Market Update 2009
Hello again from the beautiful Alabama Gulf Coast! “The ProTeam” and I want to give you a state of the market report. We thought it would be helpful to compare the stats of the real estate market here on Pleasure Island and surrounding areas from July 1, 2008 to the stats of July 1, 2009. We will break it down between houses and condominiums. The good news is that we think the free fall of prices is over. It is true that short sales and foreclosures are setting the market at this time but we all think that as long as we begin the hard road to national recovery this phenomenon will pass. Those of us on “The Pro Team” expect a flattening out of prices over the next few quarters. Probably not until late 2010 will we actually see any level of appreciation. We also do not feel that we will ever see the astronomical rates of appreciation that we saw from 2004 to 2006. Our hopes for our wonderful beachfront community are to return to a healthy rate of appreciation with lenders and insurers who want to do business here to serve our buyers and sellers.
Condominiums: On July 1, 2008 there were 2187 condos for sale, down from the same time in 2007. July 1, 2009 there are only 1818 condos for sale. In the first 6 months of 2008, 321 condos sold compared to the 445 that have sold the first 6 months of this year. This is all good because it shows a reduction in inventory steadily happening that will help move our market into the healthy sector. It is important for you to know that the lower priced units are the staple of our market at this time. End users, not speculators, are buying those units. Out of 98 units that closed in June 2009, only 17 were over $399,900. This is a function of a lot of things. The lending climate is requiring large down payments-25% to 35% with stricter guidelines and many people lost their liquidity in the stock market. Also, of course is the fact that we need consumer confidence to return in general.
Homes: On July 1, 2008 there were 847 homes for sale while only 194 closed. By July 1, 2009 there were 786 for sale with 264 closed. They are down but not by much. This is because the housing market always seems to be behind the condo market. Once the condo market comes back so will the housing market. For first time home buyers there are all types of incentives offered at this time that might spur some renters into becoming home buyers. Once the lower priced homes surrounding the beach area sell to end users who will live and work here, more stability will be seen in the resort home market.
We, “The Pro Team” are always available to answer any of your questions concerning your personal condos, homes or lots. Please feel free to call or email anytime and remember, that we are never too busy for you or your referrals!