Prices are the Lowest You'll Get

Bruce Hershey,Vice President of Engle Homes, has announced that the end is near for low home prices. "Once our existing inventory is gone, it's gone." Soon your not going to be able to come into a sales center and negotiate. (We have negotiated low prices for our buyers in various developments with a multitude of builders)

Hershey explained that "escalating construction costs would bar offering the same price structure for Engle's new construction homes."

"The replacement costs for one our homes, today, is far greater than what they're selling for." he said. "So, if you don't take advantage of it now, you'll never have the opportunity to get that low price again."

August Homes Sales up from July

Fort Myers News Press
Lee County statistics released Tuesday show prices and sales levels in August were higher than sales the previous month but lower than they were a year ago. Another good sign was the inventory of homes for sale was at about the same level as the previous month. (This level had been growing in previous months.)
Prices and sales for existing homes in Lee County dropped in August compared to a year ago, according to a report issued today by the Florida Association of Realtors.The median price of a single-family home sold with the assistance of a Realtor dropped 5 percent to $250,800 from $264,100 in August 2006. Sales were down 25 percent to 520 from 691 in August 2006.Compared to July, the median price was up 2 percent from $246,100. The number of sales was also up 22 percent from July’s 426.

Housing index shows gloomy outlook

Associated Press

An index that tracks developers' expectations of future home sales fell this month to equal it's record low, signaling the housing market's weakness could persist into early 2008.

The National Association of Realtors predicted last week that new home sales will fall 24 percent to 801,000 this year and forecast that construction of new homes will drop 24 percent to 1.37 million this year.

Nationally Realtors see More Sales Declines

Just a comment on the local real estate market first. We are beginning to see investors (not speculators) come back into the market place. We have recently experienced multiple offers on short sale real estate.

The National Association of Realtors lowered it's forecast for 2007 existing home sales for the seventh straight month, predicting a drop of 8.6 percent from last year. The forecast calls for existing home sales of 5.9 million in 2007, down from 6.5 million last year.
This years sales would be the lowest since 2002. There has also been a big cutback in the construction of new homes which should be viewed as a healthy trend that will reduce home inventory.

Building permits at lowest level since 1981

Lee County issued 63 permits for single family homes in August, the lowest since November 1981 when just 45 permits were issued. That's down from 588 permits in August 2006 and about half the 135 permits issued in July.

Foreclosures on Rise

Mortgage foreclosures in Lee County continued to rise in August. There were 1,232 foreclosures filed compared to 1,045 in July.
Foreclosures are "still an upward trend," said mortgage broker Jeff Tumbarello of Network Funding Solutions who tracks the local foreclosure market. "It's hard to know what to think of it until it hits the top."