January 2009 Review

The market at the end of January shows some encouraging trends.  102 single family homes closed during the month, up almost 20% from 86 homes that closed last January.  Lower mortgage rates and lower home prices both may be contributing factors for this increase.

Currently it seems like a great time to buy a home and get an extremely good deal.  There are some short sales and foreclosures in the Citrus County market (in January a little over 30% of sales).  Some of these are great deals, and the net effect is that other homes marketed in the county have also come down substantially in price.

Where are we headed from here?  This market has already dropped about 40% from the peak prices in the fall of 2005.  All indications are that we should have reached a bottom.  Expansion and repair plans by Progress Energy suggest some relief for the local job market.  The new construction market remains very soft.  If this market would experience some relief, the local economy would probably be in fairly good shape.

There is reason, at this point to be optimistic about 2009.

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