by Mike Sharkey
Staff Writer
The 30th Realtor Builder Tradeshow wasn’t the biggest - that was likely 6-8 years ago when realtors were selling homes faster than developers could build them. But, last month’s event at the University Center on the campus of the University of North Florida was a sellout - over 500 tickets and 66 booths. The enthusiasm factor is what can’t be measured. You simply don’t catch those folks sitting around crying in their beers.
“The event was fantastic,” said Franchesca Swierz of Homes and Land Magazine, a co-chair of the event. “The booths were sold out and we had great energy and great give-a-ways. Our industry is alive and well in Northeast Florida and the Tradeshow showed it!”
The theme reflected everyone’s attitude: ask a Realtor or developer or lender and their stories are eerily similar these days. They all truly believe the worst has come and gone and the industry will slowly recover, but with one major difference: it will recover smartly.
“It’s picking up and it’s on the rebound,” said Donald Ster, home mortgage consultant for Wells Fargo Home Mortgage, the other co-chair. “It has bottomed out and there are some great incentives from the government.”
While Ster said mortgages are still readily available through the Federal Housing Administration - and people are working hard to take advantage of the $8,000 tax credit first-time home-buyers will get through Nov. 30 - other mortgages are tougher to come by. The days of getting a loan for more than the value of the home with virtually nothing down and little-to-no proof of valid income are gone for good.
Meeting all of the criteria for a mortgage is one thing. Finding a home and wading through the red tape is another. Just ask Selby Kaiser of The Legends of Real Estate. She and her twin Linda McMorrow have been selling homes in the Jacksonville area for decades. Kaiser says things are still slow and that’s due primarily to the amount of time it now takes to get from an offer on a home to closing day.
“We are meeting new challenges every day,” said Kaiser. “We are working with the lenders, but these new regulations seem to be coming from out of left field. It takes so long to hear back from anyone whether it’s a short sale or a long sale.”
Kaiser said she understands the caution being shown by the lenders. However, she believes an “equilibrium” has to be found to help accelerate the recovery of the real estate industry not just in Northeast Florida, but nationwide. Kaiser also said the high-end market - homes for sale for $750,000 or more - is practically nonexistent.
Sherry Davidson of Davidson Realty is a major player in the development of that area. Davidson says the industry turned the corner earlier this year.
“Our activity has picked up dramatically since April. It was like someone flipped the switch,” she said. “I think everybody feels like the economy is improving and the stock market is improving. Overall, I think consumer confidence is rising. Our traffic is up, our calls are up and our contracts are up.”
Those contracts are still taking a long time. Davidson said sales often get to the third-buyer stage before a closing can occur.
“The process is so long,” said Davidson, explaining that often the first one or two potential buyers get frustrated with the process and walk away.
Still, Davidson’s market is relatively steady.
“The good news is in World Golf Village, we didn’t sell most of our homes during the peak years of 2005, 2006 and 2007. We were already established,” she said.