Is the Housing Bottom Here?
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From CalculatedRisk.com:
The Housing Bottom is Here
There have been some recent articles arguing the “housing bottom is nowhere in sight”. That isn’t my view.
First there are two bottoms for housing. The first is for new home sales, housing starts and residential investment. The second bottom is for prices. Sometimes these bottoms can happen years apart.
For the economy and jobs, the bottom for housing starts and new home sales is more important than the bottom for prices. However individual homeowners and potential home buyers are naturally more interested in prices. So when we discuss a “bottom” for housing, we need to be clear on what we mean.
For new home sales and housing starts, it appears the bottom is in, and I expect an increase in both starts and sales in 2012.
As the first graph shows, housing starts, both total and single family, bottomed in 2009 and have mostly moved sideways since then – with some distortions due to the ill-conceived housing tax credit.
New Home sales probably bottomed in mid-2010 and have flat lined since then.
To Buyers:
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At Rua Realty we take pleasure in assisting Buyers find their home, financing, contractors, and all necessary aspects of the process to lead deals to closing. With the joy of finding a home also comes the frustration when either Buyers can’t find exactly what they are looking for or they evaluate and reevaluate and end up losing out on a great home. This is normal. With my experience I have developed a sense as to which homes are deals and will be sold relatively quick. I never “hurry” or pressure my clients to purchase a home, unless necessary…
To Buyers (especially first-time homebuyers), I understand your frustration in the current home buying market. It is not easy and it will possibly get a little more difficult as supplies of homes have sharply decreased in comparison to 2008-2010 levels (2009 held a 4 year supply while currently there is 6 month supply of homes in Miami-Dade County). Couple these stats with the 2008 and current credit crisis and it remains difficult for buyers to obtain financing resulting in a “cash buyers” market rather than a “buyers market” and in some cases a “sellers market.”
It is common for every homebuyer especially first-time homebuyers to expect to purchase the “perfect” home. My advice is that no one home will be perfect and there will always be some work required to make the home your “home”.
Our goal remains to always find the “right” home that makes the most sense for our clients.
Please contact one of our agents if you have any questions or comments regarding your home search or any real estate related concerns.
U.S. Real Estate Cheap in Relation with Other Countries
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Even as the world economies remain unstable the U.S. real estate market is a less expensive and affordable option to foreigners that can afford to purchase second homes and investment properties given the circumstances. In particular, Miami has seen an increase in the volume of transactions from foreigners ranging from Russia, Canada, Europe and Central & South American Countries. The positive affect has been a decrease in single family and condominium inventories leading to slight rise in values (depending on the area) benefiting an industry that has been at the forefront of the recent financial crisis.
Bring on the Foreign Buyers!
Latest Trends (Starter homes in the Gables, Grove and So. Miami)
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For the last several months we have noticed a trend in the lack of inventory within the $250,000 – $400,000 homes in the Gables, South Miami, Coconut Grove markets. Couple this shortage with a higher demand from consumers that have sat on the sidelines during the downturn, cash investors, & foreign buyers and the result is the potential increase in property values. Homes, particularly the ones priced well, are “flying off the lots”, making it very difficult for first-time home buyers and standard buyers to compete in this market.
In order to stay in the game buyers should always look for an agent that will work tirelessly and diligently from start to finish, including the search phase all the way through to the transactional/closing phase. As stated previously, the landscape for buying is ripe but very competitive, having an agent that will deliver and stay focused during the entire process is an essential element to your home search and purchase.
If you are in the market to sell during this time, it is essential to hire an agent that will be honest and direct in their valuation of your home as the initial asking price will have a long lasting effect on perception and will eventually play a vital role among buyers’ purchase decisions.
As always please do not hesitate to contact one of our agents to assist you with any of your real estate needs.
Recent Miami-Dade Sales Stats
