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Old 11-03-2009, 09:35 AM
 
376 posts, read 910,404 times
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another expert calling the bottom ~ sooner or later, someone will be correct:

Resale home inventory lingers - cape-coral-daily-breeze.com | News, sports, community info. - Cape Coral Daily Breeze
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Old 11-03-2009, 10:02 AM
 
Location: Florida Space Coast
2,356 posts, read 5,089,107 times
Reputation: 1572
Quote:
Originally Posted by twobums View Post
another expert calling the bottom ~ sooner or later, someone will be correct:

Resale home inventory lingers - cape-coral-daily-breeze.com | News, sports, community info. - Cape Coral Daily Breeze

I just got back from the cape on friday. Although I saw a lot of good signs such as more people working on their homes, and some previously uncompleted homes getting bought up and finished. I was a little concerned that the previous for sale signs were replaced with for rent signs. I also noticed a large increase in listings that are no longer short sales, or foreclosures at low prices which is largely attributed to "flipping".

Even on my street there was a house that sold for 72k and was only lived in for 6 mos before being resold for 97k within the same year. It's not going to help inventories if they are being put back on after being sold.

I just ran an MLS search for "active" listings in cape coral (single family homes) and it was 2048 listings. The net reduction has been running at 200 per month. The inventory is obviously not going to run all the way to zero. I haven't determined yet what would be a normal amount of inventory. Some use the figure of 8-9% of total housing units, others would use 3-6 months worth of sales. Without too much thought I would guess 2400-2800 being what the inventories should be.

Calling a bottom is hard. "affordable housing" has already bottomed and has headed upwards. Mid range 200k-300k seems to have stabilized. Higher end homes are still heading down and need to drop at least another 20% before they reach a price that people are willing to buy. So do we have to wait til all segments of the market stop falling before it's officially the bottom? If so we are not there yet. Also Cape Coral has a lot of open land, with no construction this will not bottom any time soon either.

Last edited by nhkev; 11-03-2009 at 10:28 AM..
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Old 11-03-2009, 10:40 AM
 
Location: Florida Space Coast
2,356 posts, read 5,089,107 times
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although I read a lot of realtor blogs I think this team is one of the best. They seem to really understand real estate not just how to sell houses. They seem to do a lot of research and are willing to share it. I get the opinion that they call it as they see it. you can read some of there other recent posts as well.
It’s Official-3rd Quarter Sales Sets All-Time record | Southwest Florida Real Estate Updates
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