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AndyTolbert Category: Inspirational
Current Grade: A
Total Views: 633
Member Comments: 2
 Posted on: 03/12/2008
Posted by: AndyTolbert
Blog Points: 309
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I've been saying it for months...the market is NOT that bad AND it's a great time to be buying property, both as investment AND to live in, and now it seems the market may be agreeing with me! 

The thing that was really starting to worry me was that our agents and mortgage professionals had begun to lose faith in our market, and that attitude comes through when they're talking to clients.  That's why I have spent so much time on this topic, to get you to change YOUR mindset so your clients can change theirs, so the market can get out of this panic mode and back to where it needs to be!

Well, this month we've gotten some good news, and I not only want to share it with you, but I would also like you to share it with YOUR clients, agents, co-workers, neighbors, friends, family, in fact, everyone you come within 5 feet of!  That will get the positive vibe out there and Real Estate will once again become the financial powerhouse that we all know it should be!

First, the Orlando Area MLS stats were just released, and there's some good news there! Here's a few things I noticed that I liked:
  1. Our inventory has stayed pretty much constant since May of last year, only fluctuating a little bit.  As long as it's not growing at astronimical rates like it was!
  2. Interest rates are almost a whole 1% lower than they were in August of last year.  The lower the rate, the more affordable the homes will be for buyers.
  3. Total contracts and New contracts jumped back up to levels we haven't seen since last summer! (and summer is the hot buying season!) If you actually look at the bar graphs, December was the lowest point, and January and February are trending upwards quite nicely!  Keep it up!  By the way, these contracts translate into CLOSED sales in March and April.  Yayy!
  4. Closed sales are back up a notch too!
Second, Tim was talking to an appraiser earlier this week and asked him what he's seeing out there right now as far as appraisals and values.  His answer was that for the last few weeks, he's seen the values going up on almost every appraisal that he's worked on.  Double Yayyy!!!

Third, and I mentioned this one a few weeks back already... 14 Florida cities made the Miliken Institue's 2007 List of Top Performing Cities.  Florida also boasted 7 cities in the top 30 nationwide, 3 in the top 10, and the #1 city on the list was Ocala!  This rates cities mainly on job, wage and salary, and tech growth.  Where there is job growth, there are housing needs.  We are in the housing business.  BINGO!

Fourth, real estate is on SALE!  I don't know about you, but I am a sale shopper.  I love buying the exact same thing as my neighbor but paying less for it.  Don't you?  Right now, you and your clients can buy property at ridiculous low prices that WILL NOT be around much longer!  Not only that, but in many cases you can buy property right now as investment that actually will cash flow! (I know, do you believe it? We haven't seen that in Florida for a long, long time!)

I could go on and on about why real estate is an awesome investment vehicle, industry, business, addiction, and much more, but why don't you just go see for yourself.  Show some faith in your industry...go buy a house today!
Current Grade: A
Category: Inspirational
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Jeff_Tumbarello
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Posted By: Jeff_Tumbarello on 03/12/2008

Andy

What about Dollars in Motion, do you have that data, I started to do a workup on CFL. I did not because we passed on a project in Sanford. I went to UCF, so I have lots of Love for CFL

Great blog by the way

 
Jeff_Tumbarello
Ambassador
Posted By: Jeff_Tumbarello on 03/12/2008
This post contains data specific to SWFL
Great Points!
SWFL can be bought below building cost right now!
 
Well hold on, what is building cost? It’s still cheaper to buy than to build today, many builders can deliver a product for 100 a SQFT, 01/06 price per SQFT was about 220 in Cape Coral.
 
FYI, I think in 3 years we will not have enough houses! I am exploring spec’ing houses in 2009. I know that sounds crazy but, you guys all looked at me, Like I was crazy, in 2005 when I said the Pre-Con game was not all it was cracked up to be. Its all about the timing, the Precon game was great 2002 thru 2003, before the “Lemmings” figured it out. The results from the 2002 thru 2003 buyers were used to sell the “Boom”. The “Lemmings” are going over the cliff as we speak. The great part about “Lemmings” is. They leave such cool stuff behind. In the end, the Pre-Con game produced a bunch of Real Estate agents, who do not really know how to do real estate.
 
Everyone is using the 2005 price per SQFT to justify a price today, that’s kind of like using the 2005 prices
We are seeing stuff at below 50 dollars a SQFT in the cape, Junkers that is.
 
Jan Sales to Feb sales, another $10 a SQFT went away-- it will come back--- if you have to cash to make it there
 
~~~~~that’s $15 a SQFT THIS YEAR! The valley is starting! I am going to make sure it’s not a gorge before I jump into it. ~~~~ If I were buying a HOME, I would jump in right now. It’s a great time to buy the home, you have always wanted, that you can now afford.
 
It still cant cash flow, (please confirm with simple NOI, if it does not pay you to own it, then it owns you) I, you are buying value in the SFR range not cash flow
If you desire cash flow go multi above 6
 
Stephen Luta has a great 6 unit waterfront building that throws a little cash flow; he bought real well and.... did not leverage it to the hilt. It’s for sale
 
By the way Stephen, great job at the Cape Cora; council meeting Monday! He went into a hostile environment and got the deal done! Too bad you were not get paid to negotiate by the hour, LOL
 
Another thing to factor into the rental market, as prices come down, renter will be buying, HOMES, they can afford. It may get worse before it gets better.
 
As investors, we should be buying HOMES, to sell to people who will live in them, that is this side of the cycle, if you choose to not follow the rules, you be part of the bandwagon that finds out all wealth is not “forever” the foreclosure list is long and distinguished, the scar tissue is being earned, scar tissue can be a life changing event if you let the lessons sink in, most choose to keep doing the same things that got them there.
 
This side of the cycle is the buyer’s boom, we just had the seller’s boom, and the same principles apply inversely