Jacksonville, Florida Real Estate - Defining a 'bad' real estate market?
It's not a secret. Everybody knows it. The real estate market is bad... bad, bad, bad! Right?
Maybe... or maybe not. I think it depends on an individual's perspective.
For the better part of the last two years, that's all we've heard and read in the news... the real estate market is bad. But what exactly does that mean? What makes it a 'bad' market?
As it is being described/defined in the media, a 'bad' market means that fewer properties are being sold now than were being sold a year ago. This reduction in the number of sales has very obvious and meaningful negative effects on businesses, individuals and the economy in general. Fewer sales means fewer workers in the immediate industry and the many support industries as well. There is no doubt about it... that is bad!
But what does this mean for individual home sellers and home buyers? Does this reduction in the number of sales/transactions automatically signal doom and gloom for them? More specifically, if you are in the market to either sell or purchase real estate, just how does this market shift affect you on a personal level?
The terminology used to describe this current "bad" market is Buyers Market. All this means is that there are more sellers in the marketplace than there are buyers. As with any market or product this results in lower prices (that's just basic economics).
Now, if we are talking about oil and we pick up the newspaper and read that it is a buyers market in the oil industry I dare say that most people reading this would say that is a 'good thing'. Why? Simple - because that would mean that we (consumers of gasoline) will be paying LESS at the pump. Why would we expect to pay LESS? Because the sellers of the oil would need to increase the volume of gas sold to make up for the shortage of buyers.
This is exactly what has happened in the real estate market. Just like oil, real estate prices got so high that buyers quit buying. And, in turn sellers are being forced to reduce prices on their real estate in order to entice buyers 'back to the pump'.
However, in Jacksonville a homeowner who wants to sell is still likely to make a decent profit (unless he happened to have purchased within the last year or two). If the seller has owned the property for at least 3-5 years, his ROI will, in most cases, be quite respectable. In fact, if he has owned the property for 5 years or more (and has not refinanced his equity in the meantime) he should enjoy a rather nice ROI.
All financial markets fluctuate. There are bull markets and there are bear markets. There are booms, busts and corrections. This is nothing new.
If you want to sell and 'move up' in price, this is an ideal time (if the reasons aren't obvious, contact us and we will go over it with you). If you need to sell, you have little choice but to sell at market value regardless of the amount of ROI you enjoy. If you do not need to sell now, then simply wait until the market turns again... it will.
Don't allow the 'big picture' cloud your 'personal and immediate picture'. Apply a little perspective to your individual situation and you may be surprised and encouraged to learn that it's not all bad... not by a long shot!
We invite you to visit our website and/or contact us to discuss your particular needs. We are more than happy to help in every way possible.
www.BestHomesInJacksonville.com
Timothy H. Fennell, P.A.
Susan A. Fennell, P.A.
Broker Associates / REALTORS
www.BestHomesInJacksonville.com
This story has quite a bit of validity to really pass along to certain media faucets. I believe the negative media on the Housing market makes the situation worse in a nut shell.
We are not affected by the market as any parts of the country and still media blasts our areas as they don't even know why they are reporting our area as a bad market.
I challenge every Real Estate Professional to keep in mind and get the media to look at one stat, and we can get the monkey off there backs.
Increased gains on property's from date of purchase to todays date and the increased value over time. You do not make money when you sell it, but when you buy the home is when you made the money. You either bought low or bought high and that gives the indication of how the market is. It is up to the media to focus on this as Robert Kyosiaki features this in a book called, RICH DAD POOR DAD.
Thanks for your article as I believe is frustrating to hear repeated media having nothing else to run after. The Iraq war is very boring to hear about for people, and not enough casinos caught on fire, as well as no national weather destryoing things accross the world. I know this will never happen, but I would certainly like to one day see the media focus on a great positive story, or two or three. Apparently even the weather channel is forced to create negative media, to even help sell tires. How you might ask,
THE PGA president had spoken with the Weather Channel in regards to bad forcasting due to decreasing the rounds of golf in the east coast area which certainly play a huge role in the number of rounds played nationally for statistical reasons, he also owned one of the courses, and with bad news people wouldn't drive to the destination to play golf. They told him, that there was more money in Tires than there was in Golf. The tire companys such as Bridgestone & the Michelan Man have more power than the PGA. He stressed that the PGA gave more money to the communities in charities than any other sports organization and they still told him it was a money thing. If you ever watch the weather channel you will notice the tire commercials right after the weather reports if they are cloudy or rain, snow, which they will push the button if they get the chance.
This is a true story as I heard and listened to the PGA President speak in regards to the weather channel being influenced by bad reporting. So least to say, the weather, real estate, and etc... is for a reason?
Dave Werth
www.NewRealEstateProperty.com
Hi Tim!
I couldn't agree with you more. We have been VERY busy with buyers the last 2 months, so there IS activity out there for sellers if they realize that they need make their property a "value buy."
I have a lot of clients in this 'bad' market. I know that depreciations not fun for the person who bought in the last four years, but life is cyclical.
I do know that my first-time buyers who were priced out of the so-called 'good market' and my real estate investors don't think it's a 'bad market'. They smell opportunity...and I'm there to help them take advantage of it.