When will be the best time to BUY in the housing market in South Florida? Years?
We have the money now, but we think prices are going lower due to all the foreclosures and the glut of houses on the market. Would it be wise to wait another couple of years? I’d love to hear your opinions. (We are talking about the Miami/Hollywood/Ft.Lauderdale metro area in South Florida).
I believe when its colder in about 4-6 months the prices will drop to a low you should be able to get a deal then best of luck.
Posted by MovingJacksonville.com
Posted in Florida Foreclosures
There are bargains to be found now. there may be better bargains in the next year or two, but there is no way to predict. In another year prices may be higher. You are in a buyer’s market. If you need a house, now is as good a time to buy as any.
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i’d wait
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If you have the money now. I would buy in the next 12 months. Housing has really dropped in the last year. However, they expect it to rise again by 2008/2009. There are some terrific buys out there if you look hard enough. We bought a house a few months ago with $80,000 in equity that has not dropped as of yet.
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Yes I agree there are many good deals currently in south Florida. I specialize in FHA home loans and work with a lot of individuals in South Florida that are facing foreclosure. If you need help with purchasing a new home FHA offers 97% Financing options and there are many advanages to the program to help the home buyer. Some advantages include,
Minimal Down Payment and Closing Costs.
Your Down payment is less than 3% of Sales Price
Gift monies for down payment and closing costs are allowed.
No bank reserves are required.
FHA regulates the closing costs.
Seller can credit up to 6% of sales price towards buyers costs.
Easier Credit Qualifying Guidelines
•No minimum FICO score or credit score requirements.
•FHA will allow a home purchase 2 years after a Bankruptcy.
•FHA will allow a home purchase 3 years after a Foreclosure
References :
http://www.fhamortgageprograms.com/mortgage/fha-loan-program.shtml
I believe when its colder in about 4-6 months the prices will drop to a low you should be able to get a deal then best of luck.
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"Florida
Slowed by a series of hurricanes, rising interest rates and all time record foreclosures, the Florida real estate market is winding down from the doldrums.
Florida’s markets hit the brakes before most of the rest of the country as a result of the hurricanes, and although property sales are still slow the long term health of Florida housing is positive. After all there’s only one state that calls itself The Sunshine State.
Florida, however, has issues to deal with in real estate. A ballot proposal intended to cut property taxes for full time homeowners may be delayed from reaching the ballot in January. The courts have intervened.
The price of homeowners insurance sky-rocked after hurricanes hit the state and insurance companies have still not slashed prices as much as they promised to do so. Many have stopped writing policies all together.
But some local housing markets in Florida are seeing an increase in buyers shopping for property aware that prices are substantially lower than when the housing market was booming.
City Median Price Forecast
Miami $ 348,000 − 12.7%
Orlando $ 245,000 − 6.2%
Jacksonville $ 197,000 − 4.5%
Fort Lauderdale $ 324,000 − 6.9%
Lakeland $ 162,000 − 2.0%
Naples $ 407,000 − 8.8%
Palm Beach $ 384,000 − 8.7%
Tampa $ 221,000 − 6.7%
Tallahassee $ 185,000 − 5.2%
However, Miami is ground zero of the falling national housing market with an over-abundance of condominiums. Some 25,000 pre-construction condos are due to be completed within the next 15 months, which will send the already record inventory of units on the market for sale to new highs. It may take several years for the Miami market to absorb the number of units amid falling prices and increasing job losses due to a new construction boom going bust. Miami will experience a slow market through 2007 and Housing Predictor forecasts Miami will fall an average of 12.7% in housing values by year’s end.
In Tampa, where the median price is already down to $221,000 prices are beginning to show signs of stabilizing, and will average a drop of 6.7% in 2007. Tampa saw prices shoot up 30 percent in 2005.
Jacksonville is the largest city in Florida and has a lot to offer. It was named as one of the top ten cities to find a job by Forbes magazine. Home prices vary widely from single family track homes to golf course properties and waterfront estates. Like many areas in Florida new construction has flooded the market and builders are offering incentives to sell their homes. It’s a buyers market with the average time on the market increasing almost daily, the median price of home is $197,000 and is projected to fall 4.5% in 2007.
With Jacksonville’s strong economy and the median home price steadily declining their housing market should fair better than other Florida real estate markets.
Orlando is Florida’s home to Disneyworld and the world’s # 1 vacation destination. Real estate has slowed in Orlando as the market broke all time sales records and will end the year with an average lackluster loss of 6.2%. The median price for a home in Orlando is now $245,000.
The retirement community of Lakeland held Housing Predictor’s highest appreciation level for 2006 at 13.0%. But Lakeland lived out it’s hey days and is slowly winding down. The median price of a home in Lakeland is a modest $162,000, and it will finish 2007 just 2% behind last year’s prices, mainly due to an influx of new older residents, many of whom are complacent to hang around for a while.
Naples led the south-east in appreciation garnering a median price of $407,000, but real estate sales have ground to a halt in Naples and it will finish 2007 at a minus of 8.8% on average.
Palm Beach, recognized as the playground for the rich and famous, will complete 2007 with an average loss in values of 8.7% on a median price of $384,000. In the panhandle Panama City Beach with it’s over abundance of newly built condos will fall an estimated 8.6% in 2007.
Sarasota will record an average loss of 6.9%, and the state capitol of Tallahassee is forecast by Housing Predictor to complete 2007 with a lesser 5.2% loss on average."
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housingpredictor.com
There is probably not a clear answer. This is a gamble. The Federal Reserves liquidity efforts should have caused the short term market to improve and then led to a bigger problem five years down the road when even more buyers would be in over their heads. However, the housing market currently shows no sign of short term relief and this could be a very big concern.
On the other hand, the liquidity has increased inflation which should provide some long term support for housing relative to the dollar. The problem is that the lenders know that fed is willing to trade inflation for housing market mistakes. This causes lenders (and we are not talking about gov lending) to increase long term rates (or refuse to lend). The reduction in lending works to offset inflation and feeds a recessionary correction. http://www.a2dvoices.com/realitycheck/markets/
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http://www.a2dvoices.com/realitycheck