THE MARKET TODAY

I am often asked how the real estate market is doing up here. Truly, it hasn’t changed much over the past couple of years. This is a resort and vacation area and most homes are thus second homes. Granted, there are a many buyers out there who have a strong desire to own something up here and, have the disposable income to do so. These buyers are also pretty savvy about money and investments. Given the current economic situation, both in the U.S. as well as abroad, these people are not very inclined to dispose of any income when their 401K funds may be in jeopardy. In addition. the banks have not loosened up on lending, appraisals are at an all time low, and more foreclosures are coming online…further diminishing the secondary home market.

That being said, there is real estate being sold. Most of these sales are in the $50,000 to $150,000 range and many are cash sales. These are also primary residences for people who live and work here. Of these sales, most are distressed properties i.e. bank owned, short sales, and sellers who have there property paid off and therefore are taking whatever offer is reasonable…just to get out from paying taxes and insurance on a home they no longer occupy!

I can’t give away golf course properties, resort condos, or higher end homes. Vacant land is a tough seel as well given you can buy an existing home or cabin for what vacant land is listed for. Most of the buyers who want a nice second home are not willing to go over $300,000, and they expect to get lakefront with sandy bottom for this amount. That just isn’t going to happen-at least not now.

Bellaire and the surrounding area is a great place to live, work, and play and we get many people here year-round. I suspect people will start buying soon enough and I sincerely hope that they won’t wait until the election in 2012. That would be a serious mistake for buyers as I think much of the affordable inventory will be long gone!