Having a somewhat analytical mind, I have understood why people have been patient and even hesitant to get in the real estate game. Now the practical side of my mind has come to the surface and I decided to share some of my current thoughts as to when really is the right time to buy.
Well we all know about interest rates by now. They continue to remain near record lows. And despite many lenders attempts to not want to share their bailout money, (FHA minimum credit score requirement is 600, many lenders carrying FHA raised their requirements to 620!), financially it's a really good time to buy.
We have all heard about the "stimulus package", with foreclosure rescue money the number of new distressed properties hitting the market may be significantly less than first reported. In addition, the newly revised $8,000 homebuyer tax credit provides further incentive. Practicality says, it's a really good time to buy.
But what about pricing? Have we hit bottom yet? The short answer is that we reach bottom when we achieve equilibrium. When pricing stabilizes, when inventory is in balance, we are close to the bottom. When search results reveal fewer and fewer homes of similar characteristics within a specified price range, the bottom has come and gone.
With special thanks to the Cape Coral Board of Realtors, here are some facts that might spur some of the fencesitters to action.
Lee County Home Inventory down 21% over this time last year:
- Cape Coral down 33%
- Fort Myers down 16%
- Fort Myers Beach down 7%
- North Ft Myers down 19%
- Lehigh Acres down 11%
Lee County Condo inventory down 15% over this time last year:
- Cape Coral down 23%
- Fort Myers down 17%
- Fort Myers Beach down 5%
- North Ft Myers down 28%
- Lehigh Acres down 12%
By dividing the available homes (active listings) by the number of homes that went pending (under contract) you can determine the number of homes per buyer-Here are the ratio's by city for single family homes:
City March 1, 2008 March 1, 2009
Cape Coral 12.32 3.55
Fort Myers 19.99 5.44
Fort Myers Beach 35.17 21.89
North Fort Myers 18.13 8.50
Lehigh Acres 16.89 5.08
As you can see, home inventory is dropping drastically, sales are up tremendously, interest rates are the lowest in 30+ years. So if you are sitting on the fence trying to decide if this is bottom enough, look at the facts at hand. Look for further results and home search all sw Florida homes here.
In Faith,
Neil G. Blair-Bennett
Broker-Associate
Alliance Realty Group
14090 Metropolis Avenue, Suite 206
Ft. Myers, FL 33912
Direct Line: (239) 645-3798
NeilBlairBennett@Gmail.com
www.Hope4HomeBuyers.org
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You are doing pretty good if you have those sort of ratios. Up north here in Orlando, we still have about 20 months worth of inventory in most areas. There is a long way to go.