So is this really the year to make that move up or purchase for the 1st time? I know, we have heard this each of the last 3 years as the market has continued to slide. After all a broken clock is right twice daily, so maybe the clock will be right after this :-)
There are always two sides to this kind of subject. I can only hope that to those out there do not put off their purchase because they think rates will stay low or they think home prices will keep falling. Now is the time to take advantage of a home in the area you want to live in, on the street you want the home site you want. Real Estate is a long term investment and to be able to buy a home at price levels not seen in years, in some areas prices are 50-60% below the peak price. Couple that with super low rates plus tax credits makes this the chance we may not see for a very very long time.
If we dig deeper than just emotions we can find some strong facts that would support a very favorable time for those looking to buy a home. The slow down of home building due to all the short sales and foreclosures have forced home builders to become much more lean in order to compete with the short sales and bank owned properties. New Home Builders are able to make some really good deals right now, this can be a great time to get a home with Lot's of upgrades and the energy efficiency that many other homes do not have.
In parts of Florida some areas the home builders our at prices below where they were before the boom started in 2002-2003. There are home builders that offer homes starting at $99,000 complete with homesite. These are fantastic deals for FIRST TIME BUYER that can have a payment for under $800.
For the higher price homes there are also some really good deals, there are many homes that were over $1 million now selling for close to $500,000 due to the overwhelming supply we had caused from the easy lending back up to 2006. Once again the home builders have been virtually shut down for the last 3 years and since the supply has come down along with prices. The home builders are offering huge discounts in this price category and even in some cases you can build a new home for less than what a resale would go for. This type of situation is what it will take to re balance the markets again. in 2001-2004 you were able to build new for less, thus the influx of new home buyers building and then flipping at higher prices.
If your clients might be in the market for a new home In Central Florida, please send a message and I will send you some information and help in anyway possible. LET'S SELL HOMES!!!
Steve Vitani
Power Realty, LLC
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