Here is a great article about the most under-valued markets….. and yes Florida is one of them.
“In Florida, there are many condo developments with listings ripe for plucking, either in bunches or individually, according to Matt Martinez, who represents a private equity group that is investing hundreds of millions of dollars there. He reports that investors are able to make profits of 7% to 8% a year, after all expenses, by buying condos and then renting them at market rates.”
Here is another reason to buy now. “Kostas Kalaitzidis wanted to buy a home when he moved to Phoenix in 2008, but between his modest salary and the expensive market, he couldn’t swing it. What a difference a year makes.”
They sure are. “With his company reporting that foreclosures in Los Angeles were down 20% in April from a year earlier, PropertyShark.com’s chief executive is optimistic that things won’t get that much worse.
“I’m calling the bottom for Los Angeles,” says Bill Staniford, who is based in New York. Foreclosures “seem to be leveling off there. Certain areas have been hit so hard, I just don’t see how it can continue to go that way.”
http://blogs.wsj.com/developments/2009/05/07/has-los-angeles-hit-bottom/
Rents are increasing. According to MarketWatch, Florida is a state hit hard by foreclosures, and now apartment rents there are on the rise, according to a new report released on Thursday.
I think this article below does a great job answering that question. “Call them “the haves” and the “don’t haves.” As in: Those who have to sell, and those who don’t have to. The haves are the distressed sales. These include those in foreclosure, and those in pre-foreclosure “short sales.” Such sales are now booming – at bargain prices. On the other hand, those who don’t have to sell are often hanging on to 2006 prices. And they are hanging on to their homes.
This article gives you 10 reasons why Florida is the place to buy.
http://sunsentinel.p2ionline.com/specialsections/ss/index.aspx?area=ss&type=page&adgroupid=158256
This is a great article about how cheap real estate is in Miami (South Florida in general). “Plummeting prices have also brought investors back into the market, a welcome sign for real estate agents who are depending on them to soak up the excess inventory. Many had been waiting either because they felt the market was overpriced or because they lost their shirts in the crash.”
http://money.cnn.com/2009/04/09/real_estate/miami_housing_prices/index.htm?postversion=2009040905
I guess a lot according to The WSJ. “Falling home prices are spurring an increase in all-cash home sales in markets that have been hardest hit by the foreclosure crisis, an indication that bargain hunters have descended on the markets looking for deals. Homes financed with cash comprised one-third of sales in Phoenix last month, up from 19% one year ago, according to a report by Raymond James & Associates Inc. In Sacramento, Calif., all-cash sales accounted for 24% of total home sales last month, up from 8% in January 2008 and 3% in January 2007, according to the Sacramento Association of Realtors. Sacramento and Phoenix have each seen home prices fall by one-third in the past year. Cash sales are up even more in many Florida markets. In Miami, cash offers accounted for 30% of sales last month, according to a report by Thomas Lawler, a housing economist based in Leesburg, Va. That share more than doubled in Gulf Coast communities such as Punta Gorda and Englewood, Fla., where cash financing accounted for 65% and 60% of sales, respectively.”
http://online.wsj.com/article/SB123552303469165085.html?mod=todays_us_money_and_investing
This is a must read article below from The Wall Street Journal. Homes are more affordable and interest rates are low. Now is the time to buy!!!
“The new buyers are being lured in by home prices that are down about 25% from their peak levels in mid-2006, according to the S&P/Case-Schiller Index. In some markets, prices have dropped even further — slumping around 40% in Phoenix, Miami and Las Vegas. Lower mortgage rates have also helped make real estate more affordable, and as houses languish on the market longer, more homeowners are willing to negotiate. With Congress considering plans to sweeten a tax credit for first-time home buyers, the picture could get even brighter.
“Buyers are now coming back into those hard-hit markets to take advantage,” says Lawrence Yun, chief economist for the Realtors’ association. “It’s a buyer’s market.””
http://online.wsj.com/article/SB123431356988570855.html?mod=todays_us_personal_journal
Located in South Florida, Justin Miller has established himself as a leader in the mortgage community for his expert advice and understanding of the current real estate climate. Contact him.
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