If you bought a home or condo between 2005 and 2008 – at the height of the housing market – breaking even will likely be a challenge ( if you need to sell now).
Read on though, because the housing market has already begun to rebound!
After skyrocketing, property values dropped, and they did so for several reasons. They dropped because of number of short sales and foreclosures. They dropped because of glut of new construction throughout Miami. They dropped as a result of the economic situation. And they dropped because it is a normal, expected part of the housing cycle and real estate market.
Housing prices don’t continuously escalate. There is a cycle – an ebb and a flow – affected by mortgage rates, availability, the economic climate, and the balance between available homes for sale and the number of ready, willing and able buyers there are for those homes.
That said, the current housing climate in Miami has a rather bright side to it at the moment. In South Florida, there are buyers sitting in the wings (or perched on the fence), ready to buy. The real estate market in South Florida has already begun to see housing prices rebound – especially in the lower priced homes and condos (which were the very first to rebound). That trend actually started just before the fall of 2008 in Miami.
Right now, we have a significant drop in inventory in Miami. That – coupled with the number of buyers out there – has had an effect on our local real estate market. Homes and condos priced below $300,000 are the ones selling best right now. Foreclosures are still a hot item. .. and will likely remain so. If you missed my previous blog on foreclosures and Miami market trends on MiamiRealEstateCafe you can see it here. The number of buyers -looking to buy – is a good indicator as to the future of Miami’s housing market.
Please feel free to call me anytime at 305-793-1365 or contact me here. If you are considering buying or selling real estate in Miami, I’d love to talk with you and answer your questions.