Several years ago it seemed as if real estate prices were going up overnight. People jumped in the real estate market for fear of being priced out of the market in the near future while others jumped in based on pure speculation (and hope for easy profits).
Then the market slowed and reversed itself. The reality now is quite different.
While walking this past week I noticed several vacant houses in my neighborhood. They have been vacant for some time.
- There is the one that is currently a bank owned property listed for 65K. I remember talking with the former owner when he was considering selling several years ago when it would have sold for $200K.
- Nearby is the foreclosure that has been vacant for a couple of years now. The investors got into the rehab and I guess ran out of money.
- There is the foreclosure where the former owner just walked away. It is not on the market yet but when it goes on the market the buyer will certainly pay a lot less than the $220+ the previous owner paid back a few years ago.
This is just some (not all) of the examples of a real estate market explosion that are close to home for me. I am sure you can find similar cases in any community throughout the USA. These are just evidence of the real estate explosion and subsequent implosion.
The reality is:
- Real estate is cyclical. When you are riding the up bubble things are good.
- When things are down, things can be good - for the new buyers!
If you are in the market for a house or condo in Viera, Suntree or Rockledge, Florida, call me to discuss how I can assist you. If you are considering selling, perhaps as a short sale, drop me an email for a no obligation market analysis.
Gary L. Waters PLLC, Florida licensed real estate agent, Century 21 Baytree Realty, Rockledge, Florida serving Florida's Space Coast including the cities and communities of Melbourne, Viera, Rockledge, Suntree, Merritt Island, Cocoa Beach and the surrounding region.
Read my blogs Florida Homes for Sale, Moving to Brevard County, Florida, and Brevard County Florida Real Estate Information.
Gary. It's sad to see all the empty and run down poroperties in my area. We have some neighborhoods that look like a ghost town. The plus side is we just bought ahouse for 40% of it's value when it was built in 2006. It's a very good time to purchase.
There is good and bad. I am hoping more folks come along and see the values and ultimately restore balance to the market. Thanks.
Gary,
All buyers in my area want a foreclosure - in perfect condition, however! I have sold more than my share of distressed properties; both in terrible and in great conditions. What worries me is the increase in vacant homes; many owners are opting for a "strategic default" and just walk away... Might mean quite a while before balance returns.
Irene - The foreclosure in perfect condition - a myth! The strategic default is a real option for some - and I can understand. Thanks.
Someone's loss is someone else's gain. Very timely post.
The median price in my farming zip codes when up by $90,000 from March to April 2010, more than 40%. It's great for owners but not so great for buyers, and increases like that cannot be sustained, as we saw in the recent explosion/implosion.
Gary, we are fortunate to have only one abandoned house near us and the owners still mow it! I have heard of areas like BB is describing where the whole neighborhood is for sale, but not in our area of town.
I do see many opportunities in real estate investments...
Good luck!
Joshua - Investment opportunities are bountiful. Thanks
Sharon - It is those areas where everything is for sale that may pose good opportunities - if the buyers will take a chance. Thanks.
Jim - Your area sure sounds like the exception. I hope it is a signal for us all! Thanks.