We have been in a market with gradually declining prices for the past 24 months.  The prices are being pushed down because of an extremely high number of investors and speculators who bought properties purely based on the assumption that they would be worth more tomorrow. At the point that increases in pricing, taxes, interest rates and insurance costs became unsustainable prices began to decline. at first, many buyers and seller (and agents) did not recognize these realities.

Now, we are in what everyone recognizes is a buyer's market.  Some folks still have unrealistic expectations, namely that prices will start to steadily climb again, or even bounce back to where they were before.  Sorry folks, but it's not gonna happen. We expect prices to continue to slowly drift downward until the point where the deals become too good to pass up. When enough buyers step forward to grab stuff, prices will stabilize or plateau for a few months and the volume of sales will increase quite by 20% to 30% above current levels. 

At that point, the buyers will come back and sellers will be able to clearly see exactly where their homes should be priced.  Right now, there aren't enough closings to ascertain what the market price is in many areas.  When will the market stabilize?  Nobody knows, but we are starting to see some amazing (below market) deals, and that is the first step to stability.

Here is an MLS market report for the last 3 years showing all aspects of real estate activity in Central and South Brevard County.

For reference to market pricing, here is a report on price increases and decreases for a particular size of newer home county wide.  As you can see prices shot up about 2.5 times between 2002 and late 2004, but have since dropped by about 1/3.  Part of the increase is explained by the fact that builders tend to only build homes in nicer areas as prices increase, and that they pile on more and more amenities and upgrades on as demand increases.  The 1900 square foot homes that people were buying in late 2004 for $275k were not the same homes that were being bought for $195k two years earlier.  they did have nicer kitchens, flooring and other upgrades. conversely builders have stripped out extras as demand slows to focus on low price points.

Trust- We don’t claim to be perfect, but our people are smart, hard working, honest and highly ethical.  We can gladly provide professional references.

Skill- Every buyer or seller should insist on having a skilled agent working on their behalf.  Keep this in mind-  we will do everything ethically possible to gain an advantage in the purchase process.

We appreciate your looking our website over and would ask that you consider discussing our services further with us.

Thank you

The Beach Towne Team

Realtor@BeachTowne.com
411 Ocean Avenue Melbourne Beach, Florida 32951