By now you have read howÂ housing prices have stabilized, home sales have increased, investors are buying up all of the foreclosure homes, financing options are back, etc., etc., etc.
The reality is that we are close to the bottom but we are NOT out of this recessionÂ yet.Â Only time will tell if market conditions on a macro level have improved in order to transcend the micro level of your particularly state, county, city or neighborhood.
But prices have seen a stabilization as of late and in some communities such as Aventura, Sunny Isles Beach, Miami Beach, Coral Gables and Downtown Miami, we have seen prices increase.Â Banks are back in the financing of new homes but with stronger underwriting and credit criterias.Â Inventories are nearing thier 6-month market for a healthy margin and developers have or will beÂ breakingÂ ground soon on new high rise condo developments and single family homes, albeit, with very significant changes.
For one, the required deposits are much larger, some as much as 50% and some as small as 30%, but don't be fooled, the days of putting 10% with the intent of flipping the contract are over.Â Developers are requiring buyers to be principal home users or if they are second homes, then the deposits can beÂ as much as 50%.
Second, the location, location, location is back as the main decision for new development inÂ South Florida.Â Beach locations with access to major roads, largeÂ employment centers with suburban access, downtown rental demands are the main focus of this new development in areas like Miami Beach, Palm Beach, Hollywood and Downtown Miami.Â For single family homes, we are seeing new development in Doral, Miramar and Weston butÂ not much of any in Homestead or Pembroke Pines.
Third, pricing has become a key component for the new developments.Â Related of Florida is now building smaller condo units that provide an average condo price of $500,000 per building.Â Single Family Home developers are using a price points of $100 to $125 PSF.Â Gone are the days of ultra large units with all amenities included with top line pricing.Â Today's units are smaller, more efficient and on smaller lots.Â More standard features are provided but luxury features such as a bidet, granite tops, impact windows and pools are out unless you are willing to pay for them in cash.
These changes were needed in order to keep prices within reach of the Florida Resident as well as the foreign or out of stateÂ home buyer.Â By opening the pool of units to a larger pool of buyers, developers can keep prices from getting out of hand and controlling or eliminating the fast flip, that destroyed the housing market in 2007.
That is why in today's volatile housing market, buyers should take advantage and work with a local real estate professional.Â Having their expertise in the transaction, offering advice, experience and talent places the buyer in a better position to find the right home at the right price.
Would you walk into an operating room based on the recommendation of one doctor? Or would you get aÂ second or third opinion, evaluate the doctor with friends and family, research his background, educate yourself on the procedure and more.Â Surely, if an operation is that important you would do all and more.Â So why go into the single largest purchase of your lifetime, dependent on the developer's staff recommendations only?Â Just would not make sense.
Managing your risk at the bottom of the market with help from your local realtor canÂ gain you perspective on your options,Â understanding of your goals in the home purchase andÂ the possibility of a lower price and better terms.Â All of this, for free.Â Sounds like a great deal and it truly is.
With over 25+ years of combined experience, The Lifter Team and help you navigate through the waters of today's buyer's market and help you make an educated decision on your home purchase. Best of all, you get all of this service for FREE!
When we work with buyer's, our seller's cover 100% of our commission costs. So why would you try to buy your home without us, well that would just be plain silly!
Give us a call - 305-652-5506 x 101
The agents with the Local Touch!