WHAT IS NEXT IN SOUTH FLORIDA REAL ESTATE?

Well, here we are nearing the end of 2006 and what a year it was!

Buyers, sellers, homeowners and real estate professionals all watched as housing sales slowed, prices cooled and the “sellers market” of 2005 returned to a more balanced picture in 2006.

What is next? It depends  on whom you ask. Predicting where the housing market is heading is a popular pastime among real estate professionals, economists, and academics, without forgetting “media experts”. According to the Federal Reserve, the housing market experienced a “widespread cooling”.

Some housing markets have cooled more than others, but dire predictions of a national bust have failed to materialize. On the East and West coasts, some markets, such as Miami, Boston, San Diego, Reno and Las Vegas have experienced serious slowdowns. In contrast, markets such as Tampa Bay, Orlando, Phoenix, Portland,  Virginia Beach, and much closer to us, Port St Lucie, Jupiter and Vero Beach, all have robust housing prices that buck the national trend.

Another  bright spot in the housing sector is consistently strong prices in certain desirable markets throughout the country where demand keeps property values high. We are in such a market!

South Florida is still a chosen destination for retirees, second home buyers and foreigners and Palm Beach is still the wealthiest county in the state.  Scripps relocation  to Jupiter and the decision to form a biosciences cluster in the northern part of the county will benefit us all.

Furthermore, interest rates have remained historically low compared to an average of around 8 percent over the last 20 years. If you have an adjustable rate, interest-only rate or any other “exotic mortgages”, it may be time to refinance and lock in your rate.

 For the last couple of months, I noticed a change of attitude from sellers. Some have accepted the market value of their homes and are moving on, some are still holding on to last year's values. On the other hand, buyers have started to make their moves, taking advantages of the bargain basement prices, the low interest rates and the incentives offered by builders.

In conclusion, real estate is South Florida is healthy and if you are buying for long term, there could be some great opportunities.

Sagine Morgan, 561-809-6592