It's promising that the April Issue of Fortune magazine is touting "The Return of Real Estate", pointing to several major indicators which show that the real estate market is poised for a turn around. The article goes on to say "Forget stocks. Don't bet on gold, after four years of declining home prices, the most attractive asset class in America is Housing. It's time to buy again." Major housing price adjustments appear to be in the past, up in the bubble years of 2002 through 2006, and down during the correction of 2007 through 2010. I think we have seen the end of real estate white knuckle rollercoaster ride. I expect slow and steady improvement to be the new real estate norm (as its always been with the exception of the bubble). With low prices and low interest rates, buyers are using only 10% of income to service payment of mortage principal and interest (note, other housing costs such as HOA fees, Insurance and Real estate taxes are not included in this figure). The key is that we are down from the 25% figure that was associated with the bubble. Home affordability has never been better. Anyone with a steady job and good credit can well afford to own a nice home at today's great prices. Despite the recent slowing of sales after the end of the Government tax incentive last year, buyers are back. In Florida, average quarterly sales bottomed neared 225,000 in 2007. However, 2009 and 2010 saw average quarterly sales of 350,000, with peaks above 400,000 per quarter. Sales are back! In 1Q10, there were 3,049 Single Family Homes sold in Broward County, in 1Q11 there were 3,060 sold. The mix of sales was consistent year over year, at 20% Short sales, 35% Bank owned, and 45% Owner sales. I expect this trend to continue, with 2011 sales on par with 2010, and prices showing small variations for at least another year, two or three until the distressed property inventory is absorbed. I believe that the NAR data supports the Fortune magazine claim that "the most attractive asset class in America today is Housing." Whether upsizing, or downsizing, or investing, the market is in your favor. It's time to buy again! I am here to help!
Company: United realty Group
Phone: 954-249-7943
Email: dalbornoz at aol dot com
