Good news...

Our Real Estate data is indicating a CAUTIOUSLY optimistic forecast for 2007. We believe many sellers now understand that most of the gains realized in the last 18 months have been erased, essentially resetting our prices to 1st/2nd quarter of 2005. I am of the personal belief that demand for waterfront condos is extremely sensitive to supply/demand issues – much more so than single family homes. There are simply too many condos available for sale at the moment (both existing and precon) and that reason is preventing the market from stabilizing sooner. Couple that with the “down market” that is mentioned every other day in the St. Pete Times, ridiculous insurance costs, large tax bills, and you have a depressed market.

Indications up to now point to a busy 2007. The insurance issues appear to have a solution on the horizon and buyers have come to terms with property taxes. Personally, my phone has been ringing off the hook and I have written 2 offers on my own listings. This comes after months of little or no interest.

I believe buyers are realizing we are about at the bottom of the market reduction and demand forces are moving us back into a positive direction.