Because of the fluctuations that have taken place in the banking industries at the end of 2007, we are seeing both the up side and the down side for our clients. Many people that experienced dramatic increases in interest payments due to ARMs coming due have opted to sell their homes rather than allowing it to be foreclosed on. Suddenly the market has been flooded with homes in every imaginable price range. Even lakefront properties are now on the market at competitive prices (note that I didn't say reasonable). I checked on Birkdale and found over 30 properties for sale and another 29 in Birkdale Village. Normally there would possibly be 10-15 at one time in either development. Northstone has over 50 for sale right now. Listings are moving rather slowly at this time. New home sales are off the mark right now with $5000 - $15,000 realtor bonuses on many of the homes.
It is not that real estate is not a good investment. There are still lots of people coming into this area that find our taxes, property values, and quality of life very desirable. I look forward to this all settling down soon. Now, the mortgage companies have tightened up a bit, appraisers are much closer on true market values, and hopefully the days of 0% principle loans and low interest rate ARM loans has passed.
Investors can find real deals in the overabundance of homes for sale. HUD homes and foreclosures offer unbelievable opportunities for the investor. Either way, land prices remain high and those who act quickest on these offerings will benefit the most.