Wednesday, August 22, 2007

How bad is the real estate market?

I just received a flyer from a realtor on Sanibel Island Florida were we recently purchased a home. In the letter she was talking about the state of the real estate market on the island and indicated that there is currently over 12 months of inventory on the market today. Prices are down and she thinks the market is holding up well we compared to the rest of Florida. She is advising possible sellers to get their property listed as it may well take 12 months to sell if it’s priced right. Here are some numbers:

Condo’s Sold:
2005 232
2006 143
2007 66
Pending 7

Houses :

2005 266
2006 156
2007 104
Pending 21

I will be posting over the next few days some of my thoughts over the last year that I have published in my printed newsletter so you can understand why I still feel negative about the prospects of residential real estate.

I don’t believe that we are even half way through this correction. With the price of housing on a national level down just under 3% on a year over year basis we need more damage before we can see a positive move up in real estate prices. I realize that it seems impossible that we could see real estate prices, on a national basis, fall another 10% before things get better.

Check back in a few days and see what’s on the Blog.
Dan Perkins

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