Now really may be the time to buy that new home or second home if Ben Bernanke the Federal Reserve Chairman predictions are correct. Home prices here in Ormond Beach and the Daytona area are definitely down as they are in many areas. Interest rates are still pretty low, and the economy is growing at a fairly steady rate. When you take all those factors into consideration the smartest thing to do might be taking advantage of the current market.
I know some people are waiting, because they think that the prices are going to continue to go down, that may be true in some areas, but on the coast there is just so much property. I feel prices are becoming stable. Sure you are still seeing homes that are overpriced for the times, but most of those homeowners paid too much for their homes to begin with or they are still wishing for the house fairy to make it a sellers market again.
I do think this buyers market will come to an end at some point in the not to distant future, but for the moment buyers you should take advantage of the situation. When we hear national statistics on how much home prices have declined I think we get a false picture of our local situation. I see prices down by 25% or more in most cases. The national average hasn't shown that to be the norm for the country as a whole.
So all of you up North who have been considering a move to Florida now might be the time to really give that some consideration. When you can pick up a 2 bedroom 1 bath beach-side home for around $150 to $180 depending on it's upgrades and condition, or a 3 bedroom, 2 bath for $250 to $300 some with pools or larger floor plans. If you compare those homes prices to 2005 when the smaller 2 bedroom, 1 bath homes were selling (in a very short period of time) for $235 to $285, and the larger 3 bedroom homes were well over $300 and up. These prices are really down and the selection is great. Call me or visit my web site I have hundreds of houses for you to see.
Federal Reserve Chairman Ben Bernanke signaled Wednesday that he is comfortable with current interest rates as long as inflation is moderate. The economic outlook for this year and next appears favorable," the Fed said, as the slowdown in the housing market is expected to diminish this year, while gains in real wages, along with employment gains, "should support a solid rise in consumer spending." He said it is "encouraging" that inflation expectations "appear to have remain contained" The Fed has kept interest rates steady at 5.25% since last summer, a stretch covering five Federal Open Market Committee meetings, and is widely expected to keep them steady at least through the middle of the year. According to an article in RisMedia on February 15, 2007
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