Fort Lauderdale Real Estate Blog

The 2 most common questions I hear over and over about the Fort Lauderdale Real Estate market are “Is now the time to buy?” and “have we reached the bottom?”

Every day we read and hear about real estate statistics and figures, inventory levels, foreclosures, sales projections and all sorts of experts claiming we’ve hit the bottom, the bottom is near or those claiming the bottom isn’t even close.

So how can you be certain that we’ve hit the real estate bottom? Financial Expert Suze Orman, in my opinion, gave the most clear and concise answer.

During a recent broadcast of her show, Suze explained “the absolute way to know for sure is prices always dictate if we have reached the bottom or not.”

Suze further explains that in her opinion, it does not matter how many properties are for sale, whether inventory levels are decreasing  or any other statistics.  If prices are continuing to decline, we have not reached the bottom.  “It is only when prices start to go up that we’ve reached the bottom.  

“Since real estate is local, it is important to understand what is happening with home prices in the area you want to buy in.  When home prices start to increase and begin to sell for more than in previous months instead of staying flat or declining, then and only then, can you be certain that the bottom has been reached.  No other facts or figures will accurately reveal the bottom.  Prices speak the truth.”

Home prices in Fort Lauderdale have declined on average approximately 30% +/-.  In most areas, prices have adjusted back to 2004 levels.  Opportunities exist today to buy condos and homes for sale in Fort Lauderdale that were considered unaffordable just a few years ago. Unfortunately, obtaining loans to buy these properties is not easy and it appears the government may step in further to ease this burden.

As with any market, in my opinion, the time to buy is not after, but before the real estate bottom has been reached and before the market begins to rebound.  Unfortunately, timing any market is impossible and we won’t know the bottom has been reached until several months have passed and we are well into recovery.

I think it is safe to say that we are much closer to a bottom than we are to the top.  Many buyers feel the same way and are scooping up great bargains from short sales, foreclosures and sellers who just want to sell and have priced their home competitively.

As with any buying decision, before making any sizable purchase, you must look at your own situation.  Do your own homework.  Does it make good financial and emotional sense for you to buy now?  If you will be staying in the property for a long time, even if prices decline a bit further, you may still be well ahead in the long run.

If you are considering buying or selling a home in Fort Lauderdale or buying one of the many Fort Lauderdale condos for sale, contact me today at 954-850-2397.

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Find Affordable Fort Lauderdale-Area Foreclosures

Fort Lauderdale Foreclosures are at an all-time high as well as in other areas in South Florida and nationwide, and they offer the perfect solution for buyers who are interested in purchasing a new home at a cost below market prices. Along with a wide variety of properties, there are several types of foreclosures, including pre-foreclosures also known as “short sales“, bank foreclosures and HUD foreclosures.

When a homeowner is unable to make the payment of the requisite amount in the agreed time period, the property is reposed by the lender and resold in an auction in an effort to recover the amount that was lent.

While many banks and government agencies publish lists of their foreclosed properties, real estate agents can help save buyers money, time and stress when finding and securing a foreclosed home. Realtors can obtain information on foreclosed homes from title companies, lenders and a variety of resources at their disposal.

Realtors can also explain the government auction process and aid potential buyers in the purchase of a government foreclosure home. Quality real estate professionals work closely with banks to sell their foreclosures and put them back in the hands of homeowners. Buyers should chose a Realtor who is very knowledgeable about the neighborhoods they are interested in.

Those interested in purchasing a foreclosed home may also want to check out listings posted online, but beware that many of these Web sites, such as Foreclosure.com, require a small fee. Other Web sites allow buyers to view listings for a short trial period for free. Popular online resources include Hud.org and Realtor.com, and Web sites such as Trulia.com allow buyers to ask questions about foreclosures specific to their city, state or region.

Although challenging, buying a foreclosed property can certainly yield major benefits to homebuyers in search of a bargain. Like many aspects of the real estate world, patience is key. Find a good agent and request a full inspection of the foreclosed home before making a purchase.

While foreclosures can offer great bargains, don’t limit your search for the perfect home. In today’s market, inventory for Fort Lauderdale Homes and Fort Lauderdale Condos is presently at a 20+ month supply without any new homes coming on the market.  Privately held homes are selling below market value and the process is typically shorter than going through the bank.

When buyers go through a bank as oppose to an individual, it can sometimes take a month or two or longer to receive a response to an offer. Short sales are considerably longer.  A good agent should be able to show you a balanced mix of deals on foreclosed and privately held homes.

For more information about buying or selling a foreclosed property in Fort Lauderdale, contact John Sabia today at 954-850-2397 or visit the #1 Fort Lauderdale Real Estate web site.

South Florida May Soon Follow As Equilibrium Nears

The notion of selling a South Florida home in today’s market is daunting for some, if not disappointing for many. A second-quarter report for the Orlando, FL-based Florida Association of Realtors (FAR), however, shows progress being made in several cities throughout the Sunshine State, leaving many wondering when South Florida will follow suit.

In Jacksonville, the median prices of existing homes sold between April and June rose from $185,300 to $191,700, a 3.5 percent increase as compared to the first three months of the year, according to the report.

FAR president Chuck Bonillo calls the new findings positive, noting he expects Jacksonville to lead the Florida market out of its slump. “Realtors are reporting heightened interest from buyers, more business activity and an increase in pending sales,” he states. “Prices also appear to be reaching equilibrium in many areas ─ another encouraging sign that could boost the market’s momentum.”

South Florida, a vibrant mecca for first-time home buyers, foreclosure bargain hunters and real estate investors, reported existing home sales in Fort Lauderdale and West Palm Beach were down 8 and 3 percent, respectively, during the second quarter as compared to last year’s second-quarter figures.

But, even with still-sluggish prices, some experts, such as those with Moody’s Economy.com, predict prices reaching equilibrium this time next year. This could be a result of fewer adjustable-rate mortgages resetting along with a steadily improving job market. A drop in foreclosures could really help jumpstart a recovery, too.

The FAR report presents a positive outlook for the state in terms of existing home sales in the next several months as we see broader gains in the fourth quarter as first-time buyers take advantage of a tax credit made available through recently approved housing stimulus legislation. Some industry insiders predict a change in the market cycle as early as spring 2009.

Moreover, people who are able to buy right now are sitting pretty as interest rates continue to drop and the selection of homes available grows. Today’s buyers have their pick of brand-new homes, not-quite-built homes and older homes in various states of foreclosure.

Home sellers are realizing they can’t get top dollar for their 25-year-old home and they’re lowering their asking price. Cases like these can result in some great bargains on homes in high-end neighborhoods that are priced cheaper than some would expect.

Even if a buyer ends up paying a little too much, it’s worth it if he or she plans to live in the home for the next 15 to 20 years. Buyers should be more cautious about overpaying for a home if they don’t intend on staying in it for very long.

Often times, the media has a tendency to take on a the-sky-is-falling mentality to real estate, painting a picture of a grim market spiraling out of control. The fact of the matter is that it’s unlikely the South Florida real estate market will stay in an ongoing state of doom as long as the long-term outlook for the state and national economies stays positive.

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Short sales are becoming more and more popular as the real estate market in Fort Lauderdale continues in a slump. A Short Sale is a great opportunity for the Florida homeowner who can no longer afford their home to make a deal with their lender to sell for less than what is still owed on the loan. This is an opportunity for the homeowner to sell their home for less than market value and get rid of the monthly payment without having the negative impact on credit that a foreclosure has. While the Short Sale is often referred to as a pre-foreclosure it does not affect an individual the way a foreclosure does.

Short sales don’t just benefit the Ft Lauderdale seller; they are also advantageous for buyers as well. Home buyers can purchase a home for just 60-80% of the market value, allowing them to get in a home for just a fraction of what they would typically pay for the home in a flourishing real estate market. This is a good thing for the market overall because the home never goes into foreclosure and never sits empty. Instead it simply changes hands and everyone is happy.

The process of a short sale or pre-foreclosure is one that takes a bit of work, but if all procedures are followed closely and everyone agrees, then it can typically be finalized in just six to eight weeks.

As “Short Sales” become more and more a part of Ft Lauderdale real estate as well as real estate across the nation, they are a great option for both the troubled sellers as well as real estate buyers looking for bargains.

Contact me if you are considering selling your home short sale or if you are interested in buying a short sale or homes in foreclosure.