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Ft Lauderdale Real Estate- Keep a Positive Outlook for 2010

By
Real Estate Agent with EWM Real Estate

There are so many naysayers out there and that will probably never change. Some people make a living at throwing negativity out in the world just to throw out a contrasting point of view. To them I say, "Find a new job!"

Just in the last twelve months in the Ft. Lauderdale real estate market, I've witnessed price points under $400k experiencing bidding wars over distressed or newly renovated properties. In many ways, it was reminiscent of the old glory days of 5 years ago.

Ft. Lauderdale has experienced a renaissance in the real estate market. Prices of homes and investment properties are now so affordable that the non-college type can purchase and own a piece of terra-firma. If a person has carpentry or mechanical talents, there are properties going for as much as 75% off their peak prices from 5 years ago. After recently doing some extensive research in the Ft. Lauderdale area investment arena, it's clear that the affordable properties to renovate and hold as rentals are quickly disappearing. This was not the case this time last year.

Mortgage rates have now calmed back under the 5% threshold to close at 4.98% on Friday, January 29th. Most economists do predict unfortunately that the rates will increase to approximately 6% by year's end. This could have a substantial impact to the local Ft. Lauderdale real estate market. The driving forces of recovery in this local real estate market have been ridiculously low interest rates and free government money. Someone in Washington maybe had a fuzzy but practical point to give tax credits to the first time buyers. When the tax credit was extended to existing home owners on December 1st, that was brilliant. Someone figured out that the pool of first time buyers would eventually dwindle, but a bigger source of movement could come from the pool of existing home owners. The key to the continued recovery in the local Ft. Lauderdale market will come from the extension of the tax credit due to expire on the 30th of April.

A huge turn for the Ft. Lauderdale real estate market came from a change in the perception of the consumer. There is a lot more confidence in the local real estate market now compared to two years ago. In 2007 to early 2008, you couldn't put a price attractive enough to sway many to take the leap of ownership. Many went into rentals knowing that the prices were falling and they were going to wait it out. Today, that ship has sailed and people are once again exchanging their existing homes, often securing the buyer within 79-90 days from listing the property and settling on an offer that is approximately 96% of their asking price. These are great number that have only improved within the past 12 months.

To the naysayers, find another job! Ft. Lauderdale real estate is alive and recovering nicely. To those who are still on the fence, jump off and dive right in. The water is warm and it's calm. You may tread a little water in terms of appreciation for the next few years, but the freedom of ownership, the free tax money and the income tax right off for interest and taxes are very intoxicating for building wealth in the near future.

If you'd like to chat more leave me a message.

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Jim O'Donnell
Raleigh Cary Realty - Fuquay Varina, NC

I was born in Broward General in 1957, but the landscape has changed alot since then.  My Grandfather ran the Swimming Hall of Fame pool during WWII

Jan 30, 2010 12:58 AM