It's been a pretty long time since I've visited my blog, and quite frankly I feel pretty darn guilty about it. With so much happening in the real estate industry it's hard to fathom that I should have writers block. Oh how fortunes have changed in such a short period of time! Home sellers are now back in the driver's seat, and multiple offer scenarios for well-priced homes are once again the norm.
So are we creating another bubble? Depends on who you ask actually. My observations are as follows: 2013, particularly the summer, was crazy. There was just so much demand and so little supply that most areas in South Florida saw double digit price increases over 2012. Then, as has been the historical case, things slowed down in the last quarter. However January 2014 is off and running! This year will continued to see, albeit tempered, price appreciation in most markets. Why tempered? Well, for starters interest rates will continue to gradually rise as the Federal Reserve begins to curtail its purchase of mortgage backed securities. Additionally, a fair amount of the new developer inventory is beginning to come online thereby absorbing some of the demand for housing. As for buying opportunities, they're still certainly out there though get ready to "fight" for them; there's no room for low-ballers or week long negotiations in this market. Remember that time is the enemy of all real estate deals. Highest and best is the order of the day!
Until nest time; thank you for reading!
Tuesday, January 21, 2014
Tuesday, October 29, 2013
Wednesday, August 28, 2013
Predictable Equilibrium Part Deux
Just thought that you'd might like to know that I've noticed
a small change in the Country Club of Miami these past few weeks. There have been at least four price
reductions of on market listings in the neighborhood. Now this is not necessarily a cause for alarm,
yet it is indeed an indication that the local market may have gotten a little
ahead of itself. The recent interest
rates increases could bear some of the blame, and the imbalance of supply and
demand that's driven the double digit increases over the past 18 months seems
to be easing. One of my colleagues that
works in West Broward has also noticed this in his local market. That being said, I feel that we're on the cusp
of a return to a more balanced market with historically conservative appreciation
levels , heading towards a phrase I coined in 2009; predictable equilibrium. Here's
where I wrote about this back then in my blog: http://bitsaboutrealestate.blogspot.com/2009/07/predictable-equilibrium.html
Tuesday, August 6, 2013
Poppin!
What can I say, the real estate market is popping! My
big challenge today is simply in finding homes for all of the prospective
buyers out there. Yet, industry experts agree that it won't stay this hot
for much longer. The double digit price increases that we're experiencing
right now a function of a noticeable imbalance between supply and demand.
Yet as more homeowners are now in a positive equity position thereby allowing
them to move up or down, interest rates continue to creep up, and much of the
new home inventory gets closer to completion, we will be in a more balanced
marketplace as we enter 2014. And price appreciation will naturally abate
to a more historically relevant rate.
There is a unique window of opportunity in today's marketplace to sell for top dollar. Yet like all windows, this one, for the reasons mentioned above, will close.
Thursday, July 18, 2013
Friday, March 29, 2013
new condo development
It's really remarkable the incredible optimism that developers now have about the Florida real estate market: a complete 180 from just a few years ago. And I do not agree with those that say that we're creating a new "bubble". The dynamics of this new expansion is very different. See here:
83 New Condo Towers Proposed For South Florida; It's 2004 All Over Again - WORLD PROPERTY CHANNEL Global News Center
83 New Condo Towers Proposed For South Florida; It's 2004 All Over Again - WORLD PROPERTY CHANNEL Global News Center
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