by M. Anthony Carr
Prices are down 39 percent in Fort Myers, Florida fueling an amazing surge in sales of more than 125 percent in September. Following years of investor-driven profit, prices have been correcting at an alarming rate, at least to those who had funny-money loans. But to buyers who were priced out because of speculating by those seeking quick profits, the price corrections have brought them back into the market.
"Teachers, police officers and others who were priced out of the market during the feeding frenzy of 2006 are buying homes today", says Suzanne Sherer, president-elect of Realtor Association of Greater
Fort Myers and the Beach, Inc. "Anytime a market is driven solely by investors, it can’t sustain itself."
Interestingly the county surrounding the city, Lee County, is in the midst of a shrinking economy with unemployment at more than 9 percent -- nearly double from last year at the same time. But prices have dropped so low that residents can’t help themselves to write contracts at a dizzying pace.
The drop in new home development is another factor affecting the amazing growth in resale units so far this year. New home inventory in Ft. Myers is also dropping precipitously. Building permits for single family homes have dropped 71 percent in the latest reporting period. Meanwhile, condominium construction permits are down 62 percent.
Published: November 14, 2008
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Mr. Carr has covered real estate since 1989. He is the author of 