Boom Ending In Southwest Florida
thehousingbubble2.blogspot.com
The Herald Tribune reports the boom is ending in Florida. "If this summer's figures are any indicator of things to come, the days of super-scarce inventory are over. The number of condominiums and single-family homes listed in the Manatee County market shot up to 1,810 at the end of August, a whopping 157 percent increase from the 705 listed during the same month a year earlier."
"In Sarasota County, the increase was not as dramatic, but inventories were still up 35 percent. There were 1,295 listings at the end of July compared with 956 at the end of July 2004."
"Real estate agents say they are delighted to have more properties to sell, but they acknowledge that the inventory increase is having an effect on prices. Sky-high prices are the main reason for the increase in inventories. A growing group of buyers can no longer afford the inflated values. As a result, sales have slowed, a fact that is backed up by the numbers."
"There were 1,012 closings in the two counties in July 2005 compared to 1,402 in July 2004, a 28 percent decrease. It's making buyers put the brakes on, said Dick Plumb, an agent win Sarasota. 'They're just not going for the high prices any more and there are lot of price reductions coming in.'"
"In addition to the slowdown in buying, an increasing number of investors are putting properties on the market in the hope of cashing out at the top, said Ron Cornette. 'I think a lot of people are cashing in on the fact that houses have doubled or tripled in value.'"
"Jean-Yves Bancilhon said, 'I bought the house as an investment and thought it had appreciated enough,' Bancilhon said. 'I also found it a hassle to rent. There's a glut of rentals out there.' Joe Ozier is equally disenchanted with renting. 'I had an awful experience with a renter,' said Ozier, who bought the property for $284,500 and has listed it for $429,000. 'Besides, I can't rent it for enough to cover all the taxes, insurance and other costs.'" |
