My New Blog

It's true what you've heard- it is a fantastic time to for home buyers in southern Florida.  Prices are unbeatable and the interest rates are at a historic low, which combines to make the perfect home that much more affordable.

Palm Beach County home prices have leveled off and even begun to rise slightly over the past 3 months.  Most home sellers have adjusted their prices accordingly to the point where the "low-ball offer" is not necessary. 

The proof is in the numbers.  The following statistics refer to the "months of inventory", which means how many months it would take in a normal market to sell all of the homes currently listed.  Since supply and demand dictate the market, this is a vital and often overlooked indicator of the strength of the housing market.

The following statistics refer only to Palm Beach County and were released by the Realtors Association of the Palm Beaches on June 12, 2009.

Single Family Homes    30.1 months of inventory in January 2008

                                  7.5 months of inventory in May of 2009

Condos / Townhomes   56.4 months of inventory in September 2007

                                          12.8 months of inventory in May of 2009

This drop in inventory demonstrates the profound recovery the housing Palm Beach County market has made over the past few months.  Since housing prices began to slide long before the national market began to feel the pinch, we in south Florida are also recovering before the rest of the nation. 

A normal market has about 3 or 4 months of inventory which comes as little surprise to Palm Beach county realators.   Indigo, as well as many other local offices, has been very busy since the 1st of this year.   The market is hot and homes are selling at exceptional prices.   It is important to keep in mind, however, that in many cases the price is the price.  That said, you do still have to be careful.  If a home is overpriced, it will not appraise.  Appraisal is another topic to be saved for later.

So why is it a tough time to buy?  It seems that the common misconception outside of the state that "Florida is for sale!"  Out of towners have heard about the great prices and hope to realize their dream of moving to sunny Florida.  Most buyers will need help in navigating the sea of adjusted prices, foreclosures, and short-sales.   

Lots of folks are drawn to the steals to be had in foreclosed upon or bank-owned home.  While the prices of these troubled homes can't be beat, prospective buyers need to remember that these homes are troubled.  Here is a great example. Let's say you are trying to sell your house for $350,000.  Your next door neighbor goes into foreclosure, and the bank takes it over.  By the time the bank gets the house and puts it on the market, the house has deteriorated and is listed for $250,000.  Now you have to compete with your neighbor's price.  His low price directly affects your price.  In order to sell, the chances are pretty good that you would have to lower your price to meet his, even though your house is in better condition. 

As a buyer, which house would you rather buy?  The healthy home at a great price, or the foreclosure at rock-bottom price and rock-bottom value?

Its a tricky market, but great deals are out there.  If you are ready to purchase a new home, you will need an experienced and knowledgeable real estate professional to help guide through today's rocky financial waters and towards your new tropical home.