With the incredible amount of television and press coverage given to the housing industry during the past two years, it is easy for the public to become swept up in the “story.” Not a day goes by where you open your daily newspaper or turn on the 6:00 o’clock news and you are inundated with negative stories on the “bubble” in the real estate market and the impending devaluation of your home. After hearing and seeing something long enough, you will eventually start to believe it. The media is in a large way responsible for the correction in the housing market. True, there are some other factors involved such as an over supply of inventory, investor greed, an interest rate spike and some regional economic indicators. And make no mistake about it; housing markets are regional – not national.The reality of our Florida housing market is as follows: (1) the sun still shines most every day in Florida and fair weather will always draw potential buyers; at last count 800 a day flocking into our state (2) well built product in great locations, fairly priced will always sell and appreciate our over time (3) the majority of home buyers are seeking a place to live, not a place to flip and turn in a short period to make a quick hit, and, finally (4) correction in our southwest Florida real estate market was needed; a 30-35% yearly appreciation as experienced in '04 and '05 is not healthy and it could not continue. Which, by the way, the next story you see or hear, about our local real estate market being down 5-7%, remember a 60% rise in ‘04 and ‘05 minus a 5% correction in ‘06 still relates to appreciation of over 50% in a three-year period. When was the last time you read or saw that story in the media?
Sincerely,
Mark G. Botts
President
Premier Communities, Inc.
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