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Realtors, Developers Express Housing Market Optimism

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By MICHAEL D. BATES, Hernando Today

Published: December 24, 2007

BROOKSVILLE - Drive through any subdivision and the sea of "for sale" signs swims across your vision like a row of landlocked vessels.

If you're one of those homeowners trying to haul anchor and set sail, you might be wondering what you have to do to get that home out of dry dock.

Builders and Realtors say it's still possible to sell homes in a tough market - as long as sellers are willing to make concessions and get out of the "make a killing" mind-set.

It boils down to two things: curb appeal and lower prices.

Today's homeowners have to make their home stand out from the rest and scream, "Buy me!"

They have to have a nicely manicured lawn, a new paint job and an inviting front view to entice buyers to the front door. First impressions are more vital than ever before.

That might mean spending money to upgrade the home.

The other thing homeowners have to do is bite the bullet and lower the price.

It could make the difference in getting a pending contract and waiting even longer for a buyer.

Maybe two years ago, you could inflate the asking price for the house.

Not anymore.

If you're willing to take less, you should be able to sell.

In real estate terms, it's called "realistic pricing."

"There's no reason why a nicely prepared home is not going to sell," said Harry Willett, president of the Hernando County Association of Realtors. "We have a better market than, let's say Tampa, because those homes are really overpriced."

And what the price was even six months ago may not be where that price needs to be today, local real estate agent Mary Ann DeWitt said.

The twin-pronged attack to sell homes seems to be working for many, if sales are any indication.

"We're considerably busier right now than we were 60 days ago," DeWitt said. "I have a very optimistic outlook for the next year. Every month that passes, we're another month away from the bottom."

DeWitt said uncertainty about next year's elections is prompting some to delay home purchases. They tend to wait to see how things "shake out" before investing their money, she said.

On the building side, there is also a ray of hope.

Craig Gallagher, president of New Port Richey-based Gallagher Family Homes, said he is forging ahead with his 440-acre residential-equestrian community that straddles County Line Road, about five miles east of U.S. 19 on the Pasco side.

Bella Terra will have 120 lots, with homes ranging from the $140,000s to more than $1 million.

Gallagher, who sells homes in Pasco and Hernando County, said the Tampa area shows strong new-job creation, which tends to drive new homeowners into the area.

Leveling Off

Local Realtor and developer Gary Schraut agrees that although the housing numbers are not good, "they're not as bad as people would want you to believe."

People are comparing the current market with that of 2003-05, when the investor-fueled real estate boom was at full steam, he said.

Home prices were artificially driven up by the wild speculation, and it is unfair to use those years as a yardstick and say that the home market is a disaster, he said.
Hernando County is reaching the point where it was before the boom hit.

"We've done the market correction, and we're waiting for it to level off," Schraut said.

When that happens is anybody's guess.

"We're seeing a turnaround and hopefully we're going to be stabilizing," he said. "I think all the speculators are gone. The homes we're selling now are people looking to put a roof over their family's head.

"Some investors are trying to pick up foreclosures, but there aren't that many of them because they have no one to flip it too fast," he said, referring to quick resales.

With the proper technique, homes will sell, Schraut said.

"It's not that they can't sell them, it's just taking longer and it takes more marketing and more realistic pricing," he said. "You can't put a real estate sign out front and say, 'Buy me,' at any price. That is over now and we're back to a real market where it takes real negotiating skills."

An Anomaly

Even Hernando County building director Grant Tolbert acknowledges there are red-hot deals on homes for people who are in a position to buy them.

"From what I understand, real estate - properly priced - will sell, because there are still people looking to buy a house," he said.

Dudley Hampton, president of the Hernando Builders Association, agreed that people cannot judge the housing market by 2005's standards because "that was an anomaly year."

Despite the gloom and doom, Hernando County still boasts some of the lowest prices in the Tampa Bay metropolitan area, he said.

"People who can afford to buy a home can buy one and get it for an excellent price and get good value for their dollar," he said.

To get people to buy, some are offering to pay closing costs or even the first year's mortgage payments, he said.

Interest rates remain low -around 6 percent - and the Fed has indicated it doesn't plan on raising them anytime soon, Hampton said.

Hampton thinks much of the negativity comes from so-called analysts who continue to preach grim housing news.

"A lot of that has to with the pundits on TV who I personally feel don't know the difference between a hammer and a hat rack," he said. "Right now the sexy thing to do is preach doom and gloom about the housing market."

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