Is the U.S. housing market’s unparalleled crash since 2005 an opportunity or is there a greater danger ahead? We frequently comment on the U.S. housing market in our daily Benefit Confidential e-letter, offering our real estate advice. Is it time for real estate to be purchased? Where are rates for housing headed? In 2005, the U.S. housing market begged our readers to exist. It was the best advice we’ve ever gotten on real estate. Today, to continue offering our readers timely real estate advice, we regularly track house prices in major American cities, mortgage rates, interest rates and home building stocks. If you are thinking about purchasing a holiday home, investing in rental property, or simply searching for the right time to step into this market, look for timely real estate advice at Benefit Confidential. If you would like to learn more about this, please check out PMI Merced – Real estate rental agency.
In my view, there’s no question that the real estate market has bottomed out. In this recession-hit-hard area, I’m in Miami this week trying to pick up some “deals” and I’m starting to see some changes in the real estate marketplace.
I want my dear readers to be mindful of two big changes in the property market:
– While there is still a surplus of property (condos and holiday homes) on the market, rates have stopped dropping because international investors are buying offers in the marketplace. In my circle of associates, Florida and Arizona are the locations where real estate investors buy in.
– Bank-foreclosed transactions and assets about to go through foreclosure (also known as ‘short sales’) are being purchased with cash by buyers. No funding. If you see cash buyers, that typically means patient cash that now thinks this is the time to buy. The pressure to sell also does not extend to cash buyers. It is generally an indication of a bottom in every market when cash buyers come in.
The more you go inland (away from the ocean) in Florida, the more real estate prices have fallen. Inland property selling at half the price it sold at during the height of the property market in 2005 is normal to find. There is a wealth of products and cranes continue to cling through the roof of unfinished apartment buildings.