Care for a Double Dip?
The AM political discussion today is the prognosis for a double-dip recession. The talking heads on morning TV do what they do best - they pontificate and the agitate. Republicans blame the Democrats and the Democrats blame the Republicans. And it seems to me that nobody does anything productive. The second most talked about issue on this date (and yesterday) is Congressman Anthony Weiner's alleged weiner picture. A close runner-up is Sarah Palin's upstaging of Mitt Romney in New Hampshire.
I will bet you that the discussion of a new potential dip in the economy will scare the beejeezus out of many potential buyers of real estate across the country. Too many people (myself included) get most of their information on what is happening from TV. I assume many watch or listen to networks or individuals that mimic their political philosophy and probably do not look for alternative discussions in other media. Networks and talking heads repeat the topic of the day (sometimes for days on end) and beat the topic into the psyche of any viewer or listener. That discussion becomes the basis for a current belief of what is actually going on. This belief may be true. But it could equally be just a theory that got repeated so many times that people believe it to be fact.
I am lucky enough to be working with some potential buyers who have not yet made the move to actually offer to purchase a property in Key West. Several have questioned "timing" and expressed concern about what will happen in the future. I understand that. Nobody wants to buy in a declining market and pay too much today what might be purchased in the future for less money.
I have written before and most likely will write again that what happens elsewhere in the United States does not necessarily happen here in Key West. While there me more and more new foreclosures being filed up north, the fact is that there are fewer new filings in Key West this year compared to last year.
There were 79 new bank owned properties in all of Monroe County between April 16, 201o to May 16, 2010. Only 18 were located in Key West and one of those was a weekly timeshare. During that same time period lenders filed a total of 93 new Lis Pendens (the legal document that gives notice to the world that a new foreclosure has been filed against a specific property). Just 25 of those Lis Pendens were for houses located in Key West.
During the 2011 April 16 to May 16 time period the number of new bank owned properties in all of Monroe County decreased to 21 and only 6 in Key West. New Lis Pendens filings for all of Monroe County also dropped to 47 with only 18 for properties located in Key West (with one timeshare included). Those numbers signify to me that the local real estate market has improved over the same time last year. The inventory of new bank owned properties has decreased and that should me bank owned properties will be less of a drag on the rest of the real estate market. The number of new Lis Pendens is less than before, but the new filings suggest that the market still has not recovered overall.
Several of the new Lis Pendens and new bank owned properties are for properties located at the Key West Golf Club and Las Salinas. Sales at the golf course have picked up over sales from two years ago but that has caused some sellers to maintain higher asking prices than they perhaps should. Presently there is a large inventory of unsold units at the golf course. If sellers really want to sell houses there, they need to meet the market. I have never shown a unit at Las Salinas and won't. I wouldn't want a buyer of mine to buy there.
Back in the hot summer days in the 1950s my dad would drive us over to the Dolly Madison to get double dip ice cream cones. I would always get two different flavors for just ten cents a cone. Nobody feared double dips back then.
CLICK HERE to search the Key West Association of Realtors mls database. If you are looking to buy a place in Key West please think of working with me, Gary Thomas. I am a buyer's agent and a full time Realtor at Preferred Properties Coastal Realty, Inc. in Key West. Contact me at 305-766-2642 or by email at kw1101v@aol. Don't listen to the talking heads. There job is to pontificate and agitate. Think for yourself.