what does everyone think is going to happen with the real estate market?

Question

what does everyone think is going to happen with the real estate market , i just sold a home on long island for a nice profit about 2 months ago , thank god , it was not an easy task , but now i want to buy in south florida weston in broward county but it seems lots of sellers there are in denial and they still feel they can get 2005 prices , how long should i wait before i buy and

Answer 1

I've been investing between Europe & Florida for circa 20 years and I head three syndicates of investors. One thing's for sure. There's always a silver lining in real estate if you look long and hard enough for it - good or bad times.

Using our European connections, we are able to get deals not available to people in the US, simply because if they knew about them the market could tumble even faster. It has to be said this always happens during a down market. Absolutely anywhere in the world where builders find themselves stuck between a rock and a hard place.

Not certain about Weston right now but there are deals floating between 15% & 50% off list prices which have already been lowered. Why SO low? Well, the credit crunch is hurting buyers and in turn the banks are nervous about developer loans taken during the boom times.

Unless you're able to buy in bulk most of these deals are not on the table of course. Developers usually trade - and trade fast - with syndicates or networks able to deliver.

However, it may well be worth opening a dialogue at senior level (certainly not their Realtor nor the sales manager) and you might just get 15%-30% off. Definitely worth a try.

A word of warning however. When buying at discounted rates I ALWAYS conduct a due dilligence report for myself and colleagues. Why? Anyone offering big, VERY BIG discounts on off-plan projects might also be contemplating doing a runner. In which case it'd be a great way to lose your deposit - escrow account or not. I know of several people this happened to in Orlando last year and where the developers contract permitted him to transfer from one escrow to another for 'expenses.' He ran with the expenses of something around US $6M.

That said, I'll definitely be taking a look into Weston myself now.

Best of fortune to you...

Answer 2

Matthew said it best. The market will probably continue losing value for a little longer before eventually stabilizing. Then after a period, it will begin to move forward again. Each area will be a little different as even now some places in the country are experiencing increased values while ares like Fresno CA are feeling a higher drop in prices and are expecting a greater number of foreclosures than other cities.

Depending on your needs and what you find, you might want to extend your search for the best deal over a few months or a little longer unless something great comes along. The market isn't going to turn around over night and so there is very little risk that you will miss out on the "rock bottom" prices. But if you are needing financing, you might want to keep an eye on rates.

Answer 3

Most sellers everywhere are still in denial and still think they can get 2005 prices. But not all are. Look hard for good deals, because they are out there. It is a buyer's market and you are in the driver's seat. You may need to make 3 or 4 low-ball offers before someone accepts one, but try hard and you'll make tens of thousands of dollars.

My prediction is that prices continue to drop for 6-12 more months, then stagnate for about 3 years, then begin a normal (3-5%) appreciation from that point until the next big spike in about 10-20 years. I think prices will hit 2005 levels again in 2011 or 2012.

Answer 4

it has not anything to do with the media it has to do wit the truth that such a lot of humans introduced overvalued ( learn puffed up by means of mortgage marketers, truly property marketers and speculators ) estate in a panic ( purchase it now or you can by no means get in ) mode with dicy loans, and now the invoice has come due as the various dicy loans at the moment are changing to ARMs at awful charges and as a result the upward push in foreclosure, so you might have too many humans looking to get out in their debt, as a result flooding the marketplace with too many listings, and it is only going to worsen, you all equipped have Ameriquest submitting for chapter security ( the largest lender of sub top loans ) HSFC and an additional are doing awful as good as their portfolio losses mount ( because of shock.. foreclosures and lates !! ), enterprise housing begins are down 17%!! a giant drop because the developers over constructed deliver for a man-made call for and a few sizzling places ( Vegas, Ca, Florida ) complete initiatives are being canceled as among the condos mission there have been speculator centered ( despite the fact that they preferably didn't wish them there within the 1st location ) the Real Estate marketers, mortgage marketers and every person else will consistently inform you in any other case, considering the fact that of direction they make a residing promoting, no longer telling the reality, they don't care approximately you as soon as the sale is made and thy have made their fee, they are going to no longer support you from your monetary mess when you obtained into it ( with their support of direction ), so by means of their common sense they ought to stay positive, they've no alternative however the economic climate and useful does no longer lie ( the latter tracks foreclosures charges national ), nor do chapter filings, and industrywide layoffs, the get together is over and any individual has to pay for it. The enterprise has a vested curiosity in telling you now's the first-rate time to shop for, they had been additionally the identical organization of idiots who informed you to shop for now or by no means get into the housing marketplace once more and fairly did not anything to include the speculative bidding in truly property for truly 1st time house owners at the govt's dime ( wherein essentially all of that low cost cash got here from to start with ) definite it made a pick few very wealthy ( people who had been within the begging of the growth after which obtained out ), maintain in brain i went via the final growth and bust ( fueled by means of aerospace task profits, then losses ) and again then truly property and others had been making the very identical argument and financed every person with unusual loans ( balloon repayments someone ? prime ARMs ? ), so just like the announcing is going the extra matters difference the extra they keep the identical do not permit someone else inform you one-of-a-kind lest thy have a vested curiosity BTW the identical assertion used to be made approximately the dot come growth and bust, a few mentioned it right here appropriately approximately the basics and the realestate marketplace has no longer had it in a at the same time

Answer 5

Some sellers are holding out for 2005 prices, but those folks can look forward to alot of days on market. Savvy buyers are shopping around, looking for those diamonds in the rough. They are out there, some sellers are eager to sell and willing to look at any offer.

As you said, not an easy task, but it can be done.

Good luck!

Answer 6

DING! You said the magic word," it was not an easy task."
Real estate investing is for the pros.
My own advice, don't wait too long, the market will rebound.
Of course, if my advice were that good, I'd be making a fortune flipping houses.

Answer 7

I don't know if it is necessary to wait, I'd keep looking, but do your homework as to the location of your next home in Broward County. Make sure to check crime in the area before you make an offer.