First time buyers are forty percent of the total real estate buyers market. With a glut of property for sale and the price of homes dropping daily, first time buyers find themselves in the unique position of being in an incredibly generous buyers market. A buyers market occurs when the prices of homes are below market value. This occurs when supply far exceeds demand. Foreclosures and overbuilding of residential communities has created a surplus of supply on the real estate market.
This is when economists will tell you to invest. But, if you're one of those people that has been renting property for years and are reluctant to take on the responsibility of a mortgage, you should take recent price dropping into consideration. A home in Bal Harbour that cost $420,000 in 2004 may cost $295,000 in the current market. That kind of price reduction is not uncommon for Bal Harbour, Aventura, Sunny Isles or even Surfside. Mortgage payments for homes in these areas are considerably more manageable and make them hotspots for first time homeowners.
Home buying is a very tricky operation, and inexperienced people often end up losing money or getting the wrong property for their wants and needs. Having a real estate professional is pivotal--especially for a first time buyer--to accomplish your short and long term property ownership goals. Be sure when picking a realtor they have experienced handling transactions in the area you want to live.
Some people believe the current real estate market, even with its low prices, is not a sound market to invest in. They think the real estate market is headed for more woes and that rock bottom prices are still in the distant future. Do you think now is a good time to buy? And if so, what location would you recommend for first time buyers?
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