Real Estate is local, I tell my clients that on a regular basis.  TIME Realty Services is based in Punta Gorda Florida. We are in a transient area, we have visitors from all over the United States and Europe on a regular basis.  The article below is the perfect example of why you cannot accept something written in NY as a indicator of real estate in Southwest Florida.

Compare these three points with those in the article:

1. Builders are Building Homes – In Charlotte County the new building permits for 2015 totaled 917 for the county. This does not include the amount issued in Punta Gorda.
2. Sales are up – January was up 6.8% YOY  with 354 sales and  742 properties in pending at the end of the month. We have very little distressed inventory.
3. Listing inventory is up – In January our absorption rate changed for the first time in over a year…. 811 new listings up 30.8% YOY….With the rate of sales we have just over 4 months of inventory.

Next time you see a article talking about real estate trends or statistics, check the location, chances are they are talking about a city that has nothing to do with real estate in your area.

If you want the correct answers ask a Realtor® in the local area.  For information in Charlotte or Lee Counties call a member of the TIME Realty Services team. We have the answers to assist you with all of your real estate needs.

NEW YORK – March 1, 2016 – The median price of existing homes is rising, but the increases don’t seem to motivate many sellers or new-home builders – and that lack of motivation contributes to a growing dearth of inventory in many markets.

While the National Association of Realtors^® (NAR) recent existing-home sales report found that January’s total housing inventory was up 3 percent from December, it was still lower year-to-year.

“The spring buying season is right around the corner and current supply levels aren’t even close to what’s needed to accommodate the subsequent growth in housing demand,” says Lawrence Yun, NAR’s chief economist. “Home prices ascending near or above double-digit appreciation aren’t healthy – especially considering the fact that household income and wages are barely rising.”

The Fiscal Times recently looked at the main reasons behind the lack of inventory.

1. Builders aren’t building new homes
Builders say that the cost and availability of labor is a huge factor for the drop in housing starts this year. A recent Commerce Department report showed that housing starts fell 3.8 percent in January month-over-month. “The disappointing construction numbers reflect the loss of small builders and a shortage of construction labor,” says Yun. “Small construction companies have traditionally been the backbone of new-home building, but the difficult financing environment created by local banks since the downturn has thinned their ranks.”

2. A slowdown in the distressed market
Distressed sales are down from 11 percent compared to a year ago and at the lowest level since November 2007, NAR reports.

3. People are staying put
Why aren’t people interested in selling when home prices keep rising? There are a few reasons why they’re not budging. More than two-thirds of baby boomer owners, for example, choose to make renovations to their home so they can age in place rather than move. There’s also a decrease in people moving to a new area for a job.

Also, many owners are simply stuck in their homes due to equity issues. According to CoreLogic, around 8.1 percent of homes are still worth less than their mortgage.

Finally, a lack of inventory can add to the lack of inventory: Many owners won’t try to sell their own home and move up if the roster of available homes is tight. They’re generally willing and ready to sell, but they’re waiting until the selection of homes grows.

Source: “Prices Are Rising. Why Aren’t There More Homes For Sale?” The Fiscal Times (Feb. 25, 2016)

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