I was recently asked if we have “hit bottom”. I don’t think that there is a more loaded question for a Realtor. If I say “Yes” and the market drops in 5 months, I look like a misguided fool and if I say “No”, I am called a pessimist who does not believe in the product (the local real estate market).
However, since I like to live dangerously, I am going to address the question. I think that we have hit a leveling off period which may be the bottom of this drop. The number of actual sales in Punta Gorda / Port Charlotte in 2009 is much higher than our number of sales in 2006, 2007 or 2008. There are more deals happening which is good in two ways. First, it helps to reduce inventory. Less inventory means less competition from other sellers which means less pressure to reduce pricing. The second benefit of more transactions is simply a building of consumer confidence. It is becoming “all right” to buy real estate again. For 2-3 years, buying real estate was not seen as a wise move. Now, however, the statistics say that more people are buying real estate. The summer is not typically our busiest time of year. However, this year’s summer was busy. If that continues through the winter and spring, we may be a much healthier market in May 2010.
Two positive sidenotes:
- Money magazines article ranking our area as the number one place to retire brought positive press to our beautiful area
- There have been many articles in Forbes magazine, the WSJ and others suggesting that real estate is one of the best hedges against inflation. Good or bad, many of the people that I am talking to think that inflation is coming. If it does, there are countless advisors saying “Get into Real Estate to protect against inflation”. If we are going to have inflation (which I am not rooting for at all), at least I am in an industry seen as a hedge.
Visit our website to learn more about Punta Gorda real estate. You can search the Punta Gorda MLS or read about Punta Gorda area neighborhoods. It is a one-stop resource when buying or selling Punta Gorda property.