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I'm not that familiar with Florida real estate, but I see that prices are going down considerably due to the bust in the housing market. Would this now be considered a buyer's market, or does anyone think that prices will continue to fall?
For instance, I'm looking at a beautiful 3/2/2 in Vero Beach for only $165, which, coming from the NYC area seems like a tremendous bargain. However, if this house will be $150 in six months, I'd rather wait.
And regarding the east coast, which area from Palm Coast on down to Port St. Lucie do most people consider the best? Especially for NYer transplants? I've been looking at all of those areas, and reading all of the posts I can find about them, but there is so much disparity in people's opinions. Like PSL - to me it sounds like paradise compared to Queens, but yet some people have negative things to say about it.
I guess I'm just looking to get a few more opinions.
I'm not that familiar with Florida real estate, but I see that prices are going down considerably due to the bust in the housing market. Would this now be considered a buyer's market, or does anyone think that prices will continue to fall?
For instance, I'm looking at a beautiful 3/2/2 in Vero Beach for only $165, which, coming from the NYC area seems like a tremendous bargain. However, if this house will be $150 in six months, I'd rather wait.
And regarding the east coast, which area from Palm Coast on down to Port St. Lucie do most people consider the best? Especially for NYer transplants? I've been looking at all of those areas, and reading all of the posts I can find about them, but there is so much disparity in people's opinions. Like PSL - to me it sounds like paradise compared to Queens, but yet some people have negative things to say about it.
I guess I'm just looking to get a few more opinions.
What stops you from makeing an offer of $150k today?
If you make an offer you are comfortable with and plan on living in the house that is all that matters. The rest is the fear of buyer remorse or being afraid you didn't get the worlds greatest deal. You don't need the worlds greatest deal just as long as you are happy. The deals are out there you can make offers that reflect next years possible price. People have to get the idea out of their minds a house is an investment, a house is a utility, something you use and get benefits from. Thats where the value is. The same people who are scared to death to buy or even make an offer are the same people who go out and buy a Cadillac Escalade without a second thought. Now there's a good investment, $55,000 and guaranteed at some point to be worth it's weight in scrap. How do they justify that?
I'm not that familiar with Florida real estate, but I see that prices are going down considerably due to the bust in the housing market. Would this now be considered a buyer's market, or does anyone think that prices will continue to fall?
For instance, I'm looking at a beautiful 3/2/2 in Vero Beach for only $165, which, coming from the NYC area seems like a tremendous bargain. However, if this house will be $150 in six months, I'd rather wait.
The subprime debacle in the US real estate market has led to tighter credit conditions, and this has spread nationally and globally also into the corporate credit market. Florida by some measures may already be in recession, certainly the real estate sector is.
Floridians will have the opportunity to vote in a property tax reform. In the short run, it should have a positive impact, in the long run it is probably indifferent as natural attrition occurs among people with the old Homestead protection.
Insurance rates are still sky-high, but if there are no hurricanes this year and next, the problem should abate significantly.
In this context, you need to examine the particular neighborhoods of PSL that you are most interested in to see how the local area has been affected by macro conditions.
Chances are that inventory will remain high for the rest of 2007 and probably all of 2008. Among this inventory, you must seek out the serious sellers by making offers that you believe are reasonable given macro and local conditions.
Whether prices will continue to come down significantly as a general phenomenon is anybody's guess. Another 5%-10% is highly likely, but that may well be within the scope of a reasonable offer below current asking prices. Again, the "trick" is to meet up with a serious seller.
Whether they will generally come off 30%-40% from current asking prices is a much more hazardous prediction, maybe, maybe not.
In any case, the overriding concern should be whether you can comfortably afford a place over the long term, assuming that is your purpose (and not some short-term flip). In this context, saving $15k or so probably won't make much difference if you see a house that you really like and you can probably negotiate that difference anyway under current conditions.
In short, I agree with macguy, if you can comfortably afford it, if you are happy with it, make an offer 5%-10% below asking, and go for it!
Your best bet is to come down and rent for a while (no lack of rentals) and really get a feel for a neighborhood and house you like and act accordingly.
Hopefully other posters will address specific areas from the Palm Coast down to PSL. In the right combination of circumstances, I am sure anyone can successfully deal with most, if not all, of the negatives. Those who are adamant about the negatives have not found the right combination of circumstances. It's that simple and that complicated.
What stops you from makeing an offer of $150k today?
If you make an offer you are comfortable with and plan on living in the house that is all that matters. The rest is the fear of buyer remorse or being afraid you didn't get the worlds greatest deal. You don't need the worlds greatest deal just as long as you are happy. The deals are out there you can make offers that reflect next years possible price. People have to get the idea out of their minds a house is an investment, a house is a utility, something you use and get benefits from. Thats where the value is. The same people who are scared to death to buy or even make an offer are the same people who go out and buy a Cadillac Escalade without a second thought. Now there's a good investment, $55,000 and guaranteed at some point to be worth it's weight in scrap. How do they justify that?
Macguy makes good points and I agree. Also, keep in mind that Vero is one of only THREE cities in Florida that appeared on CNNMoney.com's list of 10 best places in the COUNTRY to still buy or invest in real estate. For some reason, Vero seems undervalued compared to a lot of the state. And, you have nothing to lose by making an offer, they might accept. We just purchased a property in Lakeland, one of the other cities on the list, and made an offer more that 10% below asking, and they accepted, because they were motivated sellers.
So if you see a good deal on a HOME snap it up! It is to live in and be enjoyed!
It's clearly a buyers market and it is a good time to pick something up by the beach. I think we may see a further drop of 5% or so but your mortgage rates are rising so even if the value does drop in the short run, I wouldn't worry too much about it. Also, the lower dollar abroad is creating interest in the housing market from foreigners. All in all, not a bad time to pick up something.
Rent, rent, rent. Come on now...further price reductions of 5%...maybe 10%???
Those estimates make no sense and are not based on fundamentals.
1. The vast majority of sub primes have yet to reset. Google Credit Suisse ARM reset schedule. The wave of resets and foreclosures is barely getting started.
2. Prices are still 5-10 times median incomes. They will meet again one day at around a 3 times multiplier.
3. Insurance is only going up and up, the system is in the red. Hurricane or not, no long relief is possible. Someone will have to pay the tab eventually.
4. The tax reform will work out to amounts in the hundreds of dollars for most folks, meaningless.
5. The effects of inflation for food, gas, etc. is just starting to take money away from what people can spend on housing.
6. My best friend's mother has been in Port Saint Lucie real estate for 30 years. She says this is a mess now and will be a total disaster in 3 years.
7. Foreigners, baby boomers...knock off the nonsense. No one is coming to scoop up grossly overpriced Florida real estate.
Rent....this thing has so far to come down it isn't funny. 5-10%....please, you have got to be kidding. You know what people will be called who buy now at these 'bargain prices'? Dead cat bounce buyers. Because in 3 years these 'bargains' will look like rip offs.
Rent, rent, rent. Come on now...further price reductions of 5%...maybe 10%???
Those estimates make no sense and are not based on fundamentals.
1. The vast majority of sub primes have yet to reset. Google Credit Suisse ARM reset schedule. The wave of resets and foreclosures is barely getting started.
2. Prices are still 5-10 times median incomes. They will meet again one day at around a 3 times multiplier.
3. Insurance is only going up and up, the system is in the red. Hurricane or not, no long relief is possible. Someone will have to pay the tab eventually.
4. The tax reform will work out to amounts in the hundreds of dollars for most folks, meaningless.
5. The effects of inflation for food, gas, etc. is just starting to take money away from what people can spend on housing.
6. My best friend's mother has been in Port Saint Lucie real estate for 30 years. She says this is a mess now and will be a total disaster in 3 years.
7. Foreigners, baby boomers...knock off the nonsense. No one is coming to scoop up grossly overpriced Florida real estate.
Rent....this thing has so far to come down it isn't funny. 5-10%....please, you have got to be kidding. You know what people will be called who buy now at these 'bargain prices'? Dead cat bounce buyers. Because in 3 years these 'bargains' will look like rip offs.
Who cares, you can also go and just kill yourself and you won't have to wallow in constant worry about all your what if's. Rent, for how long, how many years? How about some people wanting to get on with their lives, not everybody is broke and on the skids.
Rent, yea you can't do anything, you can hardly live your life in someone else's house or apartment. Want build a barbecue in the back yard, forget it, hay your kids can't have a dog it is against the rules. I'm sorry you can't park your boat here and please get rid you your kids sand box it is killing the grass. It's not always about money it's about living. Like I say, not everybody is broke.
Who cares, you can also go and just kill yourself and you won't have to wallow in constant worry about all your what if's. Rent, for how long, how many years? How about some people wanting to get in with their lives, not everybody is broke and on the skids.
Rent, yea you can't do anything, you can hardly live your life in someone else's house or apartment. Want build a barbecue in the back yard, forget it, hay your kids can't have a dog it is against the rules. I'm sorry you can't park your boat here and please get rid you your kids sand box it is killing the grass. It's not always about money it's about living. Like I say, not everybody is broke.
Actually I have had so many people contact me in regards to renting their property I am now tracking them on a spread sheet.
I have found they are so over the top willing to say yes to...well everything I want.
They don't care that I have three dogs, one cat, one bird. In fact some have agreed to let me fence the yard for a reduction in the rent amount.
I can say this with complete confidence. The only thing that sellers/bagholder/new landlords care about right now is getting some help paying their mortgage payments.
When they find out that our credit scores are both over 780, and that we have a letter of referral from our current landlord of five years they get very excited. They are very gracious and extremely flexible AND rent prices keep coming down!
Being a tenant with money and excellent credit goes a long way in getting what you want.
Who cares, you can also go and just kill yourself and you won't have to wallow in constant worry about all your what if's. Rent, for how long, how many years? How about some people wanting to get in with their lives, not everybody is broke and on the skids.
Rent, yea you can't do anything, you can hardly live your life in someone else's house or apartment. Want build a barbecue in the back yard, forget it, hay your kids can't have a dog it is against the rules. I'm sorry you can't park your boat here and please get rid you your kids sand box it is killing the grass. It's not always about money it's about living. Like I say, not everybody is broke.
Bravo, macguy 100% agree. There's more to life than $$$.
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