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Friday, May 28, 2010

The Fallout From the Real Estate Explosion (and Subsequent Implosion)

Several years ago it seemed as if real estate prices were going up overnight. People jumped in the real estate market for fear of being priced out of the market in the near future while others jumped in based on pure speculation (and hope for easy profits).

Then the market slowed and reversed itself. The reality now is quite different.

While walking this morning I noticed several vacant houses in my neighborhood. They have been vacant for some time.
  • There is the one that is currently a bank owned property listed for 65K. I remember talking with the former owner when he was considering selling several years ago when it would have sold for $200K.
  • Nearby is the foreclosure that has been vacant for a couple of years now. The investors got into the rehab and I guess ran out of money.
  • There is the foreclosure where the former owner just walked away. It is not on the market yet but when it goes on the market the buyer will certainly pay a lot less than the $220+ the previous owner paid back a few years ago.
This is just some (not all) of the examples of a real estate market explosion that are close to home for me.  I am sure you can find similar cases in any community throughout the USA.  These are just evidence of the real estate explosion and subsequent implosion.

The reality is:
  • Real estate is cyclical. When you are riding the up bubble things are good.
  • When things are down, things can be good - for the new buyers!
If you are in the market for a house or condo in Viera, Suntree or Rockledge, Florida, call me to discuss how I can assist you. If you are considering selling, perhaps as a short sale, drop me an email for a no obligation market analysis. 

Gary Waters, Florida licensed real estate agent, Century 21 Baytree Realty, Rockledge, Florida

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