Seems there are always ramblings in the news about the state of the real estate market – is it up, is it down, do the Hokey Pokey and shake it all around!
REAL ESTATE IS LOCAL. There are no two neighborhoods exactly alike, so how can there be two “markets” exactly alike? Even if we build 2 homes exactly alike, and we place one on a beautiful lake, and the other next to a landfill, it is easy to see that one on the lake would be more desirable and have more value than the other.
At any given time, there will be some neighborhoods more desirable than others – thus more in demand. Higher demand means higher price. People have to have a place to live and they will live in the best place they can afford.
As prices came down in the market, everyone began to realize they might be able to finally afford a better place – so they “moved up” and the demand increased for the better neighborhoods. So, it follows that the better neighborhoods began to recover sooner due to increased demand, and the worst neighborhoods suffered as people moved away.
So, Florida can be in higher demand than say Minnesota. South Florida can have more demand than Tallahassee. Maybe some people prefer coastal Palm Beach to rural southwest Miami-Dade County. There will always be a preferred neighborhood and price will reflect that demand.
Prices in most South Florida neighborhoods are stabilizing, and the better neighborhoods are starting to increase in value. It is expected that interest rates will creep up this year to the high fives or more. Loans will become harder to get as banks become more conservative to meet government regulations.
If you are going to buy, now is the time!
Feel free to post any questions you have and I will try to get them answered in the next post.
Peace,
Chuck
If you know anyone struggling with mortgage payments, we can provide solutions for homeowners facing market hardships.
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