Overview of Florida's Real Estate Market

posted November 2007

Every now and them we go thru some adjustments in the Real Estate Market as in the stock market. Usually these periodos of correction translate into opportunities for investors. In times like this investors have the chance to hunt for bargains. What we are experiencing on the Florida Real Estate Market is exactly that. Florida is having a real estate sale. Good news for the Florida first time home buyer . With some much inventory out there and with the multiple offers to buy the same property being a thing of the past, home shoppers finally have the upper hand.

Home Sales in Florida have fallen by 40 percent from a year earlier but the reality did not change. Florida is still a great place to retire or to raise a family. Welcome to real estate’s new perspective. Prices are down, foreclosures are on the rise, for sale signs are getting weather-beaten and the real estate experts are anxious. That may be bad news if you are trying to sell your property. Some speculators that bought in 2004 and 2005 are having a hard time to pay their mortgage, getting very nervous, wanting to liquidate their negative cash flow properties. As a buyer you have plenty of choices as well as the uper hand when negociating the right price and the benefit of low interest rates is still a reality.

Eventhough it’s impossible to know whether a house you buy today won’t lose more value before the market rebounds, a good way to build a comfortable cushiion against fallen prices is to make offers well below last years’ prices. It is also wise to make a 10 to 20 percent down payment. There are a lot of lessons to be learned from the recent sub prime mortgage crises. Stay away from adjustable rates that eventually will adjust and raise your mortgage payment quite a bit sometimes, avoid interest only financing. Many buyers got stucked with mortgage balances that are greater than the value of their homes. Keep in mind that you need to be prepared to stay at your home for a while. It may be very easy to buy a home now but selling it’s not quite that easy. Last thing you want is to have two mortgages payments if you need to relocate.

The longer the house is on the market, the more power you have to negociate a better price. A good way to identify a Florida Real Estate seller that is hungry for money is to find out how long the house has been for sale. That’s when having a smart Florida real estate agent comes in handy. Do not trust the Multiple-Listing Service data. The house could have been on the market before, perhaps the sellers withdrew and re-listed the property shortly after, View the full listing before making your decision.

Finally don’t let your emotions dictate your actions. Chances are you will always find a better house. Your Florida home buying experience should be a marriage between the perfect house and the best deal. Take advantage of the current Florida Real Estate Market conditions. Don’t feel bad in making offers that are 15 to 20 percent below asking prices. Ask the sellers to pay most if not all your closing costs and keep on searching if you can not find yourself a great deal.