Do I Enjoy Doom and Gloom?

I guess from reading my posts it may seem that I enjoy every news report about Florida's slumping real estate market that is released. As a resident of Florida, I am saddened by the State's economic woes, it affects every one of us when unemployment keeps rising, services are being cut in every sector and home prices continue to spiral downward.
But, as a Realtor focused on helping buyers, I do see the current economic trends as a huge opportunity. May of my buyers who are purchasing second homes in Florida would have held off buying for 5 - 10 years because they feel they are still quite a way off retirement age to be able to utilize a second home to the fullest extent possible. With prices so low though, they really feel that they cannot miss out by waiting and are diving in and grabbing real bargains.
A recent Survey by USA TODAY showed that eight in 10 economists surveyed have downgraded their economic outlook amid the European debt crisis and a flurry of disappointing reports, but nearly all expect the nation to avoid a double-dip recession. The quarterly forecast, conducted July 15-21, was decidedly gloomier than April, when the recovery was gaining steam and most experts were ratcheting up their estimates. The area of greatest concern is jobs, most ecenomists don't believe we'll see new job creation at a sufficient level to balance the jobs lost until 2014.
Bottom line is that until the economy improves housing prices will remain low and buyers with cash will continue to find real bargains.
The economic downtown is great news for some. If you are considering the purchase of real estate, this could be the best time ever.
Call me:
Tali Wolder
561-866-9372
http://www.talisellsflorida.com/
tali@floridianinternational.com

Cash is King!

The real estate market here in Florida continues to struggle, it seems that there is no end to the downward spiral in prices. And buyers are becoming scarce. With the end of the government sponsored First Time Homebuyer credit, the brakes have been put on sales.
I'm working with a client who is looking in a rather high end country club community deciding whether to purchase a resale or a home from the developers. The listing agents and the developer call me constantly to see what they can do to get a deal done. Even just 3 months ago, no-one was willing to negotiate.
All this is quite strange considering that prices are at their lowest in over 10 years and money is really cheap right now. I guess the 2 major issues are that financing is tough to get unless you have stellar credit and great job security and then, the cash buyers and there are many, are in hurry and are biding their time until the right deal can be had.
I know that summer does tend to be slower than the rest of the year for home sales and I do believe that we'll see a significant uptick as the year closes but if you want to get a great deal, don't wait, as a buyer, it's definitely the best time.
Call me to find out what deals are available.
Tali Wolder
561-866-9372
tali@floridianinternational.com
http://www.talisellsflorida.com/

Insurance Premiums Hit Florida Homeowners Hard

Who can ever understand politics. Charlie Chris vetoes legislation that makes it easier for insurers to raise insurance rates, so why is everyone getting renewal notices from their insurance companies with rate increases from anywhere between 15% and 80%. Yes, that is no misprint, a Lighthouse Point homeowner, said State Farm increased her homeowner insurance premium 83 percent, from $3,395 to $6,214, even though her home was completed in 2005 and has hurricane impact windows and other features fortifying it against storms.
The Sun-Sentinel states that in the past 12 months, the Office of Insurance Regulation approved about 140 residential insurance rate hikes, ranging from less than 1 percent to 29 percent. Some individual policyholders’ bills went up more because the approved rate increase is a statewide average. The increases were approved after many insurers argued that efforts made by the state Legislature to cut premiums in 2007 and 2008 had left them unable to keep pace with claims and other costs.
As with all things in life, there is always some bad mixed in with the good. Living in Florida has so many pleasures, least of which is the year-round great weather. But insurance premiums are the bane of our lives here. There are many ways to reduce premiums - always work with an insurance agent that will give you all the facts. My husband and I managed to almost halve our premium when our agent explained how the different coverage options worked.
Let me end of my weekly mantra this time of the year: If you are considering the purchase of property in Florida, summer is the best time to buy as prices are definitely more competitive and Sellers more negotiable.
By the way, if you are looking for a gorgeous pied a terre in a quiet community in Boca Raton, consider Rainberry Park.
If you want to see what's available in real estate in Boca Raton, call me:
Tali Wolder
561-866-9372
tali@floridianinternational.com
http://www.talisellsflorida.com/

Could the Oil Spill be Good for Investors?

Pretty awful to consider but the BP oil spill could herald a new round of real estate price crashes. There is no doubt that Florida is the archetype boom/bust state. The economy here reacts dramatically to any new event and the oil spill is no different in how it will affect industry, real estate, and business generally in Florida. There is already a decline in home sales on the West coast and in the Panhandle and this in spite of the fact that there has been very little evidence to date that the oil spill has affected our coast, the real estate industry is already feeling the pinch with cancelled contracts and buying staying away. There have even been a number of real estate businesses putting in claims for lost revenue with BP.

While this is all really bad news for Florida and the local economy, it does spell opportunity for investors and those who have been thinking about purchasing a second home here but have not yet made a move. It definitely makes sense to take advantage of market jitters to buy real estate. Foreclosures or REO properties still offer excellent value and Sellers will be far more willing to negotiate if sales and prices continue their steady decline. Many of the agents with listings in high end country club communities have convinced sellers to drop their prices. This has happened in Mirasol, Broken Sound, Ballenisles, Mizner, Woodfield and many other communities.

Don't sit on the fence, make a commitment to take a look at what's available and buy now. Many of my clients from areas such as Pikesville and Baltimore in Maryland or Tenafly and Short Hills in New Jersey are in their 50's. Not ready to retire yet and would not have thought of purchasing their second homes at this stage of their lives but realize that the deals they can get now will not be available in 10 years time.

I can help you find your dream home in Florida or an excellent investment property to rent out. Call me and let's talk.

Tali Wolder
561-866-9372
http://www.talisellsflorida.com/
tali@floridianinternational.com

Market Still Flooded with Foreclosures

I predict that the current foreclosure trend is going to continue unabated for at least the next 2 years. New figures from RealtyTrac show that of all the homes sold in Florida in the past year, over 30% were sales of foreclosed homes. And, these homes tended to sell at over 25% below market value.

For Sellers, this is not great news. Add to the list of foreclosures, the huge number of short sales and it's easy to see why anyone who does not have a mortgage or has a small mortgage, is struggling to get a fair price for their home. I recently spoke with a client who purchased her home in Parkland for about $900,000. She has a mortgage of over $700,000 and current fair market value is around $450,000. She has no choice but to short sale her home.

Buyers on the other hand have the opportunity to really buy well. There is no better time to purchase a second home or investment property than right now. If you are close to retirement age and have been sitting on the fence wondering if you should just go ahead and buy your second home now, don't spend too much time thinking about it. I recently sold homes in the same country club community to two diferent buyers. Both purchased for a little over $500,000 from Sellers who had paid 30-40% more in 2005 and 2006.

I believe prices have bottomed out and are going to stay at this low level for quite a while. This brief table shows a few examples of how pricing has changed in certain communities:

Of significance here is the sharp pricing in pricing to 2006 and then the decline from then to 2009. I know a client is getting a great deal if he or she is able to purchase a home at levels that were paid in 2001/2. If you would like me to analyse and community for you, give me a call and I will get the data to you.

As always you can reach me at:

Tali Wolder

561-866-9372

tali@Floridianinternational.com

http://www.talisellsflorida.com/