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Florida Real Estate Why Do You Buy The Question That Realtors Should Be Asking
t’s a buyers’ market in sub-prime lending. Anyone can
Florida housing. That’s a tell you that those are a shaky
fact that no one denies. foundation for long-term growth.
Sales are slow. Prices are The recent slowdown in the real
stagnant. The projections, if you estate market is, likewise, due
believe people like Wayne Archer to the breakdown of those two
of the University of Florida’s factors – and it should come as
Bergstrom Center for Real Estate no big surprise.
Studies, are gloomy. The
question, of course, is “Gloomy What Happened to the Bubble?
for whom?” Real estate prices were driven
higher and higher by investors
The fact is that when you step who bought into the dream of
back from the housing sales flipping new construction and
figures and take a look at the making a quick buck. They bought
big picture, what you see is far pre-construction and early
different. A healthy and growing construction properties with the
job market, recent drops in intent of selling them at high
mortgage interest rates and profit when they were finished.
property tax reform combine to According to some real estate
make Florida an excellent place analysts, close to 70% of real
to buy a home – note that word. estate sales during the “boom
HOME, not a house, not an years” were to investors.
investment property, not a
speculative deal, but a HOME. At the same time, home buyers
were seduced by the “creative
Florida’s real estate boom of the financing” offered by many
last five to ten years has been lenders. Promised fast gains in
driven in large part by two real estate value, many home
things – land speculation and buyers jumped at mortgage deals
that were affordable in the short to sell or lose their investment
term. The first of those entirely – are creating a glut on
adjustable rate mortgages have the market.
hit the wall as they come up for
interest adjustment, and those Fewer investors and more houses
buyers who are unable to on the market add up to a slow
refinance are suddenly faced with market. Buyers have been holding
mortgages that they can’t afford. back, understandably. High
property taxes and high interest
rates had persuaded many buyers
During the boom years, the real to wait for a better time to buy.
estate market favored investors. For those home buyers who wanted
With prices rising as fast as you to buy now, there is plenty of
could record them, it made sense choice, and no urgency to close
to buy with the intent to sell. on a house before another buyer
Now that housing prices have snaps up their dream home. In a
stabilized and are even starting soft market, a buyer who is in no
to drop slightly in some markets, hurry can afford to wait out a
the investment attraction has home seller in the hope that the
dropped. Those investors who price will drop, or try to
bought with an eye to high negotiate better terms.
profits from resales are ready to
sell before prices drop. At the Florida is More than the Sum of
same time, many home buyers are Its Real Estate Market
faced with the prospect of a Before we start mourning the
quick sale or foreclosure. The death of the Florida real estate
two market streams – investors market, though, let’s take a look
unloading their properties to at the bigger picture. Overall,
preserve as much profit as Florida’s economy is flourishing.
possible and homeowners who need The Florida unemployment rate
continues at more than 1.3% below are eligible for monetary
the national unemployment rate. incentives as reward for doing
Major companies – both national well. In short, Florida has made
and international – are moving providing excellence in education
their headquarters and opening a priority.
new offices in Florida cities,
and account for nearly 150,000 Property taxes, which have been a
new jobs in Florida since January major negative for many
2006. In fact, the February issue prospective buyers, are in the
of Forbes named six Florida process of undergoing reform.
cities in their top 25 “Best Florida Governor Crist has
Cities for Jobs”. committed not only to immediate
tax cuts and savings, but to long
Florida’s A+ Plan for Education term overhaul of the state’s
is being touted as a model property tax structure to make it
program for school improvement. more fair and equitable. In the
Every school in the state is meantime, there are several
given a letter grade, so that initiatives and methods to cut
it’s easy for parents to decide property taxes on the table.
on options for their children’s
education. The school choice Finally, for the first time in
program allows parents to move years, interest rates on Florida
their children out of schools mortgages dropped for three
with bad grades, or provides consecutive weeks early this
incentives for them to work with summer, and all indicators are
those schools to improve them. that this trend will continue.
Schools with poor grades are Lower interest rates and lower
eligible for financial and home prices, combined with good
technical aid to help them schools, lower taxes and a strong
improve. Schools with good grades economy – you can add up the
numbers yourself. Now is a perfect time for doing
that in the Florida market.
Bad News for Speculators is Good Today’s Florida home buyer will
News for Home Buyers find a wealth of choices on the
The doom and gloom sayers market, prices that reflect the
concentrate on falling home value of their home, an excellent
prices and the effect that those school system with a commitment
prices will have on investment to improving, a government that
value of housing. The fact is is committed to lowering property
that most people are not buying taxes while maintaining services
real estate for speculation. Most and an economy that is attracting
people who buy houses are buying the biggest players in the
homes, not property. They are world’s business market. Put all
buying with the intent of those together and shake it up
settling in, raising a family, with Florida’s stunning beauty,
living in a community and gorgeous beaches and balmy
creating a home. weather, and how can you lose?
About the Author:
Calum MacKenzie is Broker/Owner of Real Living Southern Homes, a residential real estate brokerage serving the New Tampa real estate market.
Read more articles by: Calum MacKenzie
Article Source: www.iSnare.com |
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