Buyers Cashing In On Miami Real Estate Market

It's a problem for thousands of families in South Florida and around the country: Is it better to rent or buy? A national research service now says the answer in Miami is getting a lot easier.

Trulia, a national real estate service, found rock bottom pricing and record low interest rates are teaming up for a one-two punch that's giving the Miami market one of the top ratings in the country for communities where it's now cheaper to buy than rent.

Trulia listed Miami number 3 nationally behind only Arlington Texas and Minneapolis, for reduced home prices.

But local real estate experts warned property taxes and insurance costs are still major considerations when deciding whether renting or owning around South Florida is the best bet.

"If you're going to be here long term for at least 4-5 years, buying may be a better deal for you," warned Miami Realtor Christopher Zoller. "But from a cash only standpoint, if you're going to be here for less time you're better off renting right now."

While price cuts may be growing nationally, Trulia found the Miami market's now well below the national average for close-out pricing.

The highest number of "reduced listings" is in Minneapolis, where almost half of the current listings are considered "reduced," to move them in a stagnant market.

Trulia found the national average to be 26%. Miami's now down to 18%; and that gives us a ranking of 49 out of the top 50 markets nationally for the fewest number of "Close-Outs."

"We are not as bad as we used to be. Some prices are now starting to come back up," Zoller said.

The biggest improvements in South Florida have come from high-end, single family homes which started to see some gains earlier in the summer. But much of the new Miami market strength is based mostly on foreign investors.

The biggest challenge for the housing market remains finding qualified buyers with good enough credit, and high enough incomes, to take advantage of the deals that are now on the market.

Because of continuing foreclosures, there are still expected to be more homes on the market than qualified buyers. That means selling prices may not see much more growth for a while; and that ultimately means more good news for bargain hunters.

Source: http://cbs4.com/CBS4yourmoney/rent.buy.homes.2.1914823.html