Chicken Little Syndrome

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This morning I spent a few minutes reading a fellow real estate practitioner’s blog that I have to say is just downright crazy, and whom I am going to refer to as the “Chicken Little Blogger”. Recent articles and posts on this particular blog read something like this, “Hard Times”, “Why Prices Won’t Stop Falling”, “It’s Falling Apart As Predicted”, and “It Will Only Get Worse”. I am so over these doomsday predictions and fear mongering people. Our economy is going through a very tough time, yes, and our local real estate market is hurting, but transactions are still taking place and we still have so much opportunity around us.

So let’s look at the facts as supplied by the Florida Association of Realtors for the City of Miami Beach on residential resale activity [note: this does NOT include new construction]:

1. In calendar year 2007, a total of $3.04 billion in residential resale activity, or 4,618 transactions with an average sale of $657,973.

2. For the first six months of 2008, a total of $1.2 billion in residential resale activity, or 1,885 transactions with an average sale of $640,267.

I remain positive, motivated and appreciate what is available to me. So let me share with you an example of a deal we closed this week. A few days ago we turned over the keys to a first time homebuyer of a fantastic one-bedroom art deco condo in South Beach. This property has high 10′ ceilings, a faux fireplace, totally redone kitchen, original wood floors, in a classic 1930’s art-deco building, and situated in a fabulous central location. I am talking just a few steps to Flamingo Park, three blocks to Lincoln Road Mall, two blocks to Washington Ave, and three blocks to the beach.

We represented the sellers and in just over 2 months sold the property for 92% of asking price. The sellers originally purchased the property as a second home and thoroughly enjoyed the property over the years. They walked away with a solid profit and many memorable experiences.

Now I don’t know about you, but even if we see a new low of $2.0 billion in resale activity for 2008, how is that such a HUGE problem? Unfortunately, I think that the real issue is that people don’t want to do the work and change their ways.

Wow, I guess the sky is not falling on my head.

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