Remember When Foreclosures and Short Sales Grew on Trees

I remember when…do you?

I remember when the longer you waited, the more the price of a property would drop. I remember when we had almost 12 years of stagnant inventory cluttering our MLS. I remember when “short sale” was a new term and we were paving through uncharted territory. I remember when a Broker told me short sales would be a 6 month fad back in 2007. I remember when the sub-prime loan crash happened. I remember when there were over 4,000 vacant lots on the market and only 577 were under contract. I remember when you could low ball an offer…multiple times. I remember when foreclosures sat on the market for up to 6 months. I remember when anchor communities such as Rosemary Beach had a paltry 19 home sales in one year. I remember when everyone was waiting for the bottom of the market. I remember when I had endless vacant properties and gulf front condos to show. I remember when there was almost no new construction on Scenic 30A. I remember when lots sold in WaterColor for $58K or $27K in Forest Lakes. I remember when property search results would pull up hundreds of short sales and foreclosures. I remember when there were over 2,000 foreclosure starts in our area. I remember when the oil spill hit and caused our market to drop another 10%. I remember when I sold a short sale for $275K that had a $1millon mortgage. I remember when back up offers where difficult to get. I remember when I would write offers far below list price. I remember when no one wanted to buy distressed subdivisions or vacant land. I remember when gulf front condos did not cash flow. I remember when loans were 6% and 7% with zero down. I remember when I could show 7 properties and not have 6 go under contract that weekend. I remember when there were no multiple offer forms. I remember when I used to say “come in low” versus “we need your highest and best”.

It is truly amazing the roller coaster ride our real estate market has been through along the Emerald Coast for the past seven years. The market has absolutely shifted in a positive direction. I firmly believe the bottom of our Micro-market was during the BP Oil Spill. This is when the best deals were made. Buyers were running scared and banks were giving properties away in fear that our pristine beaches would be ruined forever. I am very excited that our market has shifted, but with all market shifts we need to reset our thinking and how we approach real estate. So much has changed just in the last 12 months.  I find myself in awkward situations where I must re-adjust a client’s perception of needing “a legendary deal”  like those in 2010 to finding a great buy or an excellent income producing investment property. The deals of 2009 and 2010 will go down in history and will be topics of discussion for many generations. Our distressed inventory is significantly depleted and new REOs are few and far between…even with all the press about a glut of REOs…they have not been flooding our market in the volume of other areas in the country. If the REOs do make it to our market they are quickly gobbled up by a flurry of cash wielding buyers or high bidding buyers with financing.

Yes our market is shifting. Yes prices are slowly creeping up. Yes there are still great buys with historically low interest rates. Yes you need to buy now not later if you want to get a good deal on a premium property.

I remember when it was a Buyers Market…do you?

Don’t miss out on the buyers market. Give us a call @ 850-583-1640 and let Team Baranowski find the right deal for you!

 

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