Posts Tagged ‘real estate investors’
Many real estate investors, especially those who are buying real estate purely for investment purposes, are continually asking me this question. Is it time to buy? Have we finally hit “rock bottom.”
Real estate prices have continued to drop over the last few years, after reaching an all time high a few years earlier. Those investors looking for the best deal have been waiting for what they believe is”rock bottom” in order to make a purchase they can later profit from because prices are so low right now.
Finding rock bottom can be tough in a down economy. In the first place, market conditions vary pretty dramatically across the country. So, it’s pretty certain that some areas have already reached the bottom, while others may not reach it for several more months.
It does seem, however, that many markets are on the way back up. There’s no guarantee that they’ll stay that way, but as we see the job market improve, some areas of the country are definitely seeing the real estate market stabilize, and even creep us slightly.
Certain areas, like central Florida, which were particularly hard hit, are benefitting more than other areas from the recent slight improvement. There are so many factors that affect the housing market, and job market, along with business growth are two of the most important. Central Florida markets like Orlando and surrounding suburbs are rebounding more quickly because the area is growing so quickly. Orlando is ranked as one of the fastest growing areas in the nation, and it is also one of the areas where businesses are relocating in record numbers These two factors have contributed to the recent stabilization of Orlando’s market. If you’re in the market for a vacation home, a second home or a primary home in this part of the country; you should move fast.
There are other areas of the country, just as hard hit as Florida, which have not yet started to recover. Southwest cities, like Phoenix, continue to see home values decline. While Phoenix prices may still look high to Easterners, at $188 per square foot, the market in Phoenix has seen significant loss. That $188 per square foot is down 40% from its high.
So, as you can see; there are no sure answers as to whether or not the market has bottomed out. It would appear that in some areas, we have seen the bottom, while in others there will be more decline.
It’s important to evaluate the market you’d like to buy in very specifically. A qualified realtor in your area can help you make a good guess as to whether prices in that particular area have reached their low.
It is certain, however, that the economy as a whole is showing signs of recovery; though that recovery is surely slower than we ever expected. There will continue to be ups and downs in the markets, but the general trend is showing upward. Your chances of buying at bottom or near bottom prices are getting smaller and smaller. So, if you want to make a real estate purchase; there’s no better time than right now. Trying to anticipate and wait for the rock bottom could cause you to miss out on a great buying opportunity that’s right in front of you.