While new home sales dropped by nearly 17% in February and reached records lows not seen since the government tracked the data in 1953 as CNN - Money reported today this could be a good time to buy. In talking about the best time to buy stocks investing guru and one of the richest people in the world Warren Buffett said be fearful when others are greedy and be greedy when others are fearful. Applied to the housing market this could be a great time to buy given the market conditions and price drops.
The South Florida real estate market is still in difficult position with an oversupply, a bad economy and other problems but as Josie Gulliksen of an AOL Real Estate Blog reports the time to buy again may be nearer than you think. "It's still a good investment, not as a short-term flip, but more long-term," says Ron Peltier, chairman and chief executive of Minneapolis-based HomeServices of America, Inc., the second largest homeownership-service provider in the U.S. "For people who have bought homes to live in, that home is still a very solid investment, as well as a tax break and, most important of all, a place to call home."
From 2000 to 2005, South Florida Housing unit sales were going up by double digits annually, as was appreciation. "During the overheated market, there was too much flipping going on," Peltier told HousingWatch. "Consumers were buying [homes] as an investment, so demand became far in excess of supply. As a consequence, developers ratcheted up the activity way beyond their levels to meet the insatiable demand."
From 2000 to 2005, South Florida Housing unit sales were going up by double digits annually, as was appreciation. "During the overheated market, there was too much flipping going on," Peltier told HousingWatch. "Consumers were buying [homes] as an investment, so demand became far in excess of supply. As a consequence, developers ratcheted up the activity way beyond their levels to meet the insatiable demand."
Some prices have been corrected in South Florida as much as 50 percent providing an attractive entry point. Further incentive for buyers is interest rates on 30-year fixed-rate loans at about 4.5 percent, a level that Peltier says we are never likely to see again in our lifetime.
South Florida is a great place to live and has excellent weather and current buyers will receive excellent prices compared to values of recent years along with very attractive financing and with more tenants and an improving econmy rents may go up so it could be a good time to buy Florida real estate now.
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Posted by: Diana Pittarelli | March 29, 2011 at 09:55 PM