Happy Investing in 2012

By
Real Estate Broker/Owner with Daytona Condo Realty, 386-405-4408

Well, it is 2012, and there are hopes that Real Estate market will stabilize and start improving, though I am not sure I know what it means. I see people buying properties at very low prices now, and they are not in a rush to start paying way more, so for them this is the best market ever, as they do not expect it to be so wonderfully depressed ever in our lifetime...

Sounds terrible, isn't it? But it shouldn't...

As I say, there is no such thing as bad market. In the same market and in every market somebody makes a killing and somebody loses a shirt. Happy InvestingThe fact that there are way more of those, who are losing their shirt, than making a killing, does not change anything. There are a lot of people who would not buy anything until they see that the market has improved.

But what does it really mean? That the prices go up, and there will be more willing buyers, and the sellers will be making more money? But if you are investor/buyer, are you in the market to pay more rather than less?

So, you would not buy a property today for 40c – 50c on a dollar, but rather wait till the market starts «improving». Which means that if you wait till it is obvious, it as well can mean that you are late again. And that you will pay too much too late, and will be burned again.

Of course, investors know and use it to their advantage. But investors are not those of us with some spare cash, who bought and sold a few properties. Investors buy when the prices are the lowest and not when the market is «improving», and are selling, when buyers start buying like crazy, meaning it is time for investors to unload.

Basically, investors buy in disaster market, and sell in "improved" market.

Of course, if you are the Seller, who missed to sell at the peak of the market a few years ago, waiting for «improving» market would make all the sense in the world. Actually, unless you can't hold to the property, selling today may be the worst decision one can make.

Judging by the prices (would cost more to build), this "improving" market is not far, and the wait should not be too long. And do not rush and sell the minute the prices start going up. Because there is inertia, and once started going up, it will continue for quite some time, and selling even a few months later can mean a world of difference in prices.

That's how it happen before, that's how it will be again... and again... and again.

Here is residential sales figures for the last few years in Daytona Beach Area. Pretty interesting. See the price psf? Ask a builder you know to see if he can build decent home for that price.

Happy Investing

Happy investing in 2012.

* Photo via Flickr.com byalq666

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Rainmaker
523,826
Jill Sackler
Charles Rutenberg Realty Inc. "Said and Done!" - Merrick, NY
Long Island's South Shore Real Estate Agent

I hope this "improving" market is not far away but Suze Orman, who I just caught today on t.v., doesn't agree.

Jan 11, 2012 07:41 PM #1
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Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Selling Daytona paradise for heavenly good prices

Jill - the good part is that nor Suzy Orman, or the President can stop the market. So, we will rather soon see.

Jan 11, 2012 07:44 PM #2
Rainmaker
332,420
Vern Eaton
Askov, MN
Realtor 320-630-6995

I am seeing pockets of improvement here in Minnesota.  Much room for improvment, but still it is better than a year ago.

Jan 11, 2012 08:09 PM #3
Rainmaker
409,895
Michelle Francis
Tim Francis Realty LLC - Atlanta, GA
Realtor, Buckhead Atlanta Homes for Sale & Lease

Jon, 

Opportunities are there for those willing to make decisions and see what works best for them!   We are getting so short on inventory I am very curious to see what will happen to pricing.  My strong gut feeling tells me the market is getting a bit better in some areas.  

All the best, Michelle

 

 

Jan 11, 2012 08:37 PM #4
Rainmaker
1,418,028
Tom Braatz
Re/Max Realty Center 262-377-1459 - Oconomowoc, WI
Waukesha County Realtor Real Estate agent,Waukesha

Jon

Happy investing to you as well in 2012. The buys are certainly out there

Jan 11, 2012 10:32 PM #5
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Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Selling Daytona paradise for heavenly good prices

Vern - that's the whole point. Better for whom?

Jan 11, 2012 10:49 PM #6
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Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Selling Daytona paradise for heavenly good prices

Mivhelle - as far as I know, decreased inventory triggers prices going up. I am pretty sure it is going to happen no matter what gurus tell us

Jan 11, 2012 10:50 PM #7
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Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Selling Daytona paradise for heavenly good prices

Tom - yep, the buys are just incredible.

Jan 11, 2012 10:51 PM #8
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Virginia Hepp
ERA - Mesquite NV Homes For Sale - Mesquite, NV
Mesquite NV Homes and Neighborhoods - Search MLS

Jon, you are almost a millionaire - AR, that is!

I have watched specific neighborhoods here bottom out and then start to go up in price.  And they are holding.  And there are more and more of them.  The areas with price reductions are experiencing small reductions and then selling.  Well priced listings sell quickly here.

Smart buyers are paying attention, and not just the investors, who are always ahead of the game.

Jan 11, 2012 11:33 PM #9
Rainmaker
1,871,055
Gabe Sanders
the BlueWater Realty team specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

You are so right Jon, but human nature is like a herd mentality.  Many are afraid to come out of the pack and make the smart decision.

Jan 12, 2012 07:01 AM #10
Rainmaker
94,742
Linda Holloway
Keller Williams Realty Tampa Central - Tampa, FL
REALTORĀ®, Your Next Home in Tampa Bay Starts Here!

Hi Jon, you make the point that real estate is cyclical very well.  I like your line "there is no such thing as a bad market"!

Jan 13, 2012 02:16 PM #11
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Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Selling Daytona paradise for heavenly good prices

Virginia - That is AR (LOL). Looking for an exchage for dollar a point.

It happens here pretty much the same way.

Jan 13, 2012 05:12 PM #12
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Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Selling Daytona paradise for heavenly good prices

Gabe - this is so true. People want to see others succeed but do not understand that they are not replicating their success, because timing is the key. you do the same thing later and the results are different.

Jan 13, 2012 05:14 PM #13
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Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Selling Daytona paradise for heavenly good prices

Linda - and this is the key to investing. Buying when the prices are low and selling when the prices are high.

The rest is just BS.

Jan 13, 2012 05:16 PM #14
Rainer
174,835
Jark Krysinski
REMAX CREST REALTY WESTSIDE - Vancouver, BC
TeamYVR Team Leader, BA,ABR,IRES,IMSD,LLB

Jon, i hope Vancouver real estate market also improve! LOl~ and my team and me are gonna encourage our clients to invest. It's the right time! Good luck to your business!

Jan 13, 2012 06:57 PM #15
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Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Selling Daytona paradise for heavenly good prices

jark - let it happen

Jan 13, 2012 07:11 PM #16
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