No Uniform Recovery For Housing?
I find the media to be very funny. Over the past few days I have read so many articles talking about how now is the time to buy, we are at the bottom, it is better to buy then rent, home affordability is at its highest level, etc. and then today I see this article.
I would imagine this is the perfect example of why Mark Twain said “If you don’t read the newspaper you are uninformed and if you do read the newspaper you are misinformed.”
I have mentioned to many that I don’t think we have hit a bottom in South Florida but with prices, interest rates, and the first-time homebuyers tax credit, it is a great time to buy. I try to develop my own opinion from everything I read instead of pawning it off as my own idea. It’s like the scene in “Good Will Hunting” where Matt Damon is in the bar and the guy with the blonde hair and pony tail is reciting a book verbatim and Matt tells him what page that paragraph came from in a book.
Anyway, you can read this article and come to your own conclusion but as it pertains to South Florida, I found this to be very interesting and true. “Such distressed sales, mainly foreclosures, are discounted on average 15% to 20%, dragging overall prices lower. Granted, that may set the stage for higher prices when foreclosures slow, but there still is little sign that inventory is near equilibrium.”
The reason this really jumped out at me is because the article mentions how two thirds of South Florida’s sales are foreclosures and short sales and I truly believe this will be the case.