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Thursday, September 3, 2009

Raining on Real Estate

The last two days have been drenching our island town with afternoon storms. The rain is a welcome change to our normally tropical sun-soaked weather. Spending all this time indoors has given me an opportunity to catch up on some real estate news.

Statistics I compiled from our local Board of Realtors shows that we currently are looking at the lowest inventory (number of homes actively listed in the MLS) since October 2005! Locally, I can tell you that there is an on-market inventory of about 13 months. This is significantly down from the peak high of 49 months worth of inventory in November 2006.

To boot, the average list-to-sell ratio is hovering nicely at about 90%. That means on average, homes are selling within 10% of the asking price. Note that I said average - as I have seen some homes in short sale or REO status sell for as much as 50% off of the asking price. I have also seen homes listed in the lower price ranges come to bidding wars because they are percieved as such great values. And I'm not talking about within the last decade. I am talking about RIGHT NOW.

I can also say that year over year sales volume between last year and this year has been higher this year for the last 5 consecutive months. And this is our "slow summer season".

This is basic supply and demand, folks. Demand is slowly gaining around here. The market is crazy, so don't go jumping in without a licensed real estate agent by your side. I'd be happy to be that agent. E-mail me at kreark@gasparillaproperties.com, or you can link to me through my company's website www.GasparillaProperties.com.

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