Have We Hit A Bottom In The Housing Market?
There is no way to tell and I am not in the business of calling a bottom. What I do know is that in Fort Lauderdale and South Florida home prices are extremely attractive, rates are low, and rents are rising. If you feel secure with your job, have money saved, and will hold onto the house for at least 10 years now might be the best time to buy. Remember, every 1% increase in an interest rate it reduces your buying power by 11%.
In an interview with Robert Shiller when asked about whether we have hit bottom he said “When people phrase is that way, they say ‘we’ve reached the bottom.’ That suggests that we have the expectation of a major turning point right now. But I don’t see that. I don’t see any reason to think that prices are going to start heading up dramatically now. We do have some good news. Permits are up. Notably, the National Association of Homebuilders Housing Market Index is up and that’s a forward-looking index. But it’s not up very much. If you look at the rate of change it looks dramatic but it’s still at a low level.”
I feel he hit it right on the nose. It’s a really good interview and I highly recommend reading it.