Here in Pinellas County FL, commerical construction has been clearly on the increase and home starts are appearing all over with custom builders.
Home insurance, tax exemptions, flood insurance, obama bill, all have the potential to knock a giant pool of shelter seeker buyers out of the game entirely. THAT is not the balanceing we what to see.
Your Friend & Realtor,
Tony Lewis * RE/MAX of Valencia firstname.lastname@example.org Cell - 661-510-7975
The multiple offers and appraisal issues are effects of the low inventory and high demand, which is driving pricing up.
I've heard the word "bubble" thrown around, and this creates a negative impression of the market similar to the early 2000's. Then we had an artificial market bubble due to poor lending standards creating a false demand.
What we have today is simply a legitimate appreciating market due to low prices, low interest rates, low inventory, high rents, and high demand. As this supply vs. demand ratio decreases, appreciation will slow.
The most telling real estate statistic is the Absorption Rate, also known as "Month's Inventory"... in the area where I do 70% of my business- Santa Clarita & Valencia- we are at 49 days inventory (35 for Valencia). A seller's market is anything below 120 days. This time last year we were at 104 and 92 days, respectively.
*This is the information your agent needs to know in order to strip away the "mystery" of the market and help you make a wise real estate decision based on your personal circumstances...
Speaking on behalf of all my Professional colleagues: ASK THESE QUESTIONS BEFORE YOU WORK WITH AN AGENT. :)
Feel free to contact me anytime if you have any questions/needs.
Dan Andrizzi, REALTOR
Keller Williams VIP Properties