The Miami Real Estate Market is extremely value sensitive right now, as we inch close to the half-way mark in 2010. Unquestionably 2010 remains a buyer’s market. Buyers are looking for value, and finding it.
Overpriced real estate languors, stagnant… while properties that offer value are selling like there’s no tomorrow! Rightfully so. It’s unlikely that we’ll see another opportunity to buy real estate at these prices again, anytime soon.
Few buyers are inclined to overpay for real estate these days… That puts short sales, foreclosures, and well-priced inventory in high demand. And that’s what’s selling in South Florida.
“Compelling pricing, clever marketing, and desirable inventory lit the fire under Miami’s real estate upswing at the start of 2010. We began seeing a notable increase in home sales and purchases in early 2010… in particular in the luxury market segment”, reports Vicki Restivo – Real Estate Expert with Esslinger Wooten Maxwell – in Restivo’s Blog MiamiRealEstateCafe.com .
The Wall Street Journal reports in a study done by MDA DataQuick, a real-estate data provider: “In some areas of the country, sales of homes over $2 million in the first quarter were actually on par with the levels of 2005, the peak year for existing-home sales volume nationwide.”
As with other big ticket purchases (luxury cars, yachts…) cost is determined by more than just price alone. Cost is determined by price and financing – combined.
Unquestionably, interest rates are at an all-time low, although unlikely to remain so. The experts are focusing on a gradual increase in interest rates. Keep in mind that a mere one-percent increase in interest rate will negate a ten percent drop in purchase price. Even if real estate prices continue to soften, the cost of a new home or condo could increase, because of interest rates. Timing the bottom of the market is a virtual impossibility … Real estate experts agree : Hindsight is 20/20. We know we’ve hit bottom, once real estate prices or interest rates have already begun inching up … and certainly not before.
Whenever you are ready to buy or sell property anywhere in South Florida, if you need the help of a knowledgeable real estate professional, call us. We will be pleased to assist you.
