Let’s start off by getting a few things out of the way first: the economic climate is dicey to say the least and the real estate market remains in an unstable state where home buying remains a risky, albeit much more affordable prospect. It’s this prospect that has apparently been ingrained in the minds of home buyers which bring some favorable news.
The month of May saw another gain in existing home sales, a modest two percent increase from April. Yes, it does remain comparably low to a year ago but that’s a given considering the overall state of things yet it remains at least somewhat encouraging. With that in mind, overall prices for property around the country—South Florida homes included—also dipped from about $220,000 to less than $210,000 which again, is expected.
Countless real estate blogs and real estate news articles have always spoken about a so-called “buyers market”, this market being the one the country is in right now. A Miami Beach condo lingering around the market without buyer and investor interest has seen its price plummet much closer to inexpensive and it appears that this increase in existing home sales is further solidifying the idea the market is indeed skewed towards buyers.
Lawrence Yun, the economist from the National Association of Realtors has long been an advocate who sees an eventual market recovery, albeit not this year. Figures will continue to swing in both directions until the market finally starts to climb out of its slump in 2009 and the May home sales increase is arguably evidence of that. And again, it’s always better to adopt an optimistic approach than to expect more doom and gloom. No one knows when the market will fully recover and yes, things can get worse but a negative outlook only makes things worse.