According to Roy: Are things really beginning to look up?
"According to Roy" is a bi-weekly article that features local real estate broker Roy Barker explaining the ins and outs of the Cape Coral real estate market.
Are you currently in the market to buy or sell a home in SW Florida? If so, you should find this information very helpful!
Over the past six or seven years we have received a lot of conflicting information about the real estate market in this country. It is now believed that the start of the down turn was toward the end of 2005. There are many conflicting opinions as to when the recovery started. Real Estate is ‘local’, meaning that each market reacts differently to this type of event. Some areas of the country were hit much harder than others. Recovery is different in each market as well.
Now, I think we finally have some solid news about the market. Prices are rising and inventory is shrinking. Is this good news, or bad news? I guess it depends on which side of the fence you are on. If you are a seller, this is good news. If you are a buyer, not so much...
According to Realtor.com, listings of existing homes for sale were down 14 percent year-over-year in the first two weeks of January. The inventory is at about 4.4 months and a balanced buyer/seller supply is 6 months. This indicates that we are now in, or heading toward, a seller’s market. December of 2012 saw the biggest year over year gain in the last 6.5 years at 8.3%. We could certainly quote statistics, but the bottom line is, prices are going up and sellers are becoming less inclined to negotiate. Low inventories have resulted in multiple offers are being submitted on well priced properties. That creates a ‘bidding war’ on these properties, driving up the prices.
Inventories are expected to stay at this level through 2013, but there is still a chance they could increase. In order for inventories to increase banks will need to start releasing some of the foreclosure inventory they are holding and sellers will need to start listing their homes for sale. In the mean time, whether buying or selling, now is the time.
There are many aspects to finding a new home, including what needs to be done when you finally find it!
Next we are going to start examining some pre and post contract steps to help insure you are making the right purchase decision.