Orlando Mortgage Blog

Florida Real Estate May Never Be Less Expensive

September 3rd, 2009 2:23 PM by BILL WILBANKS

Florida Move-Up Buyers...Where Are You?

For those of you that were around in 2006 in the Florida market you may well remember the frenzied "lemming-like" mentality of the market that drove thousands of wouldbe buyers to rush out to buy a property before it went even higher if not out of your range completely. Everyone knew folks that bought and flipped it in short periods of time to make never before seen piles of money. Florida hadn't seen that type speculation since the infamous roaring twenties with the "I've got some waterfront property.........".

Well folks those 3,000 to 3,500 sf homes that may have started around $275,000 preconstruction that got bid up to unbelievable figures like $525,000 to nearly $600,000 that year are available all around the market for $300,000 to $350,000 or less for the careful shopper today. That's a 40 to 50% reduction from the scarce air a few folks bid it up to back then. Why? Simple supply and demand. Most homeowners have seen about a 40% reduction from the 2006 unsustainable values that were little more than paper tigers. If you already owned your home and didn't get sucked into the black hole of excalating values at that time then all this is so much hot air really. You didn't loose anything except on paper. You're probably no worse off and in most cases probably better than many that jumped in at the peak. And most of those are probably upsidedown today.

You are actually in the driver's seat as a new buyer today. There are unreal bargains out there wherever you look in any price range and you don't have to settle for the "short sale" deal or foreclosure. Standard sales prices are way down. Yes, that means your home value is down on a comparative basis too if you sell it. But if you break even or better you have a great advantage today to be able to buy a larger home if you need one, buy down if you are an empty nester, buy in the area of town you always wanted to live in and many many more examples today.

So move-up buying is not dead only part of the walking wounded. Use this market event to your advantage if you can. When your home value starts climbing so does everyone elses and who knows what the rates will be then in the market? I truly beleive this to be the greatest opportunity that most will pass by at least in my lifetime and that's not rhetoric. Remember I told you so.

 

Bill Wilbanks

Posted in:General
Posted by BILL WILBANKS on September 3rd, 2009 2:23 PM

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