Press release from Bill Watson, Chairman of the Board, Watson Realty Corp.
Watson Realty Corp. sees a substantial increase in units sold in 2009 over 2008. Bill Watson, Chairman of the Board, shares some information on Watson Realty’s different markets. The Central Florida Market was the first market to feel the economic downturn at the end of the first quarter in 2006. The Jacksonville Region followed in 2006 starting in July, and the North Central Region which includes Gainesville, Palm Coast, St. Augustine, Putnam County, Keystone, Fernandina, and St. Marys, GA., was another three to six months behind. The accounting principle of “first in, first out” seems to be a truism in the real estate cycle.
The Central Florida Region had 507 transaction sides for the month of April compared to 385 sides, or up over 31% over 2008. Year to date, there have been 1,687 transaction sides against 1,247 in 2008, or up 35% for the first quarter of 2009.
For the month of April, the Jacksonville Region had 539 transaction sides in 2009 compared to 469 transaction sides in 2008 up 14.93%. Year to date in the Jacksonville Region there have been 1,752 transaction sides compared to 1,452 transaction sides through 4/30/08, up 20.66%.
The North Central Region, the last area to feel the impact of the downturn in the market in late 2006 and early 2007, had 235 transaction sides in April, 2009 against 224 transaction sides in 2008 up 04.9%. Year to date the North Central Region has had 743 transaction sides against 773 transaction sides in 08’, down 4%.
The difference in the regions validates that each market is different and each recovers at a different pace. We expect the North Central Market to be 6 months behind the other regions since they were the last to go in and they will be the last to feel the impact of the correction in the market.
The $8,000 tax credit for the First Time Home Buyers and the bond incentive program as well as the recent program in the state of Florida for assistance mortgage loan down payment assistance using the $8,000 tax credit, are having a very stimulating effect in the $250,000 market and lower.
Bill Watson mentioned that he is keeping an eye on the stock market recovery because so many of the upper end purchasers have many of their assets tied into the market and are reluctant to liquidate when they feel the market is going to be increasing. The volume of written business for the first 4 months in of 09’ was $753,422,816.00 against 2008’s $868,767,951, down 13.28%. There are more sales and less volume indicating the hot market is in the lower price range.
We are concerned that some purchasers are going to lose out on the $8,000 tax credit by waiting too long to find the home that they want. Homes will increase in demand as buyers scramble to find the home of their dreams and close by November 30, 2009. Thus stabilizing or increasing prices in their price range.
The public is going to look back at 2009 and say that this was the greatest opportunity in the last 50 years to own the real estate of their choice at the best value and the most competitive interest rates. Watson Realty Corp. recommends that anyone who is even considering moving up or buying another home to make a decision is the next 6-9 months to take advantage of this once in a lifetime opportunity.
Watson Realty Corp. is a full-service real estate company with 39 residential sales offices, 20 property management offices, Watson Commercial, Watson Home Improvement, Watson Plumbing, Watson Electric, Watson Mortgage Corp., Watson School of Real Estate, Watson Title Services of NE FL, and Watson Relocation Services. For more information on Watson Realty Corp. search
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