The New Year always brings us optimism for the future. This year foremost on our mind is the potential recovery of the Gulf Harbors real estate market!   Will this be the year our prices stabilize and maybe even start to turn around?   Will the buyers recognize that prices have hit rock bottom and that now is the time to scoop up a great bargain?   We have always said that by the time the media starts talking about a market rebound, that it will be too late; the market has begun to turn. If we were right and that is true, then indeed the market has shifted because the press is definitely publishing more good news about real estate.

Real estate sales, like any commodity, are based on the principal of supply and demand.  If buyers return to the market and swoop up the available inventory, the supply of homes on the market begins to decrease.   As supply goes down, i.e., fewer choices available to buyers; the demand goes up.   That has certainly proven true in some recent sales.   Remember the home on Rudder Way that was listed at $149,000 and got 15 offers, ultimately driving the price up nearly $100K.   Only one buyer was successful in purchasing that home. That means that there were another 14 buyers ready and willing to buy “ if the price was right that is.   And œprice has certainly been the significant factor in real estate sale in Gulf Harbors this past year, or should I say œprice range.

At this time of year it is always interesting to look back over the past year and see what we can learn.   Our study of what sold last year was conclusive, a seller™s market exists in the under $300,000 market, significantly in the under $200,000 price range.   Take a look at the chart below to compare 2008 sales to 2009, and the prices obtained per square foot in different price ranges.

   

Price Range

Number SOLD

2008

Sold Price per Square Foot

 2008

Number Sold

2009

(YTD 12/7/09)

Sold Price per Square Foot 2009
         

$0-$99,999

2

$50.00

3

$56.00

$100,000 – $199,999

11

$130.00

32

$113.00

$200,000 – $299,999

9

$166.00

23

$145.00

$300,000 – $399,999

18

$186.00

7

$157.00

$400,000 – $499,999

5

$202.00

1

$213.00

$500,000 – $599,999

5

$224.00

1

$230.00

$600,000 – $699,999

1

$259.00

0

  

$700,00 – $799,999

0

  

0

  

$800,000 – $899,999

1

$253.00

0

  

$900,000 – $999,999

0

  

0

  

$1,000,000+

3

$249.00

1

$287.00

Note that the price per square foot fell in the under $400K price ranges, but increased in the higher priced homes.   The good news is that it appears price per square foot is headed up in the higher priced homes, but the bad news is that only 3 sold YTD in 2009 over $400,000.   That fact cannot be ignored is the bulk of the buyers are looking for the lower priced homes, probably because they are simply more affordable to more people. And these days, a buyer using financing actually has to qualify for a loan, in other words, have the income and credit rating required to actually pay for and keep the home!

There used to be an adage that the 3 top factors in real estate were   . . . location, location, location.   While location and condition are still important “ the ultimate driving factor today is price. No kidding about it “ it is safe to say that every buyer in every price range is expecting “ even demanding “ a bargain.   And, in our humble opinion, most of the homes on the market today in Gulf Harbors are absolutely a bargain at today™s prices.   Now we just have to convince the buying public!

By the way, in a public service announcement, remember to support your Civic Association and either renew or join the GHCA in 2010!   The group of volunteers that run your association work tirelessly to help us maintain and improve our property values in Gulf Harbors. Your $100.00 membership dues go a long way to make Gulf Harbors the shining example of an exemplary neighborhood where prospective buyers would be proud to call home.   Your support is greatly appreciated by all your neighbors (even if they don™t realize it yet!).  

 Until next month,  

Take Care and God Bless!

Judi Pobst & Sandy Honeycutt

œWe live it,We love it,We sell it!!