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
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