FENCE-SITTERS ARE MISSING THEIR CHANCE

While the vast majority of folks welcome news of the housing industry recovery, there are a few who are simply not happy. Who are these naysayers?

Mostly the fence-sitters — the potential homebuyers who sat by as housing prices hit bottom and kept waiting for them to go lower. These are the same folks who looked at home after home and just knew if they waited long enough, a better deal would come along.

So where are they now?

Many are still renting. As they waited for the bargain and the lowest price, homes were being scooped up by families who recognized the benefits of homeownership and knew in the longrun taking the plunge would pay off.

And they didn’t have to wait long. Last year saw a healthy increase in home values across Central Florida, with demand at a five-year high.

Many of our readers have told us that our searchable new-home database (which you can find at thefloridahomebuyer.com) is a very useful tool. But it’s also a useful tool for us.

While we’re collecting information on the new homes offered in Central Florida, we’re able to spot trends within the industry. For example, a look at the data for 2012 shows several areas of interest.

First, inventory homes (homes the builder has started without a having buyer lined up) are now going under contract long before they’re completed.

Second, prices are steadily on the uptick. Modest price increases were noted in early 2012, but as the year progressed price increases became larger and more frequent.

Third, and of particular interest, is the fact that communities are selling out at a record pace. We actually saw one community go from grand opening to closeout in just a few months.

So when you look back at the trends that started in 2012, and are gaining strength in 2013, I must say, to paraphrase Alicia Keys, “This town is on fire!”
 
THERESA SWANSON
Publisher
theresas@thefloridahomebuyer.com