Okay, you have been hearing that now is the time to buy a home, but maybe you are still unsure of why, when there is so much inventory on the market and so much insecurity in the economy. Here are 7 specific reasons:
- Home Buyer Tax Credits – The Government is paying first-time home buyers and move-up buyers money to purchase a home. It can be a single family home or a condo, it just has to be your primary residence.
- Interest rates are still at historic lows, currently around 5.25% for a 30-year fixed rate mortgage.
- Lenders are moving their inventories of foreclosures and are becoming more likely to agree to short sales.
- Interest rates will increase due to the huge amount of government debt.
- The median price of a single family home is currently $185,000, down from a median price of $400,000 at the peak of the real estate boom.
- There is currently a 10 month supply of single family homes in Miami-Dade County, down from a 24 month supply at the end of 2008. A stable market has an inventory of 6-9 months.
- There has been a 29% increase in sales since last year.
- Whether single family or condo, under $300,000 or over $1,000,000, the market trend has been a steady decrease in inventory since at least October of 2008.
Now, you may be a naysayer and agree with someone who stated that the price of real estate is going to go down another 33%, but those of us that are active in the market are not seeing it. We are seeing inventories decreasing, foreigners and investors coming back into the market that they had shied away from during the boom years and buyers getting some very good buys. Miami is on sale and many properties are selling for less than what it would cost to build the exact same structure on the same lot. Are you going to be someone who says, “Shoulda, woulda, coulda” or someone who feels lucky that they got into the market when they could?