Knowledge is the Map to Greater Wealth,
Real Estate is the Easiest Path.
Leveraging through Financing will take you on that Path the Quickest!
Investing In Real Estate
Market Conditions
Oh, if anyone really knew what the Current Market is they could make a mint.
The fact that you are thinking of investing in Real Estate suggest that you have been trying to keep up with all the news of what our Real Estate Market is doing. Unfortunately everyone has a different opinion about it; ranging from total collapse to just a temporary slow down of demand. A general agreement is that the conditions in each region will be affected by the economy in that region. Thankfully the economy of South Florida, especially Eastern Fort Lauderdale and the Beach Areas are in great shape and looking to improve. So what is the real estate market going to do. To help you decide for yourself we would like to list a few points to think about.
The First and Foremost thing to look at is the Demand factor. South Florida is one of the few Sub Tropical environments in the US. People from all over the nation and the world want to live or play here. There are only scatterings of buildable raw land left between the Ocean and the Everglades. As stated earlier, the economy is in great shape. Because of these factors there will always be a high demand even though at times it might appear as if it has declined. An example of the appearance of decline is currently showing itself. The number of sales has been much lower of late but is it because there is low demand or is it a watch and see period. This is discussed further later on.
Second is the Supply side. During the recent boom years many sellers were waiting to see just how high prices would get. Many were holding onto properties in the hopes of phenomenal profits and many were getting them. As much as an investor would like to be able to make these kinds of profits right on, the market would not be able to sustain itself. As usual, several factors came together to bring about the change. The first was Wilma which slowed the market while the area recovered. Then the interest rates started rising above record setting lows. While these two each had a detrimental effect, the biggest impact came with the very large outcry of “The Bubble Bursting” fears. Slowly more and more sellers put their property on the market just in case the prices have topped out. At first sellers would continue the method of listing at a price which was 5%-15% above what other properties had recently sold for but the practice was no longer working. Now they are slowly dropping list prices closer to the actual market value. So far there is no evidence of widespread actual sales prices dropping.
Third is putting it all together. There seems to be a wait and see attitude all around. The number of people looking is still strong. The general opinion is that they are waiting to see two things, 1. If sellers will panic and drop prices and 2. If interest rates will continue to rise. So far there has not been a wholesale dropping of sales prices. Nobody knows exactly what the Fed will do but most reports indicate that they may begin to hold rates as they are.
Our Opinion of what will happen: Barring any unforeseen major happenings, the buyers will slowly start increasing the number of sales. As the Supply gets back to normal, prices will start rising at a reasonable appreciation rate. On the other hand if sellers were to panic, of course, buyers will start to grab the better priced properties which could very well have the effect of frenzy buying - bringing the prices up quicker. Either way there are just too many people from our country and around the world who want to live and play here so there is little chance of prices dropping in a drastic fashion short of a major regional, national or worldwide catastrophe. Waiting to buy, hoping for dropping prices just means that you will have to come up with more when you do decide to get into real estate.
Hope this helps; now on to Strategy
Call us at:
954-566-3225
Specific
Questions
Use this link for response by email
I'm Ready
to Purchase
Fill out the Contact form with as much Info as you can.