Real Estate info & news

The beat goes on…

gp — Mon, 10 Nov 2008 17:42:01 +0000

This year has been one of the greatest challenges in real estate. I know I state the obvious. Values are coming down across the board, and while I maintain there is a lot of pent up demand waiting for “just the right time”, now is a good time to be looking in the market for opportunities. This area has not experienced the value declines seen in many markets across the country due to the fact that there was not a great deal of speculation. However, with the decrease in demand and longer times on the market, sellers are taking some of the fluff out of their asking prices. Given the time of year not much can be expected regarding sales, but I firmly believe after the first of the year that buyers will begin returning to the market and hooking up with sellers much more willing to negotiate.
Thank you, and please let me know how I can be of service to you.

January 08 update

gp — Tue, 15 Jan 2008 23:01:35 +0000

Well it has been an interesting winter so far with the market some 30%
off from the previous year. Slow describes the market and the
properties that are selling are either perceived “deals” or distinctive
properties that stand out from the rest of what is for sale.
There
will always be buyers and sellers but right now the buyers are favored
given the level of activity (anemic) and the amount of product that is
on the market.
The commercial side is showing some signs of
softening as well as retailers find their fortunes are intertwined with
home owners concerned about economic factors.
We are fortunate in
that this market did not have the level of residential speculation that
other coastal areas had and while things are slow going and will be for
the next 6-8 months, values are not anticipated to drop beyond what may
be considered a reasonable correction.
Please don’t hesitate to contact me if I can be of service, and thank you.

What the “Market Correction” really means.

gp — Tue, 03 Jul 2007 13:25:50 +0000

An interesting take on what “Market Correction” actually means in
today’s terms. Happy 4th, and please let me know how I can help you
with your real estate needs. GP

Article courtesy Realtor® Magazine

This article was published on: 07/01/2007

FRONT LINES: Economy

The Wrong Correction

BY LAWRENCE YUN, NAR SENIOR ECONOMIST

Consumers are hearing a lot in the media
about the correction in housing, and they’re understandably concerned
about whether now is a good time to get into the housing market. This
hesitancy is evident in home sales volume: Even though interest rates
fell to 6.2 percent in early 2007 from 6.8 percent in August 2006, and
the economy added 3.5 million new jobs, existing-home sales were down
8.5 percent in 2006, with further softening expected in 2007. The
irony, of course, is that although declines in sales volume have hurt
real estate practitioners, they may be a plus for consumers.

To a great extent, we can thank steady
media coverage of the real estate market “correction” for unfounded
consumer concerns. In Columbus, Ohio, for example, the median home
price is about $150,000, and price appreciation during the boom years
was modest. So when Columbus buyers stay out of the market, you know
there’s a lot of misunderstanding about today’s markets.

If there’s a correction in markets today,
it’s in home sales volume and housing starts, not in home prices. You
see the effects of those declines in weakening practitioner income and
construction employment. There’s pain out there.

But there’s no real correction where
consumers are concerned. Yes, home price appreciation has slowed
considerably, and nationally we’re expecting a price drop of 1 percent
for 2007. But that drop comes at the tail end of a five-year spurt that
increased home prices by 53 percent. We may have taken one small step
back, but that’s after taking 53 steps forward.

Even a relatively large price decline,
such as the 12 percent drop we saw in Sarasota, Fla., cannot reasonably
be called a correction when that market had a 150 percent price
increase during the boom.

When today’s consumers look at real estate
markets, they need to use the same analytical approach as investors in
the stock market. Those buyers aren’t generally concerned about the
volume of stock trades on a given day. Why should they be? They’re
focused on price trends. And by that measure, now is a great time for
consumers to be in the housing market: Prices have steadied, and
inventories are healthy.

Keep things in perspective

gp — Tue, 26 Jun 2007 20:52:22 +0000

With all the press about the woeful real estate market, no matter where you are you are wondering “should I wait”, whether a buyer or seller be. Without question most areas of the country that experienced unreal run ups in pricing over the last few years can stand to have some moderation in the market. And lenders are doing right by doing right, that is making the requirements more realistic in order to get that loan.
However, too much of anything is usually not a good thing, and this goes for negative press as it relates to the housing market. As previously mentioned, buyers are waiting on the sidelines to see what sellers are going to do. Buyers do not want to buy when prices are coming down. They would rather wait until they feel prices are at or near their greatest value proposition before pulling the trigger. Seller mentality can and still seems to be, although less and less as time goes on, that they will wait for things to stabilize and firm up and “wait it out”. I’m sure most markets, and Realtors® in those markets are seeing an increased frequency of price reductions as sellers begin the process of showing higher levels of motivation. While builders continue to offer incentives such as pools, upgraded appliances, flooring etc., most buyers I think would rather see a reduction in price.
Please read the following article on negative press, and contact me with any questions or if I can be of service. Thanks, GP

Negative
Media Stories Can Damage Real Estate Market - Many real estate
professionals insist a lot of negative publicity about the housing
market can have an effect on whether consumers will buy, sell or sit.

Market Update 6-13-07

gp — Wed, 13 Jun 2007 13:14:06 +0000

While the market continues to show sluggishness on St. Simons, less so in Brunswick, there are signs that things may be starting to turn, ever so slightly. Brunswick activity has continued to out pace island activity, it would appear from a pricing perspective. There are new developments going up touting “Only 20 minutes from the beach…” On St. Simons, the upper end of the market continues to show more consistent activity than the rest of the market, although there seems to be the beginnings of an upswing in the lower echelons of the market. We will see. Bottom line, the market in the coastal area continues to be awash in opportunities for buyers. Most people who have their homes on the market would obviously like to sell, but do not have to. So while there is an abundance of choices for todays buyer, prices for the most part are remaining fairly firm. There are some instances of price drops which is indicating an increased level of desire and reality on the part of sellers, but all in all it feels like buyers are waiting to see what sellers will do, and sellers are holding tight, waiting for the market to turn. So plenty of choice but not much break on the price.
Please call or email me if I can help you with your coastal Georgia and northeast Florida real estate needs. Thanks

Market Update 4-25

gp — Wed, 25 Apr 2007 16:18:56 +0000

While some bright signs are beginning to peak through the market malaise, overall the market continues to be sluggish. Some buyers are coming back to the table, and more sellers are bringing their homes to market as the spring selling/buying season gets underway. Properties continue to stay on the market longer and there are more price reductions making their way into the market as well. This area stayed healthy for much longer than most other parts of the country but the last several months have seen the market quiet down considerably, and this will for the most part remain the norm for the next several months as prices moderate from their torrid pace of the last several years.

This from the Wall Street Journal, 4-24:

Home Sales, Confidence Sink
Sales of existing homes plunged 8.4% during March, the National Association of Realtors said, as bad weather kept prospective home buyers huddled in front of the hearth they already have instead of hunting for a new one. The fall was the sharpest plunge in 18 years. Economists figured that after some unnaturally balmy temperatures led to stronger-than-forecast homes sales during January and February, sales in March were ripe for a snap-back with the onset of colder weather. Indeed, demand froze up even though the average rate on a 30-year fixed mortgage slipped to 6.16% from 6.29% in February, according to Freddie Mac. David Lereah, the Realtors’ chief economist, also noted that the “negative impact of subprime is considerable” and said that demand should suffer through spring as a result. Mr. Lereah can generally be relied upon to find the rainbow in any gloomy housing report, but he said that he doesn’t expect a full housing recovery until 2008. He thinks median prices will slide 1% to 3% this year.

Though consumers’ moods don’t tend to swing too wildly from month to month on the back of housing-market conditions — gyrations in gasoline prices tend to have a more acute influence — the housing slump is clearly having an impact on attitudes. The Conference Board reported that consumer confidence fell in April, as assessments of current economic conditions and the outlook for six months down the road were both weaker. Further, Ian Shepherdson of High Frequency Economics pointed out that only 2.7% of consumers surveyed in the report are planning to buy a home in the next six months, a 10-year low. That could mean home sales will continue to wither, come rain or come shine. “The housing correction is not complete,” wrote Steven Wood of Insight Economics.

While this is a macro, national trending, on a micro level we are seeing similar attitudes in our area. GP

Update 3-21

gp — Wed, 21 Mar 2007 20:43:56 +0000

The market continues to show sluggishness at the lower end as prices seem to have risen enough for investors to not be able to make the numbers work and first time buyers being priced out of the market. While there appears to be more activity in the middle and upper sections of the market, as of today there are over 400 single family homes available on St. Simons alone; this does not include condominiums. A very high number indeed. In the last 90 days there have been 53 single family sales and 29 condo sales through the MLS.

For further info on avoiding some of the most common mistakes homebuyers make, please read: 10 Biggest Mistakes Home Buyers Make - If you can avoid falling into these traps you’re likely to get a much better deal.
Please contact me for free St. Simons Island real estate information. Thank you.

State of the real estate market 2-12-07

gp — Mon, 12 Feb 2007 17:07:25 +0000

The last couple of months seem to have been quieter than usual on St. Simons. The Brunswick market is posting more activity while the island market is in somewhat of a holding pattern with not a lot of activity. The activity that there is appears to be more concentrated at the upper and lower ends of the market. It doesn’t seem that sellers are in a position of lowering prices overall, more of just waiting to see what the next few months will bring. On the national level, economists are split, with some saying the recovery began late last year and is currently under way, with others saying the recovery will begin later this year. From the Florida Association of Realtors® website, please read:

REAL ESTATE FORECAST

Housing industry analysts predict a gradual rebound for the nation's
sluggish housing market this year. Freddie Mac Chief Economist
Frank Nothaft told attendees at the International Builders show in
Orlando Wednesday that he sees ''improving conditions in sales
and home starts continuing into 2008.''

Read the full story:

http://www.floridarealtors.org/NewsAndEvents/n4-020907.cfm

For further information about the local, southeast Georgia and Northeast Florida markets please contact me. Thanks, GP

Welcome to St. Simons Island

gp — Wed, 17 Jan 2007 21:38:24 +0000

Hello and welcome to my new real estate blog. In it I will be passing along my thoughts and insights into the real estate market on St. Simons Island, as well as the coastal southeast and will include links to news articles I think are interesting. I hope you find the site useful in helping you think about your real estate needs and desires.
Thanks, Gerry Peck, Broker ~ Island Property Company

To get back to my web page, goto www.islandpropertyco.com