Second and most probably the major reason, have some tax relief, or at least having the new property tax applied; let me give you an idea........
I saw my "investment" property going from $1300 to $ 4000 in the past 3 yrs, that's a 325% increase.
Now imagine what could I've done with the 225 a month, could go in vacation, buy a car, save it for another dwn pymt on a house.....therefore creating business! Did i say gas was 1.25 a gallon?
Property tax relief, along with control of insurance rates should also go along way to help the market. Interest rates are still historically quite low, but of course any lowering rates will also help boost the market.
I see the market stabilizing itself right now. Buyers have lots to look at and can make great deals on existing inventory. We as Realtors need to educate our buyers and sellers about the current market.
I believe that interest rates will rise to over 10% in the next few years, thus lowering the principle price tag of homes as well. Prices need to fall a lot further in order to finally stabilize relative to income levels. Nothing is going to stabilize the inflated prices that we see today. These prices aren't based on income levels, but based on the ability to acquire homes with ARM mortgages and the like. Since those are now gone, these prices mean absolutely nothing in today's market.
The sooner government stops trying to postpone the inevitable, the better.
Instead most real estate pros on Trulia choose to follow the party line of the NAR and Lawrence Yun who everyone knows by now is a laughing stock and an embarrassment to realtor's everywhere.
An honest real estate pro
I'm a numbers gal and we're still in an oversupply situation. I'm sticking to my 2010 prediction and I'm hoping a renewed optimism (post election), some well appointed cabinet members with sharped pencils and economically minded balance sheet goals will jump start important elements of the economy that stir the financial pot a little and catch this predicament before it becomes catastrophic.
I did meet with a friend last week who has direct ties to wall street and apparently there's "plenty of money". I trust his knowledge, he's one of the most brilliant financial minds of our era. This gave me great resolve that things will rebound sooner than later. But we've got a corner to turn on this market and we're just not there yet.
An honest real estate pro.
"We have started to increase. I think we have bottom out. I dont predict that we will decline anymore. Florida is one of the top 3 states to move to. We have a low unemployment rate and the Tampa bay area is highly attractive to new comers. Stay positive its contagious."
Licensed Real Estate Consultant
Thu Oct 18 2007, 13:37
Thus far the signs have been good for continued activite....let's hope it continues.
The "Eckler Team"
Century 21 Almar and Associates
But there's an interesting "pocket" that will form for those who get in before the stablization - for a brief window (let's call it 4 months) there will be spurt of price apprecation out of the slump (which by the way I don't predict until spring 2010 and only then so long as there's not a deluge of foreclosures - which could occur but probably won't). Why the spurt of apprecation? No new home inventory in the pipe - virturally none.
Once the market begins to grab a little traction and resales become stable the ramp up time to bring new home inventory to market will take at least 120 days (to deliver).
Want to time the swing? My prediction is buy well over the next 6 mos., hold at a positive cash flow and plan to exit (with a 1031 or refi) in the spring of 2010 during the spurt.
Good luck, have fun, make money.
Licensed Real Estate Consultant