Real Estate Authority Blog

When they were younger my kids would say "Are we there yet?.  My stock answer was "We are almost there". 

It's been a long time coming, but we are almost there. I see light at the end of the tunnel for our southwest Florida real estate market. Despite the the negative economy, our local market has improved each quarter this year and the third quarter was no exception.  Pending sales (homes under contract) in the third quarter were 41% higher than they were in 2006 and 140% higher than last year.  Of course not all pendings close but given normal attrition this year shapes up to be the third best on record.

The most amazing stat is how strong September was. In our area, September is usually the slowest month of the year.  Pending sales in September were 200% above 2007 and 13% above the record setting year of 2005.

So what's the reason for the sales surge? It's no concidence that the fall in the stock market as coincided with the resurgence of our local real estare market. Capital always seeks better and safer investments. Another reason is that homes in the short sale catagory are hitting the markets as bank owned properties, also known as REO (real estate owned) orioertues. REO's accounted for 44% of last month's sales, slightly higher than the 42% private owner sales.  Given the backlog of REO property, it looks like this trend will continue.

Given the limitations imposed upon investor purchases, it is clear that end user homebuyers are back in the market.  Homebuyers are looking for the buy of a lifetime ... and getting it.  Despite what you read, banks still are lending .... even if it courtesy of the federal government. 

So are we out of the woods yet?  Not by a longshot, but the signs are encouraging.  Now the question is "If opportunity knocks, will anyone hear it?"  I think so.  Just ask the thousands of buyers who purchased last month.