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. Â
“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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