A Positive Look Forward in 2010

Before we get into the state of the market, all of us at The Dillard Team would like to wish you the very Best and Happiest of New Year's, may 2010 be prosperous in all areas of your life.

Also, we would like to thank you for helping our team have another successful year. We continue to grow making us one of the real estate leaders in our area. THANK YOU! In 2010 we began our 22nd year in service to our Bonita Bay clients. In spite of the problems in Bonita Bay our sales were significant and we would like to thank all our clients who listed with us and bought property through us for their patience, perseverance and loyalty. It is extremely gratifying that our hard work and sophisticated marketing tools are working for you. You can count on us to continue being the innovator in marketing your home or finding you your new home.

The state of the market...We've seen some strong growth over all in the Southwest Florida real estate market in the last year, and some noteworthy records have been set. All indicators seem to be trending upward: Sales numbers, prices, and consumer confidence are all on the rise, and industry experts are predicting interest rates to go up in 2010, as well.

However, our problems in the Bonita Bay market hopefully will be resolved in the next couple of months so now is the time to list your home if you are in the market to sell. We expect our buyers and others that have been waiting on the sidelines to buy in Bonita Bay to make a buying decision once the club situation is resolved. We expect our prospective buyers to make their decision on purchasing immediately once the turnover looks eminent.

My point is, now is a great time to buy or sell a home. Over all in Southwest Florida We're in a much better place with the real estate market now than we were a year ago: In Southwest Florida the number of sales rose from month to month almost all year long, so the market is stronger now than it has been in a while, inspiring confidence in buyers and sellers alike.

Although prices have remained low throughout 2009, meaning there were some really good deals to be had for buyers, toward the end of the year prices were showing signs of rising nationwide. To demonstrate how much the number of home sales rose in 2009, consider that the Florida Association of Realtors has reported a 61 percent rise in sales between November 2008 and November 2009, while condo sales more than doubled with a 111 percent rise!

The trend was pretty steady all year long, too, with sales increasing over the previous month almost every month in 2009. Some months were pretty spectacular, too – for instance, in October closed sales increased more than 10 percent over September's numbers.

Buyers and Sellers are beginning to sit up and take note of the improved performance in the real estate market. According to the Bellwether survey performed by the University of Michigan, consumer confidence rose 7.5 percent just in December. The other indicator of consumer confidence is how many more buyers are entering the market – they wouldn't be snatching up homes so eagerly if they didn't believe that the market had stabilized and was on the mend.

Unfortunately, however, market statistics such as sales numbers and prices aren't the only things that will be rising in 2010. Mortgage rates, which were just below 5 percent in early December, finished off the year at just over 5. Many experts, and even major players in the industry such as Freddie Mac, project that rates will rise to around 6 percent or more over the course of the next year.

While the rise in mortgage rates certainly isn't good news for those planning on buying a home – or even selling, since it will affect your buyer's ability to find affordable financing – it isn't terribly bad news either. It simply means that if you are thinking of buying or selling your home, you may have to act more quickly than you had initially planned. The sooner you list your home on the market or start looking for a home to buy, the lower the interest rates will be when it comes time to lock them in.

We're starting off 2010 on a better foot than almost anyone could have dreamed a year ago, when the beginning of the year had a much more dismal outlook. It doesn't mean that you can sit back, relax, and take your time, however. As the real estate market improves, the dynamics will change. As prices go up, you may lose the ability to get as quick a sale (as a seller) or as good a deal (as a buyer) on your home; and as interest rates go up and financing options become a little more pricey, it could affect your chances of closing the transaction.

Buying or selling a home takes a lot of finesse, as there is a lot of timing involved in
tracking trends and using those to list a property or make an offer on a house. If you are interested how current market trends are likely to affect your decision to sell or purchase a home, please feel free to give us a call. We have extensive knowledge and experience with the local markets and trends, which we would be happy to discuss with you!