Market Activity Awakening

Stock Market Up, Florida Home Sales Up, National Home Sales Up -- Will Optimism Turn Up?

The U.S. stock market has been on the upswing in a big way. The DOW, for example, recovering from the 6,000 point range, has been trending up, up, and up since March, closing today (August 21st) at 9,506.

Existing home sales activity in Florida is up 11 months in a row, with the number of sales transactions soaring in July 2009. However, home prices in Florida sank from a year ago. Florida’s median sales price for existing homes last month reportedly was $147,600; a year ago, it was $193,800 for a 24 percent decrease, according to the Florida Association of Realtors. Welcomed news for potential buyers of Florida real estate, with better affordability of a Florida home. But on the other side of the fence, no homeowner likes to see their property value slide downward, especially if one needs to sell a home anytime soon.

Nationally, existing home sales activity had the highest increase in ten years, according to news reports today. A majority of economists in a recent survey, reportedly think the recession is over, and recovery has begun (we’re supposedly in healing mode). There are hopeful signs, perhaps foreshadowing better times to come.

Locally here on Amelia Island, Florida, there are indications that real estate activity is awakening after a long slumber on this barrier island near Georgia.

I couldn't help but notice a residential lot was recently cleared in the Seaside community, located near the Atlantic Rec Center, with a new home to be built by Bryan Lendry homes. I also recently rode by new home under construction (SEDA) towards downtown in the city of Fernandina.

In Ocean Cay, a neighborhood easily walkable to the beach on the island, there's a home addition (a new bonus room over a garage) almost finished. I've seen the construction workers there for over a month.

These are casual observations made while jogging and riding my bike around familiar streets in Fernandina. It's been awhile since such new construction housing activity has taken place along my personal routes, at least, with the housing slump. What was a commonplace sight (new residential construction work) a few years ago during the housing boom, had virtually disappeared.

Also, a Nassau County building department official stated in an August 2009 Board of County Commissioners meeting that he's "starting to see signs of a slight trend (up)."

I also just heard an existing home in Ocean Oaks near the beach went under contract a few days ago, after several months for sale (and this was not a “distressed” sale, but a traditional one.)

So it's happening. "They're back..," not in full force, but at least some buyers are surfacing around Fernandina Beach, on Amelia Island. Let's hope home buyer interest in our island community continues to increase. (Rather than saying buyer “interest,” I suppose it’s more accurate to say buyers actually pulling the trigger. As "feeder" markets around the country improve, allowing buyers who need to sell a home first elsewhere to be able to act on a property here.) It’s been a waiting game for sellers here and elsewhere around the nation.

There's still too much for sale vs. limited buyers in the marketplace -- an unbalanced market. It's still a challenging environment for "traditional" sellers, competing with distressed sales. These factors help to create downward pressure on home prices. The real bargain seekers (or bottom feeders as some would call them), are scooping up foreclosures at discounted prices. Sellers who are not in a distressed situation are still competing with these properties, since qualified buyers will be looking at all their options and look for the best value. Of course, there are would-be buyers who do not have the credit credentials (cannot pass current bank standards) to purchase a distressed properties with their more stringent terms. Cash buyers are the ones in the best position to take advantage of market conditions in this real estate buyers market.

OTHER NEW CONSTRUCTION AROUND TOWN

The city of Fernandina Beach is nearing completion of new construction buildings at the Fernandina Beach Recreation Center on Atlantic Avenue. Located not far from Main Beach Park, the city’s Rec Center is a hub of community activity with its city swimming pool, local childcare programs, entryway into the Egans Greenway, and it's the place to catch a shuttle to the Amelia Island Lighthouse for a tour. The Rec Center’s new teenage classroom, aquatics building and a new restroom facility near the Egans Greenway, appear to be almost done. The city's new marina Welcome Center at the Fernandina Harbor is also near completion.

W.B.L

SEE MORE ABOUT RECENT HOUSING NEWS...

Read the latest Florida real estate activity news from the Florida ... Read detailed press release from the National Association of Realtors http://www.realtor.org/press_room/news_releases/2009/08/strong_uptrend