Patience is The Key For South Florida Real Estate Survival
Monday, February 13 2006 @ 08:15 PM UTC
Contributed by: jron
With South Florida's real estate on the downward spiral, one can't help but ask "What does it mean now?", well for home hunters this year it just means that they'll be on a "buyer's market", expect home prices to level, although increase in streaks of prices is still expected.
For homesellers, experts' tip is be more patient this year than you were a couple of years back, because despite of the forecast that the market's boom has ended, there are still chance that homesellers will be fine. Understanding the forecast on the market is really important.
One might have to analyze how the nationwide housing boom pans out, analyzing most specially how it turns out for South Florida.
It has been analyzed that key players on the market boom will be gone soon, investors and speculators can be the new group of buyers, that one must have a concern on.
Real estate analyst Lew Goodkin estimates that at least 60 percent of new condos were bought by investors who seeks for single-family homes, that is when the boom is at its peak.
Record lows for mortgage rates and interest rates were posted over the past 5 years, that just means that more people can purchase homes, even those who weren't going to afford top buy a home purchased anyway, because of the loans and mortgages that requires buyers to only pay interest at first.
According to Freddie Mac "In 2005, 30 percent of sales above about $360,000 in the Miami area were with interest-only loans, slightly more than the national average. And 15 percent came with mortgages where full interest payments were optional at first,"
Ronald A. Shuffield, real estate brokerage Esslinger Wooten Maxwell president says "Generally, we only have about 18 to 20 miles of dry land from the beach to the Everglades," he adds that "We are bumping up against the edges in each county."
The market is said to be cooling off but not on a case that it'll fall down or collapse, why? because of the continues stream that people coming to the area, given that South Florida's reputation of leisure and business, people still comes to the area to live their lives in there. According to Florida's Office of Economic and Demographic Research, there are really a lot people who move to South Florida everyday, about 150 people a day.
Chief executive of home builder Levitt and BankAtlantic, Alan Levan predicts that less 10 percent will be the estimated increase of home prices saying that ''I personally consider it to be almost a good thing because it will bring back some reasonableness to the market,''