A chart is a very handy tool that can easily sum up market conditons. Real Estate in my opinion is a mix of science and art. The science component includes many parts, but mostly consists of numbers, Numbers, and NUMBERS!
The other aspect of real estate investing is the "Art". Where is the market going? What social/emotional factors are effecting purchasers and sellers? What possible variables could effect value? You see, most charts look at the PAST. If we all had a chart that showed the future, we would all be rich! The other detrement about charts, is they are not always local in nature.
Only yesterday, it was published (By the National Association of Realtors)that Fannie Mae chief economist predicted home prices will fall another 1 to 3% before bottoming out in the third quarter this year and 3 years before new housing starts pick up. The Zillow chief economist predicted 3 or more years of a nominally flat market. Should we rely on exclusively on those predictions in Lee County? I would venture to say "No". In a previous posts about new construction, I guessed that there could be a new home shortage in the making in Lee County. Also, our local market experienced a 19% jump in housing prices. Our market recovery is under way.
One of the reasons Zillow is predicting a flat market, is because of the lurking "Shadow Inventory" of foreclosures and short sales. In my opinion, the shadow inventory is not something to fear in Lee County. If you look at the chart above, 2009 was our best year for sales EVER! The demand for the distressed property inventory is as strong as the supply. I also believe that the banks will continue to control the inventory, as to not further lower housing prices. These are my theories, which is part of the "Art" aspect of real estate.
This chart, in my opinion, showed that the "fear factor" had pretty much been eliminated from Buyers in 2009. This chart also shows that condos were starting to show a come back. We have been very busy selling condos this season!
At Florida WestShore Realty we consult our charts and form our own opinions on the market. We have worked with many succesful investors. If you are considering investing in Lee County Real Estate, please call us at
(239) 415-6500. Remember, 82% of millionaires acquired wealth through real estate!
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