These days, everybody's talking about the economy, and its impact on real estate values.  Well, the truth is, the news is not good.  Real estate sales are down, and owners are often getting less than they hoped for when they sell their homes.  In a significant number of cases, properties are even being sold for substantially less than the owners paid when they originally purchased their properties.  The good news is that, at least within Spanish Wells, this seems to be the case only for properties which were purchased by their current owners since 2004.  I am not saying that homeowners who purchased prior to 2004 are walking away with a bundle of cash in their pockets. But, at least there have been NO sales in the year 2008 where Spanish Wells properties purchased pre-2004 have sold for less than what Lee County tax records indicates as being the original purchase price. 

It seems quite obvious now that the real estate "highs" that we experienced in 2004 and 2005 are now a phenomenon which will fill the pages of economic history books,  Many say the bubble has burst, and that we'll never see real estate values back to where they were at the end of 2005.  A few optimists believe that once we get Wall Street straightened out, the market will rebound.  Some even believe this will happen in the coming season. I wish I could be so certain, but then, I don't think I stand alone when it comes to being a little shy about making an predictions for the year ahead.  But the reality is, none of us have a crystal ball, and none of us really knows what will happen.  On this page, I am going to attempt to relay some information specific to the housing market in Spanish Wells, that I don't think you'll find elsewhere.  I have attempted to analyze the fluctuations within the community, and want to share the results with my friends and neighbors.

Let's start with properties which are currently available for sale.  On October 1st, 2008 there were 104 properties shown in the Sunshine MLS as active listings within the communities that make up Spanish Wells.   I further analyzed the data, and found that over 60% of available properties were last purchased since 2004. It is also interesting to note that 23 of the properties last purchased since 2004 are currently priced below what the current owners paid for them!  (See Chart below) 

Of the 104 properties on the market October 1st, 2008, 42 were Marbella properties.  14 were Las Brisas condos and coachhomes,  5 Golf Condos, 6 Lake Club Villas, and 37 Single Family Homes in Spanish Wells Units 1, 2 and 3.

When we look at Year to Date Closings shown in Sunshine MLS as of October 1st, 2008, we see that there were a total of 35.  Of this number, 20 were sales of properties acquired by the previous owners since 2004,  In other words, 57.1% of all the sales year to date in Spanish Wells were sold by owners who had only recently purchased them!  (See Chart below)

You may note that 15 of the 20 resale properties originally purchased since 2004 actually sold for less than their original purchase prices.  Please note that Lee County records include some sales which are note reported in Sunshine MLS.  This could be a result of new product that has closed, or sales that did not involve a Realtor.  You can view the details, including address, sale date, and sale price for all year to date 2008 sales by clicking here.

As we further study the information available to us, we've made the following observations:

• We have experienced a significant market adjustment since the latter part of 2005, when housing prices within our community and throughout the area peaked.

• If you are a Spanish Wells homeowner that has purchased you property since 2003, there is a reasonable chance that you will see some loss of your initial investment, if you should need or decide to sell your property in the coming season.

• If you purchased your Spanish Wells residence prior to 2004, it is likely that you will see some gain on your initial investment, should you need or decide to sell during the coming season.  However, do not expect to sell for what your neighbors sold for two or three years ago, as it simply is not going to happen!

• Since insurance on properties built before about 2000 is difficult if not impossible to obtain, owners who need or want to sell these properties will have to offer other competitive advantages to make their properties more attractive to the few buyers who may be looking.

• Based on today's numbers, there is roughly a three year supply of available properties currently for sale in Spanish Wells.  Unless market conditions change dramatically in the coming months, only competitively priced properties are likely to sell in the coming season.

• Prices continue to drop on many listed properties.  As long as this continues to be the trend, what few buyers do exist are likely to test the waters with "lowball" offers, in the hopes of making a great buy.

•  Unless you absolutely NEED to sell your Spanish Wells property, you may be better off holding onto your property another year or so, until we begin to see some market recovery.

• If you are looking to purchase a property in Spanish Wells, you are likely to pick up on some great opportunities in the season ahead, as prices continue to drop, especially if you have cash to invest.

• Mortgage money is becoming increasingly difficult to come by, with all the subprime mortgage problems still at the forefront of the news.  This created problems for both buyers, who need to borrow to make their purchase possible, and for sellers who may get excited about an offer, only to see it fade when the buyers is unable to attain the necessary financing. 

• Real estate in Spanish Wells is and always has been a good investment... it's a great community, offering many opportunities for fun in the sun and a relaxed lifestyle.  There is no reason to believe that investing in Spanish Wells won't continue to be a wise long term investment.  Just don't plan to get in and get out too quickly, as that is when your costs outpace your anticipated appreciation, and you ultimately lose.

I'd love to talk to you regarding any of your upcoming real estate/investment needs!  Whether you're thinking of selling, or considering a purchase, why not let me counsel you, and assist you in making wise decisions.  I will never pressure you to make a decision which is not in your best interests, and I can arm you with all the facts and figures you need to know what will work best in your situation.  If you'd like to be placed on my mailing list to receive regular market updates, CLICK HERE. 

This Website has been designed and maintained by Spanish Wells resident

Marti Timple ~ John R. Wood Inc., REALTORS ~  (239) 405-1608

Email me at: TheTimples@InsideSpanishWells.com