Recently WINK TV interviewed the Ellis Team at RE/MAX Realty Group and Denny Grimes & Co. and reported that a local expert says Lee County real estate market has bottomed. We really said we see 2008 as a year where the SW Florida real estate market bounces along the bottom. We did not officially call a bottom to this market, although we are seeing signs of downward pricing pressure abating. 2008 should be a year with some ups and downs but mostly a bump along the bottom, and these ups and downs shouldn’t be confused with a full-blown recovery, nor a full blown pending crash. The market can go both ways along the bottom.
As we’ve said throughout 2007, we cannot officially call a bottom to the SW Florida real estate market until we see a continued pickup in transaction volume, and exisiting home sale inventory declines. Prices have come down substantially, and buyer interest has definitely picked up. Some buyers are moving ahead as inventory is high, negotiating leverage is great, and interest rates have recently come down again. Property insurance rates are on the decline, and so is property taxes, although we believe we will see even greater property tax declines next year.
Stay tuned for a future article on what is happening today and why we see signs of downward pricing pressure easing.