Auctions are just one of the tools some of us use to sell homes for our clients; it by no means is being used to replace the existing way we sell homes today. Depending on when you purchased your home and the price you paid in comparison to what the market will bear, will determine whether or not an auction is right for you.
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As for the home I mentioned in the beginning of this article that sold for $200,000 below its original list price, if you thought it sold through an auction, you were wrong; but I bet most of you thought this was a desperate seller who had to give his house away through an auction. In reality, this seller would not price his house aggressively enough, and as a result took over 200 days to sell his home for $200,000 less than his original asking price. Had he considered an auction, he would have sold it in a fraction of the time and probably for a much better price, with a lot less frustration; and don’t forget about those monthly carrying costs!
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You don’t have to be a desperate seller, just a highly motivated one, to realize the potential benefits of turning your money more quickly through an auction.   For more information on Auctions and other real estate questions, please feel free to contact us at 888-818-4945.
June 13th, 2007 12:38pm
admin
As a former psychology major, I have always been intrigued by the emotional diversity of the human mind. At times it seems to have a spirit or will, that serves as a great source of strength in helping us overcome adversity and fear. Other times it can appear weak and fragile leaving us confused and doubting our abilities to face life’s challenges.
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Having transitioned from one career into another, I have had an opportunity to work with people who have overcome great odds to reach the pinnacle of success however, I have also witnessed some of these very talented people second guess their abilities when their respective market changed, even when the change was expected.
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The same has happened with our market as many homeowners, investors and realtors alike find themselves questioning the degree and length of time this market will continue to adjust. Once confident, many of these “investors†who were either “banking†on the equity in their homes, or who overleveraged themselves with investment properties, not expecting the market to change so rapidly, are now growing more concerned about the prospects of  recovery in this market. For many, their confidence may be shaken, but for those who take more of an analytical approach instead of one based on emotion, the market is actually performing as expected.
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As one of ten writers of this column I am often asked to comment about various real estate related news articles and opinions that come across our TV screens or other forms of media and surprisingly, many of those asking the questions are the same ones who were very bullish in this market. Even more interestingly is how their behavior pattern is very similar to the “day traders†of the late 90’s and early 2000’s when making money in the stock market seemed as easy as “shooting fish in a barrel.â€Â When their market turned, many of these investors who thought they cracked the code to riches, found themselves looking for answers to the sudden change in their market; sound familiar? To help you through this time, let me share with you some of the questions I have been receiving and my personal responses, but first let me explain to you the four cycles of the real estate market that I feel were clearly outlined by Maryann Mize of Charlotte State Bank in some of her presentations.
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If you started in the quadrant of “Under Supply†you are essentially starting with the cycle that is ripe for growth and is poised for the beginning stages of development. Just as it says, there is an under supply of inventory in a variety of sectors of the real estate market. Following the quadrant of Under Supply is that of “Expansion†that is characterized by declining vacancy rates and new construction and growth.  These two quadrants represent “Increasing Demand.â€Â The third sector or quadrant is that of “Over Supply,†with increasing vacancy rates and inventory levels and the fourth is what is considered “Recession†that is characterized by further increasing vacancies and more completions in new construction. These last two quadrants are those of “decreasing demand†and it is between these last two quadrants that we find ourselves today.
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The questions I receive most have to do with the type of buyers in the market. Some have heard the Europeans are coming here, while others claim they hear the investors are back in the market. Traditionally, the Central and South Americans have favored Miami for its Latin influence and nightlife, while the Irish and Brits prefer to invest in the Orlando area for the theme parks and the potential for year round rentals. What we are seeing primarily in our market is a diversity of “End Users†who are looking to purchase a home for personal use. Where we could pick up additional opportunities from the international market are from some European countries as well as Venezuela that are starting to see the signs of Socialism and are considering Florida as a safe haven for their real estate holdings. As for the investors, I beg to differ from the opinions of some, as I believe most are on the sidelines waiting for the opportunities on the horizon where there is a growing consensus that the fallout from the “sub prime†market is going to be felt, causing higher delinquency rates and foreclosures. Many feel this time will come in late summer and I am hearing that even the Wall Street investors who are looking at real estate are positioning themselves to take advantage of the great opportunities that will be at hand; and that brings us to the “mindset†of today’s investor.
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Today’s investor is thinking very differently than those that were in the market two years ago. Much like the behavior of the “Day Trader,†those claiming to be “Real Estate Investors†a couple of years ago, where jumping in with high hopes the market would continue its meteoric rise due to low interest rates, affordability and the influx of baby boomers projected for years to come. The investor of today is banking on the vulnerability of market and is looking at opportunities “for a steal.â€Â As a seller, this investor is not who you should be looking for; it is the “end user†who is more reasonable in their pursuit of a good deal.
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Another question I am asked relates to the increasing inventory levels and the lack of sales in the market. For the eight years I have lived in Florida, January 10-15, regardless of the industry, has always been the beginning of our busiest season. With people looking for any glimmer of hope, we started to see signs of life with an “Up Tick†in sales at the end of the fourth quarter of 2006 and the beginning of 2007. Now the market seems to have hit a little bit of a trough again as the economic news has been volatile. Personally, I feel the increase in inventory levels is due to the optimism and anticipation of a busy season, and with the general public very uneasy about the economy and the inconsistencies over the past few weeks in the stock market, many people are putting their properties on the market hoping to capture any momentum there is. As a result, instead of inventory levels going down, they have increased and home prices are continuing to adjust.
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Recently I was watching T. Harv Eker who wrote the best seller, “Secrets of the Millionaire Mind,†in which he said, “It is how you train your mind to think that will insure your success.â€Â Are you of the mindset to protect what you have or is it to “Win†by taking chances and creating opportunities for success? Previously, I referenced Robert Kiyosaki, author of “Rich Dad, Poor Dad,†who said years ago, “When everyone starts to get into the market, that is the time to get out, and when everyone is trying to get out of the market, that is the time to get in.â€Â It is a contrary way of thinking, but now that you understand our market, you can either choose to let the market dictate circumstances for you or you can look at all the opportunities within the market and program your mind to take advantage of those that will benefit you the most, regardless of whether you are a buyer (end user), seller or investor. What’s the secret? Think more analytically and less emotionally and then consider if this is a market in despair or one full of opportunity?Â
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The rich make money in good times, but they make even more money in the challenging times, according to Kiyosaki. The question you need to ask yourself is how you are going to train your mind to take full advantage of the opportunities this market will bring.
January 26th, 2007 11:55am
admin
 A January 26, 2007 article in the Herald-Tribune may be an indicator of good things to come with regard to the real estate market, particularly in our area. With homes sales still sluggish for most of the nation including the metro areas in Florida, this news shines a very favorable light on our area as “Sales in Charlotte County-North Port handily beat December 2005, rising 19 percent.â€
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In what traditionally is a slow time of the year for home sales due to the holidays, this news is of particular interest considering the drop of 17 percent for the national market. Personally, I have found January 10-15th as the beginning of the new season here in Florida, regardless of the industry. With home sales picking up earlier than anticipated and a headline on MSNBC stating, “Is the housing market bottoming out,†we may be starting to see a beginning of the long awaited stabilization in our real estate market.
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In an interview on MSNBC today (January 26, 2007) David Lereah, NAR’s (National Association of Realtors) chief economist stated that we have seen the worst drop since 1989 however, three quarters of the country is starting to show signs of expansion.  He did echo caution for the large metropolitan (metro) areas in California, Florida, Las Vegas, Pheonix and Washington D.C., but continued to say, “With fingers and toes crossed, it appears that we have hit bottom.â€
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The major reason for the up tick in home sales are huge incentives and lower prices that have been offered by builders and home sellers alike. This certainly follows the advice we have been giving for a long time. Buyers are primarily responding to “attractively†priced homes before they submit a bid, and not making offers on homes they feel are still not competitive in pricing.Â
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Sue Louis, a regional senior vice president for Coldwell Banker Residential Real Estate Inc., agreed with David Lereah’s outlook of the market and added (for buyers), “Be prepared to pay a price that may not be as low as you’d hoped, but that just might be your last opportunity because we are beginning to see multiple offers on appropriately priced homes.â€Â
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Although we may not be seeing this scenario in our area just yet, my suggestion would be as a seller, to take full advantage of the busiest season of the year and make the price of your home as attractive as possible. While the indicators showed an upswing in sales, it should be noted that home prices were down 3 percent. We still have very high inventory levels of homes, condos and vacant land that will keep prices down, but reducing your price will enable you to move your property faster during this competitive market. Once these levels are lowered we will start to recover from this adjustment period at a faster pace than many other areas, and the result will be higher property prices and more stable growth.  Â
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