Two questions we Realtors get asked all the time are:
1. How is the market?
2. Do you think prices have bottomed out yet? (Loosely translated, this means “Is this the right time to buy?”)
First, let’s assess the market …
Today’s latest statistics from the Florida Association of Realtors show that home prices declined in April across Broward and Palm Beach counties while a recent surge in sales continued. This shows that prices have come down significantly enough that a strong percentage of Buyers are now moving forward to buy.
Broward’s median price for existing homes was $177,000, down 2% from a year ago. However, Broward home sales inched up 2% from last April. County condo sales rose 8% last month, when 1,645 units changed hands.
This means that although prices are at an all-time low, at the same time, there is an increased demand for homes, more so in some areas than others. This is a good indicator that there may be a decrease in the number of homes available for sale in the coming months, which could cause escalating home prices.
Within the Industry, we are seeing a great increase in the number of Foreign Buyers, many of whom are willing to pay cash for the property for investment. This will only further impact the Home Buyer looking for their long-term home, as the demand from Foreign Buyers directly affects availability and prices.
We do know that the Foreclosure Market is still uncertain, but when you combine today’s low property values with mortgage rates that are at a historic low, we really have to start to weigh all the options.
There is always the possibility that the foreclosure market could release more properties into the mix, further affecting property values; but the experts in the Mortgage Industry keep warning that interest rates cannot and will not stay where they are, and many are predicting rapidly rising interest rates within the year. Waiting for lower property values could cost you a really comfortable, affordable interest rate. You really do have to weigh one factor against the other.
As we say in Real Estate, the most important feature of a property to consider is Location, Location, Location. Properties offering Buyers the best lifestyle choices are leading the market right now, as today’s Buyer is more concerned with quality of life than the size of the home. Home Builders are seeing this shift first-hand and the era of the McMansion is definitely over.
For example, condos offering close proximity to the Beach, Restaurants and Shops that are also close to business districts are in demand as many seek to live and play close enough to work that travel time is minimal and lifestyle options are varied.
Buyers are looking for the best home in the best area that offers them the best lifestyle for their families and themselves. Affordability is a huge factor for today’s buyer – value for money that allows them to live comfortably, without being house-rich and cash-poor. Homes in move-in ready condition in areas offering the best life has to offer are most in demand, which is an important consideration if you’re thinking about buying, as higher demand always means more competition for available homes.
That being said, there is no question that in Broward County, many HomeBuyers are looking for the best school districts. Forbes Magazine has released their annual review of where will your housing dollars go the furthest in getting your kids a great education. The City of Parkland landed 8th overall across the country – and 1st in the category of towns with homes costing between $400,000 to $599,999.
So if you are looking for a long-term, quality lifestyle for your family, take advantage of this historic time in our local Real Estate Market where price and interest rates offer you long-term stability for an exceptional lifestyle and take a look at Parkland, where the vision of the city is:
“The City of Parkland is a beautiful and green, upscale residential community with small scale commercial villages. Our hometown feeling and excellent neighborhood schools help to make us family friendly. Our residents enjoy an active lifestyle through first class leisure and cultural amenities, and easy movement through our streets and multi-use trails.” (www.cityofparkland.org)
Parkland, FL – Our Hometown…