Buy or wait (Cape Coral, Sarasota, Fort Myers: mortgage, real estate, foreclosures)

[Familyheart]

I have been looking to purchase a home in the Cape Coral or Fort Myers area. However, some friends of mine said we should wait another 6 months to a year. I can't see prices going any lower than they are now, but I am from Virginia, so what do I know?

Anyhow, I wanted to get the opinions of people with real estate experience or who have lived there a long time and understand that market. Is now the time to buy or should we wait?

[justNancy]

Nobody can predict what will happen in the future. The general opinion around here is that real estate will hit bottom in 2009. Some feel that the slump will end this summer in July or August since it doesn't look as if prices can get much lower. Also, it depends on where/what you are looking to purchase. There are lots of short sales and foreclosures, even homes as low as $100,000, but it depends on the neighborhood, the size of the house, the view, sailboat access, how close it is to shopping, etc. I mean, the multi-million dollar homes are still expensive!

If you contact a real estate agent, you can get a list of homes in your price range. In 2007 I was told "this is the time" by a few real estate agents and there's been a big drop in only 6 months.

[121804]

Originally Posted by Familyheart

I have been looking to purchase a home in the Cape Coral or Fort Myers area. However, some friends of mine said we should wait another 6 months to a year. I can't see prices going any lower than they are now, but I am from Virginia, so what do I know?

Anyhow, I wanted to get the opinions of people with real estate experience or who have lived there a long time and understand that market. Is now the time to buy or should we wait?

We were seriously considering buying in CC or Punta Gorda about 18 months ago. Our realtor told us that the bottom would be in summer '07 & all the deals would be gone by the time the snowbirders came back in the fall.

Obviously, didn't happen.

There are some great deals. Some homes may fall further. No one knows the answer.

What is good for you?

Can you afford what you are buying?

Good luck.

The area still is #1 in foreclosures & ARMs reset again in a few months. It is going to take CC & the surrounding area YEARS to get rid of the inventory. Read an article a few weeks back that Fort Myers had 4 1/2 yrs of inventory.

[justNancy]

Originally Posted by 121804

The area still is #1 in foreclosures & ARMs reset again in a few months. It is going to take CC & the surrounding area YEARS to get rid of the inventory. Read an article a few weeks back that Fort Myers had 4 1/2 yrs of inventory.

Do you have a link to this article? I would love to read it. Thanks.

[121804]

Originally Posted by justNancy

Do you have a link to this article? I would love to read it. Thanks.

I'm gonna say it was Money magazine, but don't quote me on that It's somewhere. Give a few days & I'll see if I can find it.

[Mrs.Bewitched]

I have been living in SWFL for 4 years now and have been renting, due to the fact that we couldn't afford to buy. We have put in a bid, received a counter, countered the counter and waiting for acceptance or counter on that one...and that is because prices are at an all time low. I am not playing the waiting game and see if they go lower. I know what they have been, and know that I cannot take the chance that they go back up to normal, so if I were you, I would buy.

[121804]

Originally Posted by justNancy

Do you have a link to this article? I would love to read it. Thanks.

It's out there somewhere...I will find it...but I ran across this one...

In February, the Cape Coral-Fort Myers metro area in southwest Florida had the highest foreclosure rate in the nation, according to RealtyTrac of Irvine, Calif., which tracks notices of mortgage default, house-auction notices and bank repossessions. The area had a record 3,739 properties in some stage of foreclosure, or one per 84 households -- almost seven times the national average.

Ground Zero for Home Distress - WSJ.com

I have no clue why anyone would worry the deals will be gone by next week...

[justNancy]

Originally Posted by 121804

It's out there somewhere...I will find it...but I ran across this one...

In February, the Cape Coral-Fort Myers metro area in southwest Florida had the highest foreclosure rate in the nation, according to RealtyTrac of Irvine, Calif., which tracks notices of mortgage default, house-auction notices and bank repossessions. The area had a record 3,739 properties in some stage of foreclosure, or one per 84 households -- almost seven times the national average.

Ground Zero for Home Distress - WSJ.com

I have no clue why anyone would worry the deals will be gone by next week...

Thanks for the link.

I printed over 40 pages from the Cape Coral MLS of houses listed between $99,000 and $150,000. Also check out the MLS for Charlotte & Sarasota counties Punta Gorda-Port Charlotte-North Port Board Of REALTORS Lots of short sales & foreclosures listed.

[kdzgon]

Originally Posted by 121804

We were seriously considering buying in CC or Punta Gorda about 18 months ago. Our realtor told us that the bottom would be in summer '07 & all the deals would be gone by the time the snowbirders came back in the fall.

Obviously, didn't happen.

There are some great deals. Some homes may fall further. No one knows the answer.

What is good for you?

Can you afford what you are buying?

Good luck.

The area still is #1 in foreclosures & ARMs reset again in a few months. It is going to take CC & the surrounding area YEARS to get rid of the inventory. Read an article a few weeks back that Fort Myers had 4 1/2 yrs of inventory.

IMO, you cannot paint the entire area with one brush. We closed in early Sept 07, and this board has made me crazy at times, thinking we really messed up. Well, the truth is the price of the same home in the same development is now more than what we paid, and would cost substantially more for the same floor plan in a couple of other developments. At first glance, some prices (again, for the same floor plan) looked to be less, but the reality is while the builders reduced the base price of the homes, they also reduced many of the included" features, making them upgrades instead.

There is no doubt we could find a different home for less money, but we purchased the home that we wanted (at a price we could afford). I don't plan on moving again, so I didn't want to buy on price alone. We looked at as LOT of homes - IMO, many of them would be on the market for much longer than 4 1/2 yrs if they needed me to purchase one. Yes, some homes may fall further, but IMO if you find a home that is perfect for your foreseeable needs at a price you can afford AND it is not a "temporary" move (ie, just a couple of years, such as a military move) you should consider a purchase. On the other hand, if it is not something you absolutely love or if you are not sure it will suit your needs for the foreseeable future, then be patient and wait.

There are some downsides to renting, too so each person must weigh the pros and cons of each strategy, not just base such an important decision on the sale price of a home.

Good luck whatever you decide!

[justNancy]

Originally Posted by kdzgon

There are some downsides to renting, too so each person must weigh the pros and cons of each strategy, not just base such an important decision on the sale price of a home.

I totally agree with you. Internet boards are discussions and never to be used for making important life-changing decisions, but they often provide helpful information that leads to valuable resources. I mean, if you have a pain in your chest or a lump somewhere, message boards might give you some ideas & suggestions, but they're not substitutes for a doctor or an X-ray. The same goes for real estate or any other important decisions. You gather information, do some research, and then try to make a wise choice based on your personal needs.