Gregg Fous Perspectives in Real Estate

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When Bad News is Good

When bad news is good.

 

I remember kernels of wisdom from my mother when I was a kid: "When you take an aspirin, drink the whole glass of water; or

 

 Don't worry, bleeding is good on a cut, it will clean in out,"  or 

 

" If all your friends jumped off of a bridge, would you do it too?"  

 

But I also remember her saying to me, "Well, Gregg,  things will have to get much worse before you even notice you have to make them better."

 

At the end of last year I wrote a column, "Southwest Florida is Clearing its Throat" about the status of our market recovery.  I would like to make a few more comments about that and why things getting worse may actually be progress.

 

When I see more bad news in the paper - which is just about daily; I think, well, repair is on the way:

 

"Microsoft announces layoffs;" I am thinking: "business is making the adjustments necessary to fix this economy."

 

"More foreclosures announced this month;" ok, we are getting closer to the end.

 

"Housing prices are 30% lower than two years ago;" great, there are deals to be had out there.

 

I am not suggesting that the news about the economy is a zero sum game (for every winner there is a loser) but I am suggesting that the economy and the market are adjusting, reacting and working towards a solution.  I do believe in cycles. I do believe in the inevitability of the ups and downs and most importantly, I believe we are in a repair mode and have entered a recovery period or are about to.

 

Elsewhere on this page you will see links to some property tours.  On one, Tatiana and I spent Friday looking at bank deals and short sales in the area.  On Wednesday Tatiana made 12 appointments. By Friday two of those homes were under solid contract. While we toured the homes we picked up one buyer that was out looking by herself.  Last week we sold one of the homes we had identified as a bargain ( sail boat access three bedroom home). See brief summary below.

 

Everywhere we went we saw other buyers out shopping for homes.  I did an informal survey of developer sales centers. .I went to High Point, Parkside, Cape Harbour, and Tarpon Point. All were busy.  Vlatka held an open house yesterday  at a single family home in Cape Coral and over 35 visitors! Sally Bond Lowry report similar activity at Nora Price's House off McGregor.

 

 

The "bad news" about pricing is good news for activity and for sales.

 

I met some buyers last night from St. Louis. They had heard about the low prices on condos downtown. (Click here). When I talked to them they had a smile on their face; kinda like the smile a buyer gets when he is sensing a deal. They were excited that they were in a position to capitalize on our sale prices.

 

Next time you read the bad news in the paper, look at it as the inevitable clearing of the throat before the cold is over. But remember - there is a lot of good news as well.  As I reported last week, the final quarter of last year was the busiest quarter in home sales  in the history of South West Florida.. I fully expect that this quarter will be even better.

 

Comment balloon 1 commentGregg Fous • January 25 2009 03:27PM
When Bad News is Good
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