Real Estate Trends Same Questions, Maybe Different Answers Berge Aslanian (CDPE) Realtor, RE/MAX Island Harbor www.RECapeCoral.com
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ell our season has ended but we are still attending to the transactions inspired by the 5-28-13 continued enthusiasm of visiting Real Estate Trends That seems to have kept buyers. Same Questions, Maybe Different Answers investors energized too. But the Well our season has ended but we are still attending to the transactions same questions keepinspired getting by the continued enthusiasm of visiting buyers. That seems to have kept asked, “Are prices going to go investors energized too. But the same questions keep getting asked, “Are prices going to go down? Should I wait for them to go down because these for prices are to down? Should I wait them high?” Really? gotoodown because these prices are too high?” Really? Thenumbers numbers forpast themonth past ought month ought to give some those clues to The for the to give us some clues us to answer questions. The questions. numbers for the month ending 5/28: answer those The numbers for the month ending 5/28: For Sale Sold
March ’13 Homes Median $ 1501 $239,750 311 $155,000
April ’13 May ‘13 Median $ Homes Median $ Homes 1347 $254,500 1197 $260,000 358 $165,000 373 $158,750
For Sale Sold
March ’13 Condos Median $ 307 $135,000 47 $106,000
April ’13 May ‘13 Median $ Condos Median $ Condos 293 $138,000 283 $138,000 61 $119,750 60 $105,000
On single family homes, listings of homes for sale are dropping On single family homes, listings of homes for sale are dropping while sales have while salesincreased. have noticeably That for means noticeably That meansincreased. inventory of homes sale isinventory not being of replenished as fast homes are being sold. The as result is prices are only down homes for sale isasnot being replenished fast as homes are being slightly. sold. The result is prices are only down slightly. Condos show the same units for sale decreasing and are Condos show the trend. same Numbers trend. ofNumbers ofare units for sale numbers of units sold are steady. Once again, prices are down slightly. decreasing and numbers of units sold are steady. Once again, prices are down slightly. With numbers of properties sold firm and steady in both categories and prices showing a slight decline an easy conclusion can and be made. Buyers are buying the With numbers of properties sold firm steady in both categories lowest priced properties while they still can. These are the ones that will show and showing aincrease slightasdecline an easy conclusion can be made. the prices highest percentage prices continue to rise. Buyers are buying the lowest priced properties while they still can. Smart buyers realize that these prices are still low in comparison to replacement These areinthe ones will show the increase cost and relation to that national averages. So, highest those folkspercentage who are waiting to see as if prices will go down prices continue to because rise. they got spoiled with our extremely low, distressed prices a year or two ago will be standing on the dock in despair as the ship sails without them on board.
As a highlight to what we are experiencing, most recently a couple from New York were visiting with the intention of buying near their retired father/father-inlaw here in Cape Coral. After looking at houses on the internet and then driving by several homes in their price range, they decided on one that met their criteria because they thought it was a steal compared to what they live in up north. And
Smart buyers realize that these prices are still low in comparison to replacement cost and in relation to national averages. So, those folks who are waiting to see if prices will go down because they got spoiled with our extremely low, distressed prices a year or two ago will be standing on the dock in despair as the ship sails without them on board. As a highlight to what we are experiencing, most recently a couple from New York were visiting with the intention of buying near their retired father/father-in-law here in Cape Coral. After looking at houses on the internet and then driving by several homes in their price range, they decided on one that met their criteria because they thought it was a steal compared to what they live in up north. And you know what? It is a steal compared to what they have up there. A nice four bedroom home with vaulted ceilings and a fenced yard for slightly over $100,000. Wow! They really don’t have to do anything to it other than move in. This astute couple recognized the value and an offer has been submitted. The sellers priced the property fairly and the buyers are happy with the price. We’ve all heard the saying, “If you snooze, you lose.” Well, that saying fits this market perfectly. For those that have to sell, pricing your property fairly will accomplish your mission because there is demand for reasonably priced properties. For those who are in the market to buy, there will not be a better time than now because prices are not going down in the foreseeable future. In fact, there are a number of buyers from 1-3 years ago reaping sweet returns on homes they are now selling. We’ve been seeing 10-35% profit and more depending on the property and when it was bought. All the signs are there. This market has continued to trend upward steadily. Those of us in the trenches see it every day. The numbers support that upward trend. So, when we get asked those questions about prices going down the answer is very simple to say but difficult for some people to understand, “No, prices are not going down”. And, “No, prices are not too high; they’re still well below the cost to build and still well below those national averages that drive our economy.” Maybe not what some want to hear but it is the simple truth. As mentioned here so many times before, please don’t miss out on these opportunities. They are here now. We probably won’t see these low prices ever again. Do your homework, work with a realtor and accomplish your goal!