Brevard Real Estate Blog

Five Important Factors Affecting the Real Estate Market and Your Home Sale

1. Largest standing inventory of new homes, new construction and new subdivisions in the past 30 years.

a. Builders are your direct competition

b. They have deep pockets and will do anything to move their inventory.

c. They are offering buyers everything from furniture, no payments for one year to paying all of the buyers closing costs and more.

2. Statistics confirm that in 2004-2006 at least 40% of all sales in the US were investor sales.

a. Investors are dumping their homes on the market trying to salvage their equity.

b. They have given up on trying to rent because rents are also dropping.

c. They are highly motivated because they do not want to keep making large monthly payments or worse yet end up in foreclosure.

3. Adjustable Rate and Interest Only Mortgages are coming due. Lenders handed these mortgages out to anyone with a heartbeat from 2002-2006.

a. Many of these folks with have mortgages that are way higher than the value of their home, making it difficult to refinance or make payments.

b. They are now being forced to try to sell at a loss or worse yet face foreclosure.

c. They are flooding the market with homes also.

4. Predictions for 2007 and 2008 are that 1.5 – 1.7 Million homes are going to be repossessed.

a. This will add a huge number of homes on the market and will drive prices down even further.

b. Banks will do what they have to do to get these homes off their books and sold….they too are your competion.

5. Finally, there are the normal folks like yourself, who simply want to sell for various reasons continually adding to the expanding market.

NOTE:
Ok, the five things above are rarely occuring at the same time and they are having an adverse affect on sale prices for Brevard Real Estate sales.  In March we had 660 homes sell in Brevard up from 400 the previous month...sales are improving as prices continue to slide.