Southwest Florida condo situation a lot like the Buc's season - Denny Grimes and Company: MarketWatch Update

Mar
27

Southwest Florida condo situation a lot like the Buc's season

January's condo sales were 40 percent below '06 and 200 percent below the insane market of '05. In real numbers, more condos were sold in January 1999 than were sold in January this year. February's numbers showed improvement, but were still below 1999 sales.

In spite of a lackluster season, there are a couple of notable bright spots. First, buyers' interest and activity seem to be increasing. Buyers are taking advantage of the many blue-light specials from builders and developers. One builder is advertising prices below 2002 levels, so this has been the most buyer-friendly season since the Bucs won the Super Bowl (2002).

There are many more buyers now actively window-shopping. Although it is impossible to measure the seriousness of a "looker," it is nice to know that there are still plenty of white legs and sandals walking around our model centers (although the white has turned to a bright pink).

Second, early reports suggest that March's numbers will show a marked increase from February's. This is nothing new for our market because March, the last full month of the season, is usually the crescendo month. Seasonal residents have all season to make a buying decision, and usually put it off until the last minute. Think back to your high school days and all the book reports that were written the night before due date (thank goodness for Cliff Notes).

The twist this year is that I believe there will be a lingering condo market beyond Easter. Buyers believe that seller's motivation will peak as season ends and sellers become desperate as summer approaches. Buyers rightfully believe that some sellers will not want the financial burden of their property until next season rolls around. These buyers are counting on the fact that these sellers would rather cash out now than take their chances on the season being better next year. And with annual carrying cost in the tens of thousands of dollars, sellers are realizing that a hit now may be better than a potentially bigger hit later.

To read the entire article as published by the News-Press click here:

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