Well, which direction is it for real estate?
I have consulted with the pundits, examined all the figures
and looked into my crystal ball……
And here are my conclusions:
The market is going up because…..
1. Inventory is the lowest I’ve
seen in Colonial (57 total available) and in the County there are only 7,485
2. I have observed that many who
had stalled their retirement move to FL are now starting to move on their
plans. With no FL State income tax and our wonderful weather, all those
baby boomers will finally arrive in the Sunshine State.
3. Interest rates are as low as I have seen in my lifetime and the FED promised to keep it low for 2 years.
4. Foreign currency has gained against the dollar which makes our real estate more attractive for our
Canadian and European buyers.
And the data shows that our average price in the County has risen from $137,034, to $165,243, a 20% increase in price year over year.
But the market is going down because….
- New laws are going into effect adding a 3.8% tax to the gain on home sales.
Here’s a link to the details: http://blog.registeredrep.com/von_aldo/2010/10/04/is-there-really-a-home-sales-tax-hidden-in-obamacare/
- Home sales are slowing. The current 3 months number of homes sold in the
County was only 4,274 as compared with 4,919 last year for the same time
period. That’s a 14% drop.
- Economic and political uncertainty is causing reluctance in the market.
- With roughly 25% of the homes underwater on their mortgages, some project another
round of foreclosures. http://money.cnn.com/2011/02/09/real_estate/underwater_mortgages_rising/index.htm
- Unemployment is an issue that looks like it will continue to dampen the market.
So is that all now totally clear? I suggest we should
all have a nice glass of wine and enjoy your day!
Remember, I’d love to work on your needs and please send
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Certified Shortsale Professional
Web Site www.QTeamRealEstate.com
“If your ship doesn’t come in, swim out to it!”