There are seven reasons why this holiday season is the perfect time to make a great deal in Miami real estate. The time to act is now because the opportunities we have today may not be around for much longer.
1. Right now there is an abundance of good quality properties on the market at "never-again" prices. The Southeast Florida Multiple Listing Service shows that, today, there are available for sale 8,740 single family homes with a median price of $290,000 and 16,354 condos with a median price of $209,900. Commercial properties are also plentiful: 3,706 commercial properties of all types with a median price of $164,900 and a maximum list price of $22,500,000 are available. With so much real estate to choose from, investors can find a good deal.
2. Prices of single family homes and condos are stabilizing due to increasing absorption resulting from first-time and moving-up buyers taking advantage of better affordability. Also, the extension of the home buyer tax credit until April 30, 2010 is encouraging sales of homes and condos. Similarly, commercial property prices, although still dropping, are not expected to result in the blood bath that was originally expected, due to recent government measures that give banks flexibility in the treatment of delinquent commercial real estate loans.
3. Residential mortgage rates are on an upward trend, as reported by Bankrate.com. The interest rate for a 30-year mortgage is now 5.13 percent, 0.09 percent higher than the previous week, thus increasing the cost of ownership. On the commercial real estate side, however, loans are not readily available since lenders are favoring the most creditworthy applicants and then with very low loan to value ratios. In this environment, therefore, cash rich investors can negotiate hard for price reductions and advantageous conditions.
4. In view of new government regulations fewer distressed properties will go into foreclosure. Loan modification and foreclosure prevention programs help keep owners in their homes. Along the same lines, owners of commercial properties with delinquent loans are finding that lenders are scaling back their aggressive foreclosure actions in favor of loan modifications or short sales.
5. The economy is showing new signs of life. The most recent jobs report by the U.S. Department of Labor showed a spectacular decline in the number of unemployment claims. In addition, the funds from the stimulus packages will continue to make their way through our economy, eventually creating needed sparks of activity that will boost real estate sales. An increase in demand will translate into rising prices.
6. At this time of the year there is less competition for properties since, distracted by the season's activities, potential buyers postpone their efforts to look for properties, make offers or enter into negotiations.
7. This is the perfect time to make an awesome gift to a special someone. Who wouldn't like to receive some great real estate this holiday season?