Homes going up or Down in Price? (Tampa, Cape Coral: shop, to move)

[rikoshaprl]

Most folks that are retirement age have plenty of equity in their homes so if prices are weak they can still sell. With prices so low in SW Florida they can buy a retirement home with cash from their first home and put some money in the bank.

[nhkev]

what a broken record. "such and such is going to happen and that aint gonna be good for home prices" every week it's a different reason for doom and gloom.

Real estate 101 - supply and demand.

Every time you have one of your "reasons" of why things are going to fail ask yourself this. If my opinion is correct what would I see? For example. If you think that people up north won't be able to sell their homes resulting in not being able to buy then you would see low sales in SWFL and inventories rising. We've had 4 yrs to study this. there has been 70,000 sales of homes and condos in this time period and inventories have dropped by over 60% in the last 4 yrs. So obviously you are wrong again. It's great to have ideas and opinions but when they have proven wrong it is stupid to hold on to them. You constantly ignore the demand side. unemployment was rising from 6% up to 14% in SWFL inventories still went down. foreclosures were out of control in 2008 and 2009 , inventories still went down. Because demand was greater then the supply that was coming on the market. This morning there were 1738 single family homes for sale in Cape Coral that were active listings. You keep on saying negative things but yet the inventories keep dropping. There are many things that can effect supply but as long as inventories are low and dropping then prices will increase it is that simple, you don't need any national article or opinion. It is also the reason that my predictions come true 90% of the time,and you are wrong 99% of the time. because I keep it simple and base them off local facts and first hand reasearch not national articles that don't pertain to SWFL

[CCRESI]

Inventory is shrinking...in most locations.

I live this daily and know that in some locations, once a new listing comes on mls, agents are swarming like bees all around it. I am one of those bees. Then the home sells in the matter of a few days, after having multiple offers.
Some listing agents are underestimating this market or have no clue as to what their new listing will go for, pricing it too low for our market. Then it ends up in a bidding war. It is hard to try and explain to your buyer that the home will sell for over list price, without sounding like a used car salesperson.

I do know that in most locations of the Cape, in certain price ranges, the listings are eaten up as soon as they hit. Today for an expample....home listed for for one day, pending. multiple offers. seller is not taking anymore offers. c'mon, it has been one day!

If you are in this market to buy a home, have patience and make offers that are reasonable. Nothing worse than having to put in offers that make no sense at all, b/c the buyer thinks "everything happens for a reason", on homes that are listed low to begin with. Listen to the facts. What has sold? For how much? Most of all, good luck. You'll need it. .

[nhkev]

Originally Posted by CCRESI

Inventory is shrinking...in most locations.

I live this daily and know that in some locations, once a new listing comes on mls, agents are swarming like bees all around it. I am one of those bees. Then the home sells in the matter of a few days, after having multiple offers.
Some listing agents are underestimating this market or have no clue as to what their new listing will go for, pricing it too low for our market. Then it ends up in a bidding war. It is hard to try and explain to your buyer that the home will sell for over list price, without sounding like a used car salesperson.

I do know that in most locations of the Cape, in certain price ranges, the listings are eaten up as soon as they hit. Today for an expample....home listed for for one day, pending. multiple offers. seller is not taking anymore offers. c'mon, it has been one day!

If you are in this market to buy a home, have patience and make offers that are reasonable. Nothing worse than having to put in offers that make no sense at all, b/c the buyer thinks "everything happens for a reason", on homes that are listed low to begin with. Listen to the facts. What has sold? For how much? Most of all, good luck. You'll need it. .

Once again thanks for sharing your first hand knowledge, especially since you are "in the trenches" you have a much better pulse on the market than most.

one problem I could foresee coming in an increasing market was that appraisals would come in lower than expected. Are you seeing this or have appraisals been consistent with current market conditions?

[CCRESI]

I have heard, but not seen the appraisals coming in too low. All my appraisals have been dead on or a tad above sales price (knock on wood for future)

[equalrightsforeveryone]

Originally Posted by rikoshaprl

Most folks that are retirement age have plenty of equity in their homes so if prices are weak they can still sell. With prices so low in SW Florida they can buy a retirement home with cash from their first home and put some money in the bank.

We shall see, people that want to see for retirement usually don't want to sell if the market is down. Cause it's their nest egg. Unless they absolutely have to they will try to wait till they can get more money.

The rise in unemployment numbers will not help either.

[equalrightsforeveryone]

Originally Posted by CCRESI

I have heard, but not seen the appraisals coming in too low. All my appraisals have been dead on or a tad above sales price (knock on wood for future)

Appraisals always come in at what the seller want or nearly almost, that is what started the last housing bubble.
Greed was the cause homes resold for 30-40 thousand dollars more within three months of the previous sale, during the hay day. The main Cause for this was trying to get higher and higher Sale Commisions
If they start that again it will collapse the housing market.

[hiknapster]

I guess no one told him about the new appraisal guidelines. http://edocket.access.gpo.gov/2010/pdf/2010-26671.pdf

Or that the unemployment rate is going down.

[CCRESI]

I guess not

[freddyCF]

Originally Posted by equalrightsforeveryone

Appraisals always come in at what the seller want or nearly almost, that is what started the last housing bubble.
Greed was the cause homes resold for 30-40 thousand dollars more within three months of the previous sale, during the hay day. The main Cause for this was trying to get higher and higher Sale Commisions
If they start that again it will collapse the housing market.

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