The Perfect Storm to be a Real Estate Buyer

Posted by Eric Miller on Sunday, August 29th, 2010 at 7:41pm.

Fort Lauderdale Real Estate

Low Interest Rates - Low Inventory - Single a change coming for the Ft. Lauderdale Real Estate market 

This past week the government announced that home sales for the month of July were down. The media reported the story of gloom and doom and some buyers ran for cover quickly as they predicting things like continued decreases in real estate prices, and the famous double dip. Many in the know yawned as they heard this news, as they knew it was coming. It marked the end of the leftover deals from the government's tax credit which ended in June. The news itself made many potential buyers ask the same question they have asked themselves over and over again, Is it a good time to buy?

Then the rumor started to spread that because home sales were down the government was going to have to come out with a new tax credit or some other stimulus package. Naturally buyers had to ask the question again but word it a bit differently. If there is a possibility of a new tax credit, is it a good time to buy or should I wait?

A new rumor hit the street that once again made buyers think twice if it was the right time to buy. There is now talk of lower interest rates. Yes, rates lower than those 4.5% rates you have been seeing could be in the not too distant future. If this is the case as a buyer, Should I wait to buy until rates go lower or is now a good time to buy a house?

With lower interest rates coming, certainly more home buyers will be driven into the market place. The first impact of lower interest rates is that the home affordability index drops, simply making homes more affordable to more people.

The cause and effect has been seen before and it will happen again. In is impossible to time any market.  From the stock market, to the real estate market, picking the exact bottom or top only happens out of luck and perception. It you perceive you sold at the top of the market, then you did. Today years after the peak of our real estate prices in the Fort Lauderdale Real Estate market, it is almost impossible to find two real estate professionals who agree when the peak was. 

However, when more buyers come to market, and start to buy, because of great prices or low rates, or needing a home, the reason does not matter; inventory starts to shrink (we already see this happening), the days on market for the best homes becomes less (we all ready see this happening), great home priced right,  get multiple offers (we all ready see this happening), and then finally as all the pieces fall into place we will start to see prices begin to stabilize and increase.

So the next line is not an original but I have always loved it, with prices this low and interest rates this low, when is a great time to buy a house? When you find the one you like.

So lets start hunting. 

Simply tell us what's on your Fort Lauderdale Real Estate wish list, and we are here to help with real answers!

 

 

 

Eric Miller is an award winning Florida Realtor, salesperson and broker. His website, FortLauderdaleGroup.com provides an up-to-date guide to Fort Lauderdale Condos for sale, and the most complete buyer, seller and investor information for the Fort Lauderdale Real Estate Market.

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