We've all been reading that the Real Estate market is crashing or has crashed. I'm here to tell you it ain't so!

The last couple of years has seen exceptional appreciation in residential real estate. Florida was just one of the many states that benefited from this upturn. Any financial expert will tell you that the price of any commodity or product will ebb and flow through up and down cycles. Huge increases in retail value are not sustainable, and the law of supply and demand will always even the waters.

Nearly every state in the union is experiencing some flattening or price reductions in residential real estate and Florida is no exception. Exactly why the whole country began experiencing a pullback is somewhat of a mystery, but here are a few of our observations about the Florida real estate market:

1. Many prospective buyers of Sarasota real estate have had to delay purchases because their existing homes in other states are not selling.

"FEATURED PROPERTY" Pristine 13 Unspoiled Acres in a lovely, deed restricted, equestrian neighborhood. Palmetto scrub interspersed with oak, pine and shared wetlands. A creek crosses the rear corner of the acreage. JUST REDUCED! $350,000

2. Four or five years ago the Gulf Coast had a shortage of rental units. Builders rushed in to fill the need, investors came in behind and gobbled up new construction...until the investors couldn't find tenants. when that happend many investors rushed to sell and take a profit. That worked for a short time and then the inventory of resale homes grew larger than the list of prospective buyers. Remember some of these buyers are still waiting to sell their northern homes.

3. A couple of years of Hurricanes on the front page has made many take a wait and see attitude.

What this all means? Well, it will take a few months to a year to clear the excess inventory of homes for sale. The bulk of which are the result of investors departing the Sarasota market. During this time period prices will pull back slightly, But you must remember for more that two years home prices were increasing 25% - 30% or more per year. Many home sellers still have the mind set that their homes are appreciating at that same rate and as a result are pricing their homes accordingly. We are already seeing some adjustments as sales have slowed. Notice I said slowed, not stopped. Sales are down 30% year over year. Significant, but not a standstill. You might be interested to know that this year that 330 men and women will turn 60 every day. Where do you think they will go in retirement? Many will come to the Gulf Coast. The lifestyle is unmatched. And, the Baby-Boomers are just starting to hatch.

My advice, if you're considering a home in the Sarasota area start shopping now. Your choices are plentiful . Builders are offering great prices and incentives. Sellers are coming around. You'll get your choice and best of all you'll be here to enjoy this spectacular lifestyle.