Bella Terra & Village Walk are Ninjas in Recovery
First of all, we’re not all going to die. Well eventually we will die, but probably not from exposure to real estate. Second, this too shall pass.
The turning points in the real estate recovery are s-l-o-w and when they happen, go by with little fanfare.
It’s been a rough market for some time but there are particular neighborhoods that were hit especially hard. There were a hand full of communities that were built or contracted at just about the time the switch was flipped and the market headed south. To say that some were hit hard would be an understatement.
In general, most consumers realize that there were real estate speculators and investors in the market. What most consumers don’t realize is that those speculators didn’t just buy a home and roll the dice; they bought multiple properties, even whole buildings. So a perfect storm of excessive real estate, purchased by speculators for imaginary home owners hit the valuation ceiling and a blood bath began.
Distressed real estate piled up for sale and the inventory loads swelled to years, sometimes decades. More property came on the market than was selling and for a brief period of time, nobody was buying.
Here’s the thing about the real estate market, it’s cyclical and ever changing. Eventually no matter how ugly it got, it wouldn’t last. The inventory would sell off either by price adjustment, short sale or foreclosure and the neighborhood would stabilize. That’s been the case with many of the communities mired in the thickest of market struggles.
Dare I mention a community by name? It’s been a while since I’ve enjoyed a complimentary full page “I hate Chris” tantrum ad in the paper so I think I’d roll the dice. Its good news and possibly even great news so what’s not to love?
Existing resale home inventory has been reduced from several years to only several months in both Village Walk of Bonita Springs and Bella Terra of Estero. They’re two communities that had, at the onset of their construction, more than their fair share of investors and plenty of growing pains. They’ve actually worked through the majority of their tribulations, put them into the past and have become the poster children for market recovery.
Consider this; a balanced real estate market is approximately six months of inventory. With approximately ten months of inventory in each of the communities, they’re officially teetering on the edge of being a healthy, balanced market as a whole. That’s not even taking into account the hefty number of pending sales that will shave months off of the inventory as they close sale.
The majority of the product offered in both of the communities is in the faster paced $400,000 and under market which accounts for about seventy-four percent of all sales in the MLS in the last thirty days.
Not every community is as fortunate as Bella Terra and Village Walk. If you’re wondering “What about my real estate?” and you didn’t know the swiftest moving price point or the absorption rate for your neighborhood you’ve now got some important questions to ask your real estate agent.
And no, I have no listings to peddle or investment interests in either community. It’s simply good news, deal with it.
Real Life in Bonita Springs is a project by Chris Griffith dedicated to writing useful blog posts for consumers about the Bonita Springs, Florida area. Find out what it is really like to live in Bonita Springs, Florida by reading about our fair city. You’ll get the latest in local real estate information, Bonita Springs real estate market reports and a little bit of humor. If you have topic ideas, feel free to request a story about the idea, after all, this site is just for you.
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