I agree with him and am seeing the same. With interest rates so low, and with home prices so low, investors and first time home buyers are taking over the market right now. It is still not a great time to list a home, but if you have to, it is going to sell if it is priced right.
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I realize that since your posted this question several months ago, you may have already gotten your answer, but I will give you my opinion anyway.:)
First, as you know, property in Gainesville, like much of the country dropped in values from the 2006 price run-up. So, the first question back to you, is when did you purchase your property? If you bought in 2005-2007 you have likely lost value and therefore you will assume a loss in sale price. However, that doesn't mean you lost money.
You should calculate all the financial variables involved. So, add up your condo fees, taxes, insurance, other expenses associated with owning the property. Then get an accurate look at its current value (a Realtor can do this for you for no charge). If you sold it today for the current market value, what is the difference from the money you owe on the mortgage? Are you in the black at this point or the red?
Next you want to look realistically at the potential rental income. Every area has a market for rent. In Gainesville, an average is about $350 for each bedroom a month. If you rent it out, will the monthly rent pay for all your monthly expenses? If you are in the red, how much will you have to kick in each month to cover that difference.
Lastly, a lot of people like to believe that it will take a year or two for the market to "get better." Sadly, that way of thinking can cost you a lot of money. First of all, every day homes sell in Gainesville. In fact, thousands sold in 2010 and thousands will sell in 2011 when we have the final tally. So if you want to sell a property, it is quite possible today. However, it is important to price a home at market value or slightly below to get it sold on average in about 160 days. If you don't want to sell your property at market value, then you are in for a long wait. Overpriced properties take years to sell and rarely sell at those overprices.
Trying to time the market is very difficult. Many, many learned experts had no idea that the bubble was going to burst back in 2007. So it is no easier to predict what will happen to our market next year or the year after. It is best to deal with the here and now. However, history can give us a peak at what to expect.
After the Great Depression, the housing market crashed and stayed low for about three years, then it jumped a bit, then crash a little again, then steadily grew. Our US Census collects data every 10 years, and every Census has reported house price gains for the last 70 years, and 2010 was no exception.
So what does that mean, well it means that if you hold your property for 10 years or more, the likelihood is that it will appreciate. However, appreciation is not a straight line up, it dips and flatlines sometimes for years. In Gainesville, the experts are predicting that prices may sink a bit in 2011 and 2012 and then flatline, then climb a bit, maybe 4 percent a year, maybe less.
So in the end, calculate your home's current market value, add 2 to 4 percent for annual gain, figure out how long it will take to get to the price you were hoping for. Will it take years? Decades? Then figure the cost of owning the home. Multiply it by the number of those years. Those numbers should help you decide if you should sell.
Broker and Vice President Prudential Trend Realty
No one really knows whether prices will continue to keep falling or not with high certainty. One safe opinion to make though is that they are not expected to rise in the short term (one year or so) as long as the economy continues to be in its current overall condition.
However, right now is a great time to buy though becasue prices are realtively low and also mortgage interest rates are at an all time low! This means your mortgage payments for a given sale price will be lower than in any other time period you wanted to purcahse a home at that same sale price.
Right now you can purchase a property with no money down as well! If you would like to get prequalified to see what would be the max sale price of a home you could qualify for to buy feel free to contact me at:
My Company, Leon Mortgage, has all the government loan programs including fha, fannie mae, freddie mac, va, and more.
United Country Land & Lifestyle Properties
Anna Leckel , REALTOR
MBA,CIPS,GREEN ECO, TRC,AHWD,ICREA,SFR
Exit Realty Producers
220-B NW 76th Drive
Gainesville Florida USA 32607
Mobile or Cell Phone Number +1(352) 284-9733, http://www.myfloridahomeonline.net Email: email@example.com