Are Miami and Tampa Poised for a Turnaround?

By
Services for Real Estate Pros with Lang Realty FLORIDA SL456703

Posted on newconsearch.com June 15, 2008 by Connie Talcott Smith

 

This week's FORTUNE Magazine, dated June 23, 2008, specifically cites Miami (NOT the Beach) and Tampa may be among the six best US markets for investment in a feature article entitled "Real Estate: Where The Deals Are." Prices have fallen 21.7% and 17.5% in a year according to the S&P/Case Shiller home price index. (See our last ALERT on The State of Real Estate for a discussion of these indices).

The FORTUNE article gives hints as to where to find the best deals within these areas and strongly points out what we have been saying all along... look to new construction deals first. Shopping foreclosures and depressed neighborhoods are likely to bring the investor more problems... and less margin for negotiation than a developer with inventory to move quickly and deliver in new condition.

While it is difficult to determine exactly when the market has hit its lowest, we can say this much: your prospects, if seeking a mortgage, are likely to get the lowest interest rate at this time. Economic indicators show that interest rates are likely to rise, perhaps quickly, in the coming year.

Low prices and low mortgage rates suggest a good time to help that prospect find a home before interest rates spiral upward and make that desirable home unaffordable.

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