Good news for the real estate market
I was trading emails with a potential buyer from England today. As you probably know the Euro is very strong against the dollar. For Canadians and Europeans Florida is turning out to be the perfect storm for them. Prices here are down significantly and their currency is very strong against the dollar.
One of the comments I found interesting was, "I find the prices in Sarasota amazing! We should all move to Florida."
One of the comments I found interesting was, "I find the prices in Sarasota amazing! We should all move to Florida."
Foreigners are interested in our real estate market
Prices are down 30%-40% since the market highs of 2005
Mortgage rates are low
Lenders are loosening up credit just a bit (but not too much)
An administration change in Washington will increase confidence with many Americans
There is pent up buyer demand
Home construction is very low meaning few new homes added to the market
With the volatile stock market some people will put their assets in real estate
Property tax relief on the way
Labels: National news, Sarasota real estate news
posted by Marc Rasmussen at
8:25 PM
2 Comments:
Marc said:
"Prices are down 30%-40% since the market highs of 2005."
Prices are down a LOT more than that. Try 50%-60% off the highs.
I've been through open houses in late '05 to early '06 where prices were terribly over done. We're heading for the opposite side of the spectrum, and it presents outstanding opportunities for those well-heeled investors flush with cash.
IMO, the key in this tight lending environment is that only those who have impeccable credit records and cash on hand (the very rich) will be able to capitalize on this opportunity; just as it has always been and always will be - the best opportunities come to those who already have the most.
Marc, just curious, who are you supporting for President ?
ToddinFL
Todd:
Prices are down a LOT more than that. Try 50%-60% off the highs.
That is not true all over. There are segments of the market that have dropped 50% (North Port - I don't work that market). There are also segments of the market that have dropped less than 30% (areas of Longboat Key - I do work that market). If I can find you an example I will make a blog post with it.
Todd said:
"IMO, the key in this tight lending environment is that only those who have impeccable credit records and cash on hand (the very rich) will be able to capitalize on this opportunity"
Obviously, it is much easier for a buyer with lot sof cash and great credit to get a mortgage. However, if you have great credit and little cash you can still obtain a loan. If you have lots of cash and just ok credit you can also get a loan.
I have a buyer right now with little cash but great credit and they were just approved to buy.
I am undecided right now in the presidential race.
Thanks for your comments.
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