Thursday, February 24, 2011

It's Still a Pig...

...even if you put on the rosiest lipstick.

That's what I recently was treated to in a recent email newsletter from our area's self-appointed luxury real estate leader.

We are in high season here in Sarasota, as snowbirds flock south to escape arctic blasts.  "I've rarely seen more visitors out and about; happily soaking-up our sunshine by day and our culture and cuisine by night", gushes the broker.  They then further expound on the predicted boom times to come:  " After one of the worst recessions in history, consumers are finally noticing the first real signs of relief. Economic growth is accelerating, discretionary spending is up considerably; and consumer confidence is at an eight-month high as the outlook for jobs brightens."

Really?

Following another link in this same email newsletter, January 2011 versus January 2010 sales were trumpeted as further evidence of the market turn-around and happy times to come for the real estate business.  I, for one, remain unconvinced, as a modest one-month increase over a lackluster 2010 economy hardly qualifies as a rebound.

Consider this article saying metro areas previously thought immune to drastic real estate price corrections are now in the same boat as Florida:  http://bit.ly/hNP8fB  Also see this article on national new home sales, down drastically in January:  http://yhoo.it/eHeJNW

True, there's a lot of visitors here right now, but based on national statistics, those visitors are probably not as likely to be here to buy real estate if they are under water on their primary property.   They're just trying to warm up.

Maybe this is why so many of the "luxury leader's" listings are drastically reduced in price (and maybe this blog is why I stopped getting those email notifications).  A realistic view of the current market is necessary to accurately price and market properties.

I would be advising home owners in this market to price their property as aggressively as possible and don't let any potential buyer get away.

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