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Wow, 2010 has started off with a bang!  I've been so busy showing and listing properties that it's really hard to believe.  I told my wife yesterday that I haven't seen this much activity in years.  That's right...YEARS!  And the activity during the holidays was unprecedented for me.  So, what's going on?  Is the real estate market in the beginning stages of recovery?  Have we seen the bottom?

Well, I've given up on trying to predict what's going to happen in these volatile times, however there's no doubt that market activity is tremendous in some areas.  There are at least several factors causing this recent activity. 

First of all, real estate prices have declined so significantly over the last several years that many buyers cannot pass up on the spectacular opportunities.  I'm personally seeing deals that I can't believe.  I've been calling them "stupid" deals.  What I mean by this is that some of the deals I'm seeing are so unbelievable that anyone with cash and a desire to invest (or buy a primary residence) would be stupid to not buy.  Some areas have seen price declines of 50% or more!  Many existing homes are priced far below replacement cost, meaning that you couldn't build a new home for anything close to the price of some existing homes.  There are literally some crazy deals out there just waiting to be had by savvy buyers.

Next, the media began to call "the bottom" a few months ago.  The Case-Shiller Home Price Indices and other data began to show that home prices were beginning to stabilize in many areas of the country.  This information has certainly helped to increase activity in the real estate market. 

Low interest rates are also adding fuel to the frenzy.  Did I just say frenzy?  Yep, I guess I did. That's certainly not the correct word for the Vilano and South Ponte Vedra Beach area, however the activity in this area for homes under 500K is very high.  And foreclosures in Vilano and South Ponte Vedra that are priced attractively are selling in 10 days or less! 

Another factor that is bringing buyers into the market is the first-time homebuyer tax credit being offered by the federal government.  This tax credit has been extended AND expanded.  Keep in mind that you don't have to be a first time buyer in order to take advantage of this program. For various reasons the tax credit hasn't helped the Vilano and South Ponte Vedra Beach area much, however it has certainly helped many areas in Northeast Florida. 

In summary, the overall real estate market is doing much better now than it has in recent years.  And whether you're looking to buy or sell, now is a very good time.  If you need to sell my advice would be to put your home on the market as soon as possible.  Single family home inventory is very low in our area (South Ponte Vedra and Vilano Beach), which will help if you're selling. Only time will tell if the increased activity will last through 2010, however it appears that we may be experiencing a relatively short term boost in the market, and then it could slow again.  Mortgage interest rates are slowly rising, the tax credit will expire at the end of June, the foreclosure problem is far from over and the economy is still volatile. But deals abound for buyers in many areas and sellers are seeing much more activity at this time.  We can certainly breathe a sigh of relief...for now!

Feel free to call or e-mail me anytime if you would like to discuss buying or selling!

Copyright © Todd Gifford 2010