Coastal Resort Mrket - How did we get here?

[30ashopper]

Sorry, those stats were for watersound, not watercolor -

98 lots currently listed, about 30% under 300K, records show few lot sales, all of Watercolor is averaging about 6 to 8 new foreclosure filings per month, and spring selling season is officially over. "Now's a great time to buy real-estate in Watercolor!"

 

[melscuba]

Sorry, those stats were for watersound, not watercolor -

98 lots currently listed, about 30% under 300K, records show few lot sales, all of Watercolor is averaging about 6 to 8 new foreclosure filings per month, and spring selling season is officially over. "Now's a great time to buy real-estate in Watercolor!"

You and Shelley always make me laugh. Where are you getting the number of foreclosure filings per neighborhood? We're just being cautious as to timing because we don't want to see a loss in the land value to a sizable degree.

 

[30ashopper]

You and Shelley always make me laugh. Where are you getting the number of foreclosure filings per neighborhood? We're just being cautious as to timing because we don't want to see a loss in the land value to a sizable degree.

County records, you can search for "Lis Pen" filings over a period of time and specify the neighborhood through the legal details for areas that use a common name.

I'd guess you have plenty of time to pick out the perfect lot at the right price.

 

[Matt J]

What's at bottom, price, sales, or both?

As far as interest rates go, we'll be where we are at for another year or so. Bernanke won't be raising rates any time soon. Beyond that it's hard to say, but we'll know more as we progress forward.

Those were just the three scenario's I've heard.

As to your question I believe sales has hit it's bottom and we are moving back up. On price I don't believe we've seen the bottom just yet. I think we've officially seen the bottom on prices when a couple of investment funds sweep through South Walton like a swarm of locusts.

 

[Bobby J]

I also think that to get get exactly what you want you may pay a little more then what you want to. If this is a long term plan it should be OK. I think that would be better then buying a property you don't like as much at a discount and watching your dream property be built on by someone else that loved it and was willing to pay a little more.

 

[gmarc]

Bernanke has no say so in were mortgage rates go. There's a very good chance the world tire's of financing the feds endless spending that is bank rupting the country and rates will head much higher

 

[30ashopper]

I also think that to get get exactly what you want you may pay a little more then what you want to. If this is a long term plan it should be OK. I think that would be better then buying a property you don't like as much at a discount and watching your dream property be built on by someone else that loved it and was willing to pay a little more.

I think if you find the property of your dreams, and it's at price you can afford and feels reasonable, you should buy it. But buyers in this market should not feel as if their dream home is about to pass them by because somebody else is going to buy up the last good property next weekend. We need to remember, this is currently a buyer’s market. Sellers are at the mercy of those interested in purchasing because they are no longer the minority. This won’t change any time soon regardless of what community buyers are interested in. The only sellers out there with any kind of advantage are those that drop their price below comps - their advantage being they are at the top of the current sell list. The rest are left sitting around hoping someone falls in love with their property who offers close to what they owe before the bank takes it away. Buyers however have all the time in the world and should not feel compelled to jump until they are ready.

2009 is not 2005, or 2004, or 2003 or even 2002 or even 2001. Everyone involved should try and rinse the old mindset away and recognize that the fun filled, adrenaline inducing, halcyon days of the real-estate bubble are over. Anyone who tells you otherwise is, well, probably working on commission.

What we can expect over the next few years or so is the resumption of a normal, (non-artificial) free market where sellers compete on price and buyers haggle over the best deals. IMHO that's something we should all be thankful for. God forbid we somehow end up back where we started, which ultimately brought us to the precipice we're currently standing on.

 

[Kurt]

Believe it or not. There are people actually making a profit in real estate this year. Not me, but people.

 

[Smiling JOe]

In fact, rushing in today will likely result in an investment you'll take a loss on over the next year or two.

You have some key words in that sentence. "Rushing in" very well could get one into trouble, as we still have somewhere around 85-90% of over-priced listings. "Buying now" doesn't mean one is "rushing in." I've been working with some buyers for as long as two years. On a daily basis, I run searches for them. We've looked at many properties over that time. When they put in their offer, their purchase decision will be well-researched, and they will not be likely to "take a loss over the next year or two." They will wait until they find the right property for them, which makes good financial sense, too. They are not looking for a quick re-sell. If they were just "jumping in," and bought the first property they looked at, I think you are right that they would be upside down a year from now. Let's just remember that gains and losses are not realized until the property is sold.

In summary, none of my buyers are "rushing in." They are well-researched and have been watching the market for a long time. They recognize over-priced properties when they see them, and they are making comparative decisions, looking at all alternatives such as cost to build new, possibility of cash flow, etc.

 

[Bobby J]

I think if you find the property of your dreams, and it's at price you can afford and feels reasonable, you should buy it.

This would be my point.

Just because I work off a commission does not mean I work unethically. I sell property for a living. I will not hesitate to tell someone not to buy something. One deal does not make or break a good agent. We do transactions and at the end of the year, we add it all up. I would have to agree also with SJ. I have not seen anyone "rushing in" for a long time. BTW, the buyer seems to be very sophisticated and they were not buying in 2004, 2005.