Looking for a home in South Florida? Now is the time, the window will begin closing by June of 2009. This is the forecast of many economists. Florida was one of the first and hardest hit to experience the decline in home sales and pricing.
Florida still has all the same wonderful things to offer, but now the prices are as much as 50% off of the highs and the smart money has already begun to buy. There are people coming into the market that think they can offer 20-50% less on bank owned and short sales, only to find they are cut off at the knees when savvy investors are scooping up good properties with multiple offers and they wind up selling at the asking price.
Banks and financial institutions are not giving properties away. They are doing their homework and setting asking prices 10-15% below today’s already bargain market prices. At the rate these homes that are priced well are being bought up, the window is getting ready to gradually close.
The prices have adjusted to levels that have greatly increased the size of the buyer’s pool, the interest rates are low further increasing affordability, and taxes have decreased with values. Put that formula with what we have always had in Florida, great weather, lower cost of living and no state income tax, this is becoming a desirable place to live again.
Remember though, the sheep are still pessimistic, but that s not going to last forever, and the real estate market needs to be the first to recover to improve our economy. The government knows that, and they are already taking steps to see to it that it happens. Last month was one of the first recent months that inventory nationally, actually decreased.
The real estate market is very similar to the stock market except the movement is not as fast. But one thing still holds true, as the expression is in the stock market; “bulls make money, bears make money, and pigs get slaughtered.” Keep that in mind when you make an offer on a property. You can be bearish and just wait, you can be a bull and jump in as the smart money is doing and be aggressive and take advantage before the window closes, or be a pig and make ridiculous offers and no one will deal with you, brokers and sellers alike, and you will buy nothing therefore getting slaughtered.
There are thousands of real estate millionaire optimists that have become such on the inactions of real estate pessimists.