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Sellers can expect at least two to three more years before markets are back into balance.  Distressed listings, such as short sales and bank foreclosures, typically sell for 20% below market value, which can cause a drag on home prices overall.

From a recent article in Realtor Magazine:   "The sharp price discount on today's distressed sales is a symptom of an imbalanced housing market.  In better times, a distressed property might be snapped up at market value.  Consequently, the market needs stronger sales volumes to reduce the numer of homes on the market and stabilize prices. 

By far the best remedy for the ailing housing market is a stronger economy.   Job growth and stock market gains are closely tied to consumer confidence, with consumers commonly citing concerns about jobs as the main reason for not purchasing a home.  Also, ongoing concerns that Europe's debt crisis could spread and reduce domestic economic growth, a lack of consensus in Congress over the deficit reduction plan, and a major revision to economic growth in the first half of 2011 combined to send stocks on a roller coaster ride in the second half of 2011. 

On a brighter side, both MLS inventories and shadow inventory showed signs of easing at the end of 2011.  Short sales have become easier to close, and the foreclosure inventory is being reduced.  Government programs aimed at helping struggling homeowners are being revised with the hope that many more homeowners will benefit in the future.   Distressed inventory will continue to be reduced as home prices firm and employment grows."

The next few years will continue to be a challenge as sales have most likely changed forever from the wild, wooly days of the housing boom. 

It seems it has been a buyers market for a very long time, and it has.  However, there have been successful sales for sellers whose homes are not  bank owned or short sales, as long as those sellers have realistic expectations in this difficult market.

 First of all, sellers must be realistic in setting their sales price.  This is determined by using comparable properties in the same area that are currently on the market, those that are pending sales, and even those that have expired without selling.  The latter gives an indication that prices were too high.   The most important comparables are those homes that have recently sold, within the past 3 to 6 months.   An appraiser will be required to use distressed sales that were bank owned, as well as short sales, if there are no other recent sale comparables to pull from.  This will, in turn, provide for a much lower appraisal on a non-distressed home.   Sellers need to know what they are competing against.

 Most buyers will initiate a contract with a lowball offer.  This is not to offend or insult the sellers, but to have a beginning point with which to negotiate and compromise, attempting to come to an agreeable price.   Buyers also have access to comparables and are much more educated in real estate values today than in the past.  In a buyers market, it is expected that sellers will move downward from their asking price and accept a lower offer.  Therefore, sellers need to prepare for  that "cushion" when deciding on an initial sales price. 

Most sellers today will not make much profit, if any, from various home improvements done, unless they include major renovations of kitchens and baths or added square feet under air.   Keep in mind that most improvements are done for the enjoyment of the current homeowner and do not necessarily add value to the home.

Flexibility is the key in today's market. If there are unrealistic expectations as to price or profitability, then perhaps it is best to wait out the market until prices rebound.  Otherwise, only frustrations will result for the sellers, buyers and realtors involved.  

Legoland, Florida, located on the famous grounds of former Cypress Gardens in Winter Haven, has become a big hit and already has established international appeal just three months after its grand opening.  Having originated in Denmark, Legoland has parks in Germany and England, along with one in California.  Brick based lego toys, invented in Denmark in the 1930's, have established world wide appeal with generations of all ages.

Lego building kits of all kinds have become extremely popular and all ages of children, as well as adults are amazed at the villages, buildings, animals and attractions that have been built from legos at the Park.  There is a Miniland, where many famous buildings are in miniature; a Lego Kingdom castle; a Lego City, and many other riding attractions, live shows, restaurants and shops.  And just in case you become nostalgic for the former Cypress Gardens,  there are still some beautiful gardens to stroll through and enjoy the vast collection of native plants and flowers.  

Truly a lot of fun and different kind of adventure from the other theme parks, Legoland has something for everyone and will give a full day of entertainment to all. It is a place well worth putting on the "to do" list while in the Orlando area. 

Sellers and buyers can both benefit from having the latest information concerning overall sales in a particular area.  A recent article in the Lakeland Ledger listed some valuable statistics for properties sold in Polk County for the month of November, 2011.  The following information will be numbers for existing home sales, single family homes only.

"Overall average Polk County existing home prices decreased from the previous month by 4%, as well as the previous year by 2%.  In Davenport,  the average sold price was $123,005; median sold price was $121,000 and 117 total homes sold in November.   These numbers include all the distressed homes, such as bank owned and short sales." 

Approximately 55% of all home buyers in Polk County paid cash.  Most sales were in the price range of $49,000 to $150,000.  A home price over $200,000 accounted for only 100 homes sold out of a total of 550.  The market is definitely favoring the lower priced inventory. 

For those buyers who require financing, the local appraisals remain low, due to comparables used that must include the distressed sales.   Foreclosed properties tend to sell at a discount of 20 to 30 percent and this definitely hurts those who are selling at normal market prices. 

It will be interesting to see where we are at the end of 2012.  Experts say this year will be a bit better than last, but we will continue to stagger under a slow economy.  A real rebound is still years away.

For buyers, it is still an incredible time to purchase a home; for sellers, a realistic price must be determined to expect any activity or interest.  For both sides, a great deal of patience . . . . . . . . .

The Orlando area experienced extremely high crowds over the holiday season this year and it was a big boost to our tourist industry.  Not only were the Disney Parks, Universal and Sea World overflowing with guests, but the newly opened Legoland in Winter Haven had to close its doors due to capacity guests several days in a row.  Add to this, the seasonal bowl games and unusually warm weather, the traffic was flowing heavily on Interstate 4 for weeks from the beaches to the attractions.

With all the visitors here enjoying Christmas and New Years, there was also an increase of activity in home showings.  This marks the beginning of the "peak selling season" when those from Canada, northern US states and  foreign countries make their way to our warmer climate to vacation and look for ideal investment opportunities.   Florida homes are currently offering good value at different price levels, specifically the lower price ranges.   One of the biggest opportunities right now is affordable retirement homes in existing communities.  Home affordability overall is at it highest level since 1970!

There is always something happening in the Orlando or Disney area to draw the crowds and bring people here to begin looking at options for second homes or vacation investments.  It is definitely the right time to be thinking about a home in Florida as the state's population is predicted to grow again in 2012 and with demand, prices will be on the rise. 

Next weekend Disney World will host it's annual Marathon, followed by a Princess Half Marathon in February.   Then in March we celebrate the annual Flower & Garden Festival . . . . .  and the beat goes on and on and on . . . . .  

Start thinking about buying a Florida home and enjoy all the abundant activities in the  future  from the comfort of your own place!  Now is the time!!

A new year is just around the corner.  It gives a fresh start and a new chapter in life waiting to be written. There are new questions to be asked, embraced, and loved.  There are new answers to be discovered.

January is the month to dream and look forward to the year ahead and the journey we will experience.  We all make the new year's "resolutions" but only true dreams give birth to change.  So instead of the standard resolutions, this year write down your most private aspirations.  These are longings that have been kept tucked away until the time was right.  Well, now is the time!  We only live once, but once is enough, if we follow our dreams.

It does no good to look at life in a rearview mirror and wish that things had gone differently.  This past year was a very hard one for many, either economically, physically, or emotionally.  Scarcely anyone has been left untouched by the downturn in the economy.  But there is always hope which will give the strength, wisdom and creativity needed to make dreams come true.

Time is the New Year's bountiful blessing:  365 bright new days and starlit evenings, 52 promising weeks, and 12 months of beautiful possibilities.   So let us welcome the New Year, full of things that have never been.

HAPPY NEW YEAR!!

Francis P. Church had no intention of composing a classic essay in inspirational literature in 1897 when he sat down to answer a little girl's question, by the name of Virginia O'Hanlon, who was 8 years old.  Her friends had told her there was no Santa Claus and when she questioned her father, he suggested that she write to the editors of the local newspaper because they were experts on everything.  So she wrote a letter, asking for the truth about whether or not there really is a Santa Claus.

Over a hundred Christmases have come and gone since then, but what is real and what is not has not changed.  Children of all ages have a deep desire to believe in a great, generous gift giver who rewards the good.  Christmas allows the child in each of us to be reborn every year, awakening a sense of joy and wonder that even 11 months of doubt, derision, or discouragement can't snuff out.  All that's required of us is that we believe.

What do we believe in?  Believe in whatever means the most to you at this moment.  That love makes it possible to believe in all things, especially miracles.  That this is the season of miracles.  That there is a miracle with your name on it.  That when you wish upon a star, grace steps in to bridge the gaps until your dreams come true.  That there is a Santa Claus and you have been very, very good this year.

Yes, there really is a Santa Claus.  He exists as certainly as love, generosity and devotion exist.  He exists in the childlike faith, poetry, romance and wonderment that can push aside the curtain of the unseen world and view the beauty and glory beyond.

May you believe in the magic and miracles of the season.  May your heart be filled with joy and wonder.   May you have a very Merry  Christmas!!

Many of us react to the annual "Christmas letters" as if they were fingernails on the blackboard of our brains.  But one of my oldest friends writes fabulous annual letters which I look forward to receiving.  

That is because it is a "real" letter.  Instead of being full of boasts and bragging, it fills me in on her family's tough times as well as on their achievements and happy times.  It may have been sent to 100 people or more, but it is a warm, witty, and authentic expression of my friend, herself, and it reads as if she has written it only to me.

With the age of technology and so many writing e-mail these days, the annual Christmas letter may not be as popular as it once was, but there are still some from my generation who are more comfortable writing on paper than to a computer.  Personally, I find it is still one of the pleasures of seasonal greetings in writing.  It helps me to keep in touch with those far away that I scarely hear from during the year, and it is more exciting than opening an "empty" Christmas card.  

For those who do send the Christmas letter, be sure it is not an "edited" version of the year in review or of your life.  Be honest about both successes and failures, and be sure not to sound boastful, but grateful for all blessings.  The recipients will then look forward to this Christmas card each year.   Otherwise, the Christmas letter may well end up as Christmas lining for one of the pet's cages!

More growth to the Davenport area ends the year on a positive note.  Just completed and open is the new three interconnecting roadways forming a partial alternative route for local traffic around the US 27-Interstate 4 (Exit 55) interchange, at Posner Park.

Ernie Caldwell Boulevard connects FDC Grove Road on the west side of US 27 to Pine Tree Trail on the east side of Posner Park and it includes the new single span bridge just completed crossing US 27.

Heller Brothers Boulevard links Home Run Boulevard and Ernie Caldwell Boulevard with US 27 at the Deer Creek Boulevard intersection.   Pine Tree Trail will provide a north-south link between Ernie Caldwell Boulevard, Posner Park and County Road 54, known as Ronald Reagen Parkway. 

This may all seem a bit confusing, but it is actually a very nicely done alternative around the very busy intersection of Exit 55 from I-4.   It has been completed with street lights and sidewalks, lending to a positive area for future growth in Posner Park.  Rumors are that new businesses there are "just around the corner."

Also new to the area is a car dealership promoting Chrysler, Dodge and Jeep, which will soon be open for business, with the Posner Park name at the top of the building.  Located just a mile from the newly completed bridge, it will be sure to bring additional traffic and interest to the area, and hopefully will spur additional commercial growth.

We seem to have turned the corner with the successful opening of Legoland in Winter Haven and new construction in Davenport.  We look forward to more growth in the new year and more jobs to the area!

It is hard to believe that December arrives tomorrow.   Another year is almost gone.  But the month of December brings its own gifts to us . . . . custom and traditions, ceremonies, and celebrations that all come to us wrapped up, not in tissue and ribbons, but in cherished memories.  This is the month that should not be stressful, but filled with joyful simplicities.

Spread holiday cheer throughout your entire home with seasonal decorations, which can be home made, and as inexpensive as cutting some evergreens, using candles, and displaying flowering plants.  Delicious food is another holiday gift:  indulge in the Christmas pudding, eggnog, cookies, fudge, and fruitcake, and forget about calories until January.

Get into the spirit by reading some seasonal stories yourself or to the  family and re-watch some of the best Christmas classic films, such as Jimmy Stewart's old time favorite, "It's A Wonderful Life."  The movies might be outdated, but the messages are not.

During this month of generosity, fulfill the Christmas dreams of a child who is not yours; share your blessings with a shelter for the homeless; get involved in a community project to help others who are struggling in this economy and have lost their homes.

December is full of gifts, but thankfulness and gratitude are two of the most important.   No matter what we are facing this holiday season, there are many blessings mixed in and lots of gifts we arleady have that money cannot buy.