SW FL Real Estate

In this market we must look at each area of the market to determine when and where the bottom
can be located.
This overall market is glutted with various types of listing problems in a large area. Let's consider the factors involved:
1) Bank owned properties - drive down prices as they are listed at "dump it" pricing
2) Foreclosure properties - drive down market prices with rock bottom pricing
3) short sales - similar to foreclosure pricing
These are a large sector of the inventory and are driving prices and appraisals down.
Now, consider the sub markets. This is important to understand. Lee and Collier counties are very large geographic areas. In Lee county, Cape and Lehigh are the primary areas of bank owned and foreclosures. These areas are driving the entire Lee county overall pricing.
Collier has a similiar situation in all of E. Collier county.
Smaller markets or sub markets on Marco Is., Sanibel and Ft. Myers Beach should not really
be in the equation. They are markets of their own. Are they affected? Sure. My point is,
don't lump them in w/ Cape, Lehigh and Golden Gate.

Ft. Myers is large enough that it can
be evaluated by zip code. Certain zip codes are and others are not or should not be lumped
into that same category when looking at the overall market structure.
The same scenario holds true for the market in Naples, Bonita and Estero. These are closer to finding their own bottom as properties are beginning to move at a better rate and the percentage of bank owned and foreclosed is much lower consequently not having the overriding affect of other areas. Irregardless of where the property is located, a rediculously low price accepted on a bank owned or foreclosed property will affect all property in the area because appraisers must use current sales of similar property in the process of appraisal.
Don't lose sight of the hard fact that banks enabled the irrational highs and now they
are causing the irrational lows.
Summary: The market "bottoms" as well as recovery time varies by smaller area or sub market.
Where are bottoms nearest? The barrier islands, Bonita, Estero and Naples.
That's what I think. What do you think?