monty said:
Not sure if you bought during the height of the craze, but I would bet that people that bought a home at the height of the craze probably don't feel quite as cozy about their investment/home as you do. Prices have fallen a lot since the peak and many people are under water on paper.
You guys really keep us working with some of the remarks about the doom of the market up here
but it helps me keep up with what's going on so here goes:
I ran sold sales of gulf front condos less than 1 year old between corresponding dates for 2005 and 2006 in Tampa Bay (Sarasota to Hudson), South Florida (Jupiter to Ft Lauderdale) and Panama City Beach. There are 3 different systems that produce data differently so the Cma's look different but all produce the ave sq ft price for the subject searches. You'll see that:
Tampa Bay had an increase in value and in the number of sales this year.
South Florida had a decrease in both value and the number of sales this year but have to say that with only 2 sales this year, the tremendous drop in value is highly suspect. It
could be indicative of a decrease in high-end buyers down there over last year and/or the production of more affordable housing. Or it could just be not enough data because of the 2 month time frame. It's really late and if anybody cares I'd be happy to look into it more closely.
I restricted Emerald Coast Search to Panama City Beach as a result of some comments about the flooding of condos over there but you will see that this year so far, we've had a flattening of prices from 1st quarter 2005 (which was before the drop so prices were at peak) but they have not fallen
a lot as Monty stated. Also the number of sales have nearly tripled since Jan 2005 which is the first significant increase I've seen since 1st quarter last year. Number of sales have been up and down every other year since 2002 and if that trend were to continue, they would rise again this year since last year was down but as we all know, in the short term anything can happen and as everyone knows there is a lot of inventory on the market.
Tampa Bay - 01/01/05 - 02/26/06 - Ave sq ft Price = $478.26 (3 sales)
Tampa Bay - 01/01/06 - 02/26/06 - Ave sq ft Price = $507.04 (8 sales)
SE Florida - 01/01/05 - 02/26/06 - Ave sq ft Price = $717.69 (4 sales)
SE Florida - 01/01/06 - 02/26/06 - Ave sq ft Price = $396.47 (2 sales)
Panama City Bch - 01/01/05 - 02/26/06 - Ave sq ft Price =$452.85 (3 sales)
Panama City Bch - 01/01/06 - 02/26/06 - Ave sq ft Price = $450.03 (8 sales)
To those making predictions based on heresay or isolated cases, I can only say that everybody has an opinion, some people may have rushed to judgement and "dumped" their property too quickly . Some people may have acted foolishly and gotten in over their heads as Paula mentioned. The information that we have a lot of inventory right now is correct, as is the fact that some investors are running but they really have no one to blame but themselves for getting greedy and overextending themselves to make that quick buck. I see no current foundation for this whole hullabaloo about the crashing real estate market. And for those making predictions based on mortgage rates, they probably will go up but as of yesterday, I believe interest rates were right about the same as 4/2004 which was right in the middle of the "craze".
If you are or want to be active in this real estate market, work with somebody that can give you numbers not premonitions and if you're not active in the market, why do you care?
Paula's a wise investor and has the spirit to enjoy and appreciate this beautiful place that's been put here for us, as do many of the people on this board.