Redington Shores Yacht Club On The Move!

We continue to talk about how quickly the market can change. A few months ago, there were distressed sales available in Harborview Grande in Clearwater Beach. Savvy Buyers who had sat on the fence for months realized the opportunity was NOW. The result? There is nothing available for sale in the complex and there is a waiting list of hungry buyers wishing they had moved quicker.

The other community we watch closely is Redington Shores Yacht & Tennis Club. As a matter of fact, we have a dedicated website for this community because of its uniqueness along the beaches of Tampa Bay. Built in 2007, this gated community combines beautiful waterfront condominiums with private homes. A clubhouse, lighted tennis courts, fitness center, private boat slips and waterfront pool & spa for each of the four condo buildings. Plus, right across the street is a beautiful stretch of white sandy beach!

Redington Shores Yacht & Tennis Club got caught right as the market turned downward. As the owners who had anxiously awaited the grand opening were closing on their condos, appraisals were coming in 15-20% higher than the price they had secured pre-construction. The delight felt by these new owners was short lived and over the past two and a half years they have watched their property slide in value by up to 50%! Of the 126 condos, 6 have fallen into the mid-$300K range as short sales of foreclosures. Lots have been foreclosed on while other homes were still under construction.

So is the value still there? We believe it. As a result of the market downturn, builders and developers abandoned new construction projects quickly. For that reason, there is a major shortage of new construction and because of that projects finished in 2006 and 2007 ARE the new construction. In the last three weeks, we have seen the last of those distressed sales go under contract. The deal that we particularly liked was a penthouse unit listed at $495,000... a full $100,000 more than those distressed sales. It went under contract Monday.

What does this mean to current owners and buyers wanting to get into the community??? The $300's and $400's are gone. At this time, there are 7 of the 2000 sq ft condos and 2 of the 3000 sq ft condos available for sale. The lowest prices? In Building 3, #206 for $529,000 and #304 for $535,000. WHY would a buyer go after those two knowing others had sold for less? Because after those two, the next least expensive is #401 in Building 1 for $599,000! Of the other six on the market, prices range from $600,000 to $829,000.

In advising a Buyer right now who loves the community, I would remind them that these $500's are a full $300,000 less that what they were appraised for in 2007. In each of those situations, the sellers are losing money. The community is still the most unique on the beaches and the construction is new with the high ceilings and stricter building codes. What do you think?