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One new listing in June – 8823 (1,595sf) is active at $479,000. There was one sale in June – 9639 (1,698sf) raised $460,000. There are no listings pending closure. The market for Vivante is in a funk and there are a couple of good reasons. Firstly, we have been waiting for some reconstruction to start and now we are beginning to see that happen. Several buildings have had their roof tiles removed and that team is moving along to other buildings. Drying in and drip edge work is next, followed by city inspections and then the metal arrives – great news – we are on the way. Following the roofs, window sealing, then lanai repairs. It’s still going to take time, but as that goes by, Vivante will shine. Secondly, we are in the Summer months which, as we all know, are slow; sellers (I don’t know how many) may be waiting for a better time to sell and buyers are sitting on their cash or waiting for rates to fall. Interestingly, sellers also seem to be waiting for rates to fall – according to a recent article, 92% of today’s mortgages are funded at under 6%, 82% under 5%, 62% under 4% and 23% are under 3% – so sellers are looking at substantially higher monthly payments if they move now and borrow anew. Elliot Eisenberg (the “Bowtie Economist”) suggests that as inflation continues to fall (from 4% to 3% over the next year) the FOMC needs to do nothing to maintain a restrictive position – a further 1% fall in inflation equates to four 25 basis point increases. That tells me that we’ll see activity recover from the doldrums soon, especially when Vivante comes out of the ICU. Happy 4th of July!
