The chicken or the egg
of Real Estate in South Florida
Since April 2013 we in
Florida and the country in general have found that real estate values were
escalating some say into another bubble and other say just a normal high after
being at such a low for so long. This was spear headed by the new construction
in many states and resale homes selling at a nice pace if they were priced at
value, combined with interest rates being the lowest in history.
Rising property
values and a flurry of new construction have restored profitability to markets
whose collapse sent South Florida’s economy into a tailspin. Even last year
which showed signs of promise did not have interest rates that were in the low
3% range and escalation of value swing up in homes appraising at higher than
the sales price. Finally as interest rates went up in the last 90 days we saw
the bubble burst and the local market did not stop but without a doubt slowed
down since mid Augusts, as rates climbed to their highest level in 2 years,
which is still historically low.
For those buyers
who did not wish to be buying in the middle of a bubble and thought values
would go down when things slowed down this is not happening. Instead the values
are staying steady and escalating to the degree they were which looked like
around 20 percent per year or 2 percent per month for the first 6 months of the
year. With Ben Bernanke resolve to keep our economy going and
keeping interest rates low we feel he will try to keep them in the 4 percent
range giving buyers on the sidelines still time in the next 4 to 6 months to
get into the real estate market and take advantage of todays great values
before they are gone !
article by Lea
Plotkin & Rubin Wites
954-802-8451 or
email leaplotkine@gmail.com
Parkland Florida & Coral Springs
Florida Real Estate
Berkshire Hathaway
home services Florida Realty coming soon
Read more click here on our Parkland & Coral Springs Blog. book mark
it . we keep it up to date weekly.
New construction allows you to lock in the
price today so when it closes in 10 to 12 months or more depending on the
builder and where the home is, you have a built in profit-but at what interest
rate? A lot to think about and it is much easier when you have a professional
to bounce things off.
If you are planning on buying a home in South
Florida or Selling one, the Team of Lea Plotkin and Rubin Wites, Realtors with
Prudential Florida Realty are the realtors you should speak to:
954-802-8451 or leaplotkin@gmail.com or Rwites@gmail.com
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