The real estate market has slowed at Wild Dunes. Is the slow market a bad thing? It may be for some of the folks currently looking to sell their property, but a change of course was needed.
The market was 'on fire' the past couple of years. Around May of this year, buyers threw water the fire and reduced it to just smoldering.
This chart tells the story. It reflects average selling prices of one-bedroom condo's at Wild Dunes, but is typical for most of the areas properties. We had a fairly healthy increase in real estate values over the years. Property was appreciating in the neighborhood of 15% per year, providing an excellent return.
That all changed as we neared the end of 2004. Investors started gobbling up real estate and supplies became very low. With little inventory to choose from, prices began to rise sharply. In the past two years, we've seen price increases in the 30-38% range providing a fantastic return for those who bought into the market. Appreciation at that level could not be sustained.
Fast forward to today - I would characterize our current situation as "returning to a more 'normal' market" and would expect to once again see appreciation in the 15% per year range. The challenge for many (not all) sellers, is that they remain priced out front of the market, asking too much for their property in light of this correction. As prices come back in line with where they should be, we will see buyers once again move into the market.
Have any questions or comments? We welcome you to post them to this site or if I can assist in any way, please don't hesitate to contact me.
Dennis - You've been a great agent for us personally already, and this is certainly going to be a great service for all property owners, not just your current clients. What a great way to keep us all informed. betsi
Posted by: betsiwilson | December 11, 2006 at 08:01 PM