Sorry for not posting recently, been rather busy with a number of projects that have taken up a lot of my time. One of these is that we’ve been surveying developments to obtain information on how sales went last year and what their inventory is for this year. We have nearly completed gathering the information and will begin analyzing it next week, so that we can prepare a report and post it here.
The market continues to be very difficult for real estate developers, although real estate offices for re-sales are remaining active. Developments are having to be very creative with their marketing, with the most successful one’s resorting to “fly-buy” programs. This involves making presentations in the USA or Canada and then flying interested people down for further presentations and an opportunity to see projects firsthand. It involves a lot of time and work and they are difficult to organize. And they are costly. But they seem to be working for the larger developments that can put in the time and handle the cost.
Preliminary news regarding developments is that inventory has been reduced considerably, and that is certainly good news. This is through developments that decided just not to move forward from initial pre-sales, developments that have now sold out, to some that have taken on a hotel component and others that have scaled down the development or are releasing it in phases. And, some inventory has been reduced by sales! We expect inventory levels to be less than half of what they were going into 2008, which was more than 8,000 units. The big factor here is that in 2008 we included all product available in a development, whether is was going to be released for that year or not. This makes up the biggest difference.
More on this shortly…