Navarre market will improve
BY ANGELA CAMPBELL Executive Director, NABOR news@gulfbreezenews.com

There is an old saying - "Opportunities are never missed. Someone will take the one you miss." The Wall Street Journal recently reported that intrepid home shoppers are venturing back into some of the nation's hardesthit real-estate markets, convinced they can cherry-pick good deals amid broad price declines echoing the sentiment of the Navarre Area Board of Realtors that today's housing market might just be the opportunity you should examine for yourself rather than relying on some of the previously seen negative media headlines.

Affluent baby boomers eager to lock in low interest rates on retirement homes, high-end shoppers who had been waiting for prices to soften and serial investors determined not to miss the boat on a perceived opportunity are among these bargain hunters.

While sales of existing homes are off from their high, nationally, last year was still the fifth best year on record for existing-home sales. As for prices, the national median existing-home price remains within 2 percent of the all-time high set in 2006.

The biggest enemies of today's housing market and the economy in general are pessimism and uncertainty. Statistics clearly suggest a sizable pent-up demand in the marketplace. Yet home sales have remained soft. Why? Could it be lack of buyer confidence?

This lack of buyer confidence not only impacts homeowners and the housing industry, but could easily spread to the economy. Any further weakening in the housing market and its related housing wealth impact could slow the economy into a no growth zone.

So what can we do to bolster confidence? Let's look at the facts. Over the past two years:

Average wages have risen by 8 percent.

4.3 million jobs have been added.

Total household net worth (assets minus liability) was more than $6 trillion higher in 2007 than 2005 (despite some losses in housing equity.)

Nearly 2 million new households were formed.

Nationally, this all suggests that there are many more people with jobs at higher wages and with higher wealth accumulation better positioned to be homeowners. People continue to move to Florida. It's estimated that 900 people move here every day. Based on recent trends, Stan Smith, director of UF Bureau of Economic and Business Research, said he expects Florida to add about 300,000 residents a year during the next two to three years unless there is a recession. Locally we can expect a growth in the demand for housing associated with the base realignment and closure program.

With Navarre's proximity to both air bases and the transient nature of the military, the demand for Navarre properties will be stronger than ever. The huge influx of personnel will need somewhere to either buy or rent. Multi national companies are also beginning to recognize Navarre's potential. With recent beach restoration and post hurricane repairs, Navarre's tourist industry has again begun to flourish. Now more than ever, there is enormous potential for local property values to increase.

However, the rising inventory of homes on the market and slower sales indicate that some potential buyers are uncertain and may be sitting on the fence.

A look at today's market fundamentals makes a very good case for buying a home if your life and family conditions warrant it.

The Navarre Area Board of Realtors encourages all fence-sitters to get into the market and look around, we think you will be pleasantly surprised at what you find.

There are many low-cost, sound mortgage products today - from prime conforming loans to those insured by the Federal Housing Administration. The economic stimulus package recently signed into law by the president will also help expand the availability of affordable and safer home financing options.

The package increases the loan limits on FHA-insured loans, as well as those purchased by Fannie Mae and Freddie Mac. Higher FHA loan limits will help an additional 138,000 Americans purchase homes and allow nearly 200,000 owners to refinance and potentially keep their home.

In addition, the national Association of Realtors believes that increasing the loan limits for Fannie Mae and Freddie Mac will help as many as 500,000 people refinance their loans and could help reduce foreclosures by as much as 210,000. On top of that, more than 300,000 additional home sales could be generated.

In the end, these higher loan limits alone can be expected to reduce housing inventories and strengthen home prices by two to three percentage points.

In the long term, real estate has proven to be a positive, appreciating investment, consistently out pacing the stock market or traditional savings accounts. On average, the value of a home nearly doubles every 10 years. In fact, 60 percent of the average homeowner's wealth is in their home's equity. According to the Department of Housing and Urban Development, the average homeowner has 36 times more wealth than the average renter. Homeownership remains the key to climbing the economic ladder, it should be approached as a long-term investment, providing both equity accumulation and tax benefits over time.

Navarre is on the cusp of an exciting era of positive controlled growth. Prices are now sustainable and indications show that the market has or is close to bottoming out. Investors are proven to be returning to the market. Owning a home is now more than just the proverbial "American Dream" - it is an investment in your family's future.

Purchasing a property is probably the single most involved transaction a person will make throughout their lifetime, it makes sense to use a professional who understands the complexities of the timing and range of tasks involved. To locate a member of the Navarre Area Board of Realtors who specializes in the Navarre area, visit www.mynavarrebeach.com

So join the fight against irrational pessimism - take a look at your local housing market and think, just think, of the possibilities.