If you're going to own a home for a long time....the appreciation will eventually catch up after these down curves. Guess I've been around too long...I still remember when interest rates were 22% and everybody was going crazy.
looking to what you think the future market Might be (this does not help you in the present).
Not very often will someone in the current market will sell you at a future market value of your creation.
As an Economist, I feel very unsure of "knowing the future" - sure I have my warm and fuzzy feelings.
Maybe its as Catherine says: "I don't think prices will get that much lower"
AND THEN AGAIN we might go 50% lower
In the long run, markets tend to correct any short term abnormalities. In short, anyone that says they know what will happen in the next six months should have made a lot of money in the last real estate market correction!!!
Timing the market is a hard game.
In the field of Economics it is said there are two types of economist that predict the future:
One, are those who know they don't know how the future forms,
and Two, those that don't know they don't know.
I don't know what you might solve by not continue to look??? Why not just set down your requirements and then cause you too examine them for being un-realistic. It could be the communtiy you look as many not have the price you require, so maybe you need another community, or another price.
Am I wrong in thinking insurance could be $3,000 or more? It sounds like those costs alone would cost about as much as the mortgage would.
I could maybe afford to buy that place, the other costs make it completely unaffordable.
The PIIGS actually changed the whole financing equation here. People ran from them and placed money here. That dropped interest rates for mortgages. I did not expect that to happen, then again, I did not pay attention to international finance issues.
We can say that nothing done now is making things better really. A slowdown in house prices caused by the $8k bribe followed by more declines when it stopped.
So many things can change the situation, on the negative we have PIIGS, the Euro, Iran, North Korea, the %*$#@###@! Hole!!!, storm season ahead, a good sized group of people wanting to bring the world back to the 1400 century, women draped in cloth, walking behind the men, no medical care, no driving- hummmm something very wrong with all that,
But some things are going well: http://www.trulia.com/blog/davidwhite/2010/07/international_
So in the end, we have hope do we not?
Yes, interest rates could conceivably go even higher than 7%. That would just make it worse.
Finding the right deal is like finding a needle in the hay stack...they are out there, but I believe, you also have to calculate in your functional use and the reduction of stress fr not looking anymore, as well. And, if this is your first home, one cannot expect everything in one house/condo. List your priorities, then search according to those priorities.
Sometimes, it's better to search a really motivated seller than to search short sales/REO's because then, you won't have as much competition. Also, minor renovations might be a pain but might eventually be your future re-sale profit.
There is always a big gap btw buyer's and seller's perceptions...only time can wear both down until one can find the happy medium. However, if you keep getting properties taken fr you, then, perhaps, you need to reassess the realities of this particular market. I don't think prices will get that much lower. As long as interest rates are still reasonable, even the adjustible rates' fall outs that everyone is waiting for, will be able to sell and there will always be buyers in this particular market.
It's good to work w a patient realtor, who really knows this market, and can gage the negotiability/comps, etc. for you. Also, I would make sure that you have proof of funds to negotiate fr a position of strength.
If you want to buy now you could always make a very low offer. What you think it is worth NOT the current market value. Someone just may accept your offer. If so you get a house, if not you lost nothing in the attempt.
Consider what the site below suggests could be coming.
In Miami, one of the nation's harshest hit markets, auction companies are selling condos at some of the lowest prices on record. More than two dozen condo projects have been stopped, victims of the financial crisis as developers lost financing commitments from bankers and hedge funds ran out of money to fund their projects.
The market still has an over supply of condominiums and single family homes, which are projected to take years to sell off. The recovery process will be a long affair in Miami, which is forecast to deflate average housing values 11.9% in 2010.
You may have better luck with bidding on a fixer upper and competing with the CASH buyers with an FHA 203K Simplified fixer upper mortgage.
I attribute my last closing to my buyer's preapproval for a 203K Simplified mortgage on a bank owned property. Asset managers do not want to take the risk (or hassle) of going with a non-cash buyer unless they have assurances that if the roof needs replacing it can be done "after" closing.
So ask your lender for a 203K Simplified fixer upper mortgage and see how it works for you. Also you need to make your offer the FIRST DAY a bank-owned comes on the market because some Asset Managers do not even require one week on the market before accepting an offer!
There are lots of properties, waiting for a qualified buyer.
I have a feeling that there will be even more inventory in the coming months. Just keep your eyes open and have your agent send you an automatic update when new inventory comes on the market.
YES there are great purchase in neighborhood 33154 !
Why don't you ask your friend /broker to look at : 9601 w Broadview drive and 1350 96 street in bay Harbor Islands ?
great houses and sellers motivated ! these are 2 of my lisitngs in this zip code ; of course all depends on your definition of 'appropriately priced " and "fair price' ,
also, top ranked locations still keep their value.
100% agree with John Bennett , below, keep looking ..... !
Awaiting for your showing appt.
Anne de Lacour P.A
Broker / Owner
954 647 0781
There are deals now if you want to make a deal. No offense, but I hear this from people all the time that get frustrated and become professional lookers.
Your money is a s good as any flippers. Quite frankly you can not build any house for what they are currently selling for which makes all of them deals and the flippers know this, thats why they are buying them, fixing them up and reselling them at a profit. You need to get aggressive, place multiple offers and get a deal.
If you want a house thats been redone for the price of one NOT redone, then your wasting your time and your agrument has no validity. 4.8% OR LOWER intererst and some rehab money is far better than rent AND A GOOD SOLID INVESTMENT NOW.
Play the game and play to win, or your left to cry about what could have been while everyones else is making out quite nicely that is doing something.
Get a good agent and do something. Call me if you want Greater Fort Myers and are not working with one. 239-246-6639
Kevin Cloutier, Realtor
Souther Premier Realty