You bet! We have all suffered through the doldrums of the last eight to ten months of slow or non-existent real estate sales. The national and local media, print and television constantly remind us of the bubble bursting, home builders cutting back on new builds, etc., etc., etc. Quite frankly, I'm tired of hearing it.
The reason for the slow down is EVERYONE either jumped or tried to jump on the caboose of a speeding train. Builders and developers paid ridiculous prices for vacant land and other properties to redevelop, that in normal times would not garner fifty percent (50%) of the price they paid in the last 12 to 18 months. Every Tom, Dick and Harry who was in possession of a decent credit score and a few bucks either purchased or reserved an investment property. Mind you, most of these people never owned an investment property in their life.
As these purchases were being completed, they were immediately placed back on the market at $1,000,000, $200,000 or more than the previous sales price. All in the fact there was every kind of hybrid mortgage available and you have a recipe for a glut! Some of these owners/investors who have been unable to sell have turned to renting. This has caused an abundance of rental properties available, there by depressing the rental rates.
So, you see there isn't a housing bust at all. It's just a matter of everyone coming to market at once. However, better days are coming sooner than later.
Ric Cornelius is the Broker/Manager of Sand Key Realty Sales and Rentals, Inc. Sand Key Realty has three offices with 40 agents. One office is at 740 S. Gulfview Blvd., Clearwater Beach, 727-443-0032; the second office is at 2701 Gulf Blvd., Indian Rocks Beach, 727-595-5441; and the third office is at 309 Belleview Blvd., Belleair, 727-461-4200.
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