Real Estate in Northeast Florida and Around the World

Since entering into real estate sales in August of 2007, the "January" trend has been rather slow.  Business tends to quiet down a few days before Christmas, and other than a few calls inquiring on listings, not much interest is shown by buyers or sellers until toward the end of January.  Even when I was on the lending side of real estate, business didn't start to pick up until March or April.  Not this year.

Already I have 4 customers under contract in the new year.  And buyers are calling every day, inquiring on listings, asking about preapprovals, etc.  There is a lot of real estate activity, and it is just not with my customers.  If this is a sign of things to come in 2011, we are definitely on the up side of the economic recovery.

Now let's put this into perspective. 

• There is still a lot of housing inventory that needs to be sold.  And while the numbers are falling each month, the market is absorbing the inventory at a very slow rate.  Which is good - it keeps artificial demand from occurring, and prices from rising too rapidly. 
• Americans love to spend money.  It's what we do best.  We love "new" stuff - from clothes, to food, to cars and houses.  I personally saw consumers spending more time in retail establishments during 2010 - clothes stores, home improvement stores, restaurants.  And the corporate earnings reports have been reflecting that during 2010.  But they have been holding off on buying those big ticket items - the houses and cars.  We can only do this so long - because we like "new" stuff.  Perhaps 2011 is the year of the "new stuff".
• Interest rates are historically low.  But, we have seen the rates gradually begin to creep back up.  Not that a 4.75% note rate or even a 5.25% note rate is a bad thing.  But, they are not 4% anymore, and those who have not taken advantage of the low interest rate environment are realizing this environment will not stay around forever.
• Data is beginning to come in from many sources and trends are beginning to build that reflect that the housing prices have begun to hit bottom.  In some neighborhoods, increases are being seen.

So - I am optimistic but guarded that 2011 will be the year that we all remembered getting "new stuff", and with that, saw America come out of a deep slump that none of us every want to repeat.  If you happen to be in my neighborhood, and have some "new stuff" to show me, be sure and give me a wave and stop and chat a while with me about it.