It seems like every three to five days; there is a newspaper or television story about real estate sales and prices. One day it's crashing, the next day it's a soft landing. No one, not even this humble realtor knows for sure. I know I predicted interest rates to come back and they have. In fact, they are far off the rates of the summer of 2005. So what's the problem? Where are the resales?
The problem is all the negative publicity about real estate sales crashing nationwide and specifically hurricanes (wrong), taxes and insurance in Florida. For these reasons everybody rushed to put their property up for sale thereby causing inventory levels to rise dramatically. Buyers on the other hand decided to wait out the storm season or realized the absurd cost for insurance and real estate taxes and put the brakes on. The combination of these events has caused the real estate market to stall. Another unseen problem is that during the run up in prices, homeowners used their dwellings as petty cash funds and now have a first mortgage and equity or second mortgage. I believe this is one reason prices have not declined as they would have if the market was crashing.
Here's the latest MLS stats for our area for September 1 through September 30. The area covered is from the Belleair Causeway north through Sand Key, Clearwater Beach, Island Estates and North Beach. There are 669 condos for sale of which 21 are under contract and only 12 sold in the same time period. As for single family dwellings, there are 127 active, 4 under contract and only 2 sold.
These numbers give you a feel for the local market and the numbers don't lie.
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.