Prices dropping in Watercolor
- Thread starter skier
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skier said:
Not sure a week determines a trend. Here's the latest release prices for the June 28th release.
One week does not make a trend, BUT this is the first time I have seen prices dropped (versus increased) since the inception of Watercolor.
Also, many of the properties on the current price sheet are priced higher than the prices on the latest release from Arvida. The St. Joe folks probably have a better sense of what will sell and at what price that all the average Joes that are pricing based on what the herd currently thinks property should be worth.
Also, many of the properties on the current price sheet are priced higher than the prices on the latest release from Arvida. The St. Joe folks probably have a better sense of what will sell and at what price that all the average Joes that are pricing based on what the herd currently thinks property should be worth.
RiverOtter
got any pics?
skier said:
I have been watching the MLS for some time now and have noticed several price reductions BUT (IMHO) those properties were not seriously for sale. The price was set so high as to start a new trend. I've done the same thing. Offer something up for sale that you don't really want to sell and if somebody will pay that price great!
Thank you RiverOtter. Well said. If we look at only the change of price, we should be concerned. If you take into account, the people selling and listing the property, their motivation, and their knowledge of market, things don't look so bad. If the sellers and agents were placing "realistic" prices on the properties, we would see great demand, and sales. As it stands, Buyers are taking a step back to evaluate rather than purchase. Just my two cents.RiverOtter said:
I disagree with you about the intent of the sellers dropping prices. Two recent decreases were by builders that can't afford to carry the property long term versus owners that are merely testing the waters. Bottom line--no one really knows at this point in time if the market is softening or not. But, it certainly looks like a bubble to me with huge amounts of inventory and only a small percent of people in the US that can afford $1.5 million plus for a second home. I would be willing to bet that there is now a 3 or more year supply on hand of lots and homes and maybe a bigger supply of condos.
RiverOtter
got any pics?
skier said:
Isn't this the same thing? The builder / developer may have $350/sq.ft. (I'm guessing here, I don't know the actual #'s) in a project (lot and house) and has listed the property for $550/sq.ft. Buyers aren't willing to pay $1,100,000 for a 2,000 sq.ft. house that is 1+miles to the beach so the builder/developer drops his price to $525/sq.ft.
Also do not forget the "short fuse" on some Watercolor property, like a stock option, the shorter time until expiration the less the option is worth. The last time I was getting a free cookie in the St Joe office a builder was discussing with the saleperson how much he should "low ball" the seller since there was only a few months to go before building had to start, they decided to offer $100m less that the $700m list- don't know the outcome. Like a golf shot, each one makes someone happy.
I was talking to someone here in Georgia tonight, and he said that he is putting his One Seagrove Place condo on the market just for the heck of it because he thinks the bubble is about to burst. A lot of people I know feel that way, whether it's true or not. I know some people who paid too much for a lot thinking that prices could only go up, yet construction costs are so high that they feel that if they built, they could never get their money back. So they're thinking about selling the lot. I think they might make a small profit on it, but it's minuscule compared to the profit made by the previous two owners.
RiverOtter
got any pics?
Had some friends stay at Watercolor and were not happy. Said it was horrible crowded and the beach area is so small that if you didn't get there early enough no place to sit. 