Real Estate and Investment in Today's Market, Is it really a Good Time to Buy?

It is definitely a question of concern that many South Floridians and even International visitors are asking and considering but few are answering. Although 'Flipping Properties' was the thing to do 5 years back, we all know better than to think it would be your best option today. With loan programs and Government aid like FHA and HomePath properties, the better investment in today's market is undeniably the purchasing of a Primary Home for those who have yet to become Home Owners and were not financially tainted by the wave of foreclosures. Another option is the purchasing of a Secondary or Investment property for the sake of Renting as an additional form of income.

However, even with mortgage rates reaching an all time low today at 4.69% to entice buyers and the sale of listed properties; there are many who are still reluctant to buy and are concerned about whether to hold-back on purchasing in hopes that they will be getting a better deal in a few more months.

I find that many home buyers ask me the same question: "Is the market going to keep losing value? Are the prices of homes going to go lower?," in trying to get the best 'Bang for their Buck'. However, in holding-out, they are not taking into account the complexity of the situation that has yet to occur.

Regarding existing Adjustable Rate Mortgages (ARMs) originated during the Boom, economists are anticipating yet another wave of foreclosures that will affect the market once again, creating a greater severity of consequences to not only the lenders, but current home owners as well. This wave will eventually drive current market values down further to what is estimated to be a 10-20%, causing more than 25 Million Home Owners to be 'Underwater,' meaning they will owe more than their homes are worth. Currently, the number of home owners that are underwater is estimated at 13.5 Million, of which less than 10% might qualify for loan modification. Many of these owners will walk away from their mortgages, possibly causing yet another wave that will continue to plague the market. This will therefore increase mortgage defaults which will eventually make it even more difficult for new home buyers to qualify for financing under the market's economic circumstances.

Now, when compared to the recent Real Estate Boom market values of '05 and '06, any property listed in today's market is a steal. (I'm sure that lenders who are flooded with foreclosure deficiencies and setting their REO listing prices slightly lower to generate multiple offers for a better price would agree.) However, what home buyers need to understand is that the Bank Owned Properties (REOs) and Pre-foreclosure (Short Sale) listing prices are typically set at the current market values of South Florida homes, which are the lowest they have been in three decades. What this means is exactly what you hear virtually everywhere now-a-days, and that is:

"It is a Great Time to Buy."

There are more Homes on the market, making them more affordable and thereby creating a Buyers Market. Now is the time for buyers to take advantage of the situation before many lose the opportunity or chance of owning their own home before the market endures further economic hardship, thereby making it more difficult to own later on down the road. So for those who continue waiting, what are you really waiting for?

Featured Property

763 Pennsylvania Ave

A Stunningly Renovated Contemporary Condo-Hotel Studio in the heart of South Beach! Completely furnished, this property gem includes a Solarium Terrace overlooking Washington Avenue with jacuzzi and sun-bathing lounge area! Perfect for relaxing or living it up the SoBe way!

-24-hour Front Desk, Gym, High-Speed Internet, Cable,

Phone and Electricity included! Great Beach Investment

property for yourself or In-House Rent by Day Program!