Hi folks. Yesterday was the day I did my monthly market update to send out to all of my Sellers. I put these updates on my other blog BrokerBryant.com and then send the link out to my customers. I’ve found this to be a very good way to utilize a blog. By writing articles and then linking to them it really makes our jobs easier and shows our customer/clients that we are on the ball. So if you are not using your blog as part of your communcations you need to start. It’s a little harsh but my Sellers need to know these things. Here it is:
OK, it’s time for Broker Bryant’s July market report. Let’s get right into the stats for Poinciana Fl including all of the 34758 and 34759 zip codes. As of today, there are 1,712 houses on the market. Of those, 616 are priced less than $200,000….259 less than $175,000 and 80 priced less than $150,000. Folks this was unheard of 12 months ago. Property values are coming down and they are coming down rapidly! Out of the 1,712 houses on the market 628 were built in 2005 or later 1,287 were built in 2000 or later.
In July of 2006 there were 116 closings. In July of 2007 there were 47. That’s a decrease of 60%. No surprise. It’s been down 60% all year.
From 1-1-06 to 7-1-06 there were 926 closings. This year same period 377. Again a 60% decrease in closings. Out of the 377 that have closed 138 of them were less than 2 years old.
Now folks, what does all of this tell me? Simple. Poinciana is in dire straights. If your property is not priced BELOW market value, it will NOT sell. Period. You will not get lucky. If you don’t NEED to sell, take it off the market. If you NEED to sell, lower the price until it sells. Call me and we can discuss a strategy to get it sold. Just don’t be caught off guard if I suggest a very low price. The market is going to get worse. This is a long term down turn. Things will NOT be changing anytime in the near future.
OK, now that I got all that negative reality out of the way, let’s talk about what Tutas Towne Realty has been doing. My business has actually picked up some since the beginning of July. We had a few closings in July and have several more properties under contract to close over the next couple of weeks. I currently have 25 homes on the market.
I have been updating and adding on to my Internet advertising for your properties. All of my listings can now be found on Craigslist and numerous other web sites. Here’s a link to an article I wrote with this update. So, I am continuing to move forward to try and get some of your properties sold in due course.
Now lets get to the big issue in Real Estate right now. The mortgage market. Folks, I’m not a mortgage expert nor am I a big economics guy but let me put the current state of affairs in a nutshell for you. The mortgage market is crashing. Over 100 major lenders have gone belly up since the beginning of the year. This week American Home Mortgage filed bankruptcy. They were a HUGE lender and did tons of loans in Poinciana. The sub-prime market is no more. If a Buyer doesn’t have money and good credit they will not be buying a home. It’s simple: No available mortgages…No Buyers…No sales. Here is an excellent article that you need to read. It will put this crisis in terms you will understand. Again, it ain’t purdy AND it’s getting worse.
We are now smack dab in the middle of the worse real estate market in 20 years and, in my opinion, Poinciana could be the worse real estate market in the Country. Some of you may remember interest rates as high as 18% in the late 80s? Well hold on tight. Major change be a comin’.
Well, let me see if I can end this on a positive note. Folks, as always, I will do every thing I can to get your properties sold. We have to work together to get through this. I can’t perform miracles but I can keep you informed with what’s going on and help you to price your properties accordingly. Things are changing daily. Heck, we may reduce your property and a week later I may call and ask for another one. Bottom line: The market is what it is. I can’t get you equity that doesn’t exist. BUT if we work together I can get your equity out before there is none left.
Here are some links to some of the new web ads I have been working on:
Please feel free to give me a call with any questions or suggestions.
So what do you think? Too brutal? I’ve actually already had two of my Sellers call REQUESTING price reductions! Folks, we are doing our customer/clients a disservice if we are not being brutally honest with them about this current market. They MUST know these things. We are getting paid for our experience and knowledge. So if you haven’t already I challenge you to contact your Sellers today and lay it out for them. Have you? Will you?