Why Buy Real Estate NOW?

While it is common knowledge that sales figures and total sales numbers are down, this topic is in need of clarification. I hope to shed some light on the current market condition and help to place it in perspective. According to National Association of Realtors (NAR) Senior Economist, Lawrence Yun, as of November, the year 2007 was expected to be the fifth highest year on record for existing-home sales. Also in November, Florida’s median sales price for an existing single-family home was $215,800. One year prior, the median sales price was $239,800, showing only a 10% decrease. In November 2002, the median sales price was $14 1,500, showing a 52.5% increase. Therefore, while prices may be moderately down, historically, increases in property value has vastly outweighed any decrease. In my opinion, recent decreases in sales prices reflect more realistic expectations from Sellers, especially in contrast with the prices of 2005. We may find ourselves getting back to a more realistic price for local homebuyers. Yun, NAR’s Senior Economist, said he expects home prices to hold steady this year, at the 2007 level. From the Buyers prospective, one should keep in mind that buying now shows to be a good opportunity to receive a “Bargain”. As a prospective Seller, one should keep in mind that Selling your home today, at a lower price than it may have sold for in the couple years past, is not necessarily an unsound financial decision as you may be able to turn around and find immediate equity in the purchase of your new home at that same lower price. Most importantly, as demonstrated historically, though prices may fluctuate, real estate appreciation, over lengths of time, is almost inevitable. Let’s take a look at some other positive factors, including current mortgage rates and homeownership in comparison to its alternative. With current mortgage interest rates, on a 30-year fixed-rate mortgage, at about 6.5%, interest rates are relatively low. Historically, interest rates are extremely reasonable, especially compared to the going rate of 18% in 1980. Also, the increasing use of P1-IA and VA mortgages has helped a large number of first-time buyers receive financing. With the National Association of Realtor’s (NAR) support, we can hope to see the FHA program become even more flexible and have an increase in loan limits. Another topic worth taking note of, homeownership is almost always a wise investment in comparison to renting. In many situations, a Buyer can purchase a home with very little down payment and receive a monthly payment equal to or closely comparable to the costs of renting. Homeownership provides tax relief as most Florida homeowners can deduct expenses such as mortgage interest and property taxes from their annual income tax return. Homeownership, in the case of a fixed-rate mortgage, provides a “locked-in” monthly payment. As a renter, one should expect their rental price to go up from time to time. This is directly related to appreciation in real estate values and associated costs. As a homeowner, opposite of the renter, you can benefit from this appreciation. (Above numbers provided by FAR and NAR literature)

Why Buy In Florida NOW?

Florida’s Real Estate market is currently offering a larger selection of available homes than it has in over a decade. This large inventory offers a wide array of selections and options to Buyers. Also, Florida has seen a consistent increase in population and that increase is expected to continue. Some of the source of Florida’s population growth can be attributed to its increasing job market, high number of International Buyers, and influx of persons coming into retirement. In 2007, Florida saw an increase in new jobs of 1.7%. In 2008, it has been projected that Florida will see an approximate increase in jobs of 2.1%. In mid-2007, a study showed that Florida accounted for 26% of all purchases made by foreign homebuyers. Some unique attributes of Florida that could have contributed to these International purchases are our 31 major airports, our 14 deepwater seaports, and our knack for tourism and vacationers. Along with many other factors, Florida’s wonderful weather, our moderate costs of living, moderate home prices, and many attractions, waterways, and services, make Florida attractive to retiree’s. More than 900 people move to Florida each day, in the end it is anticipated that Florida will see a net increase in population of 325,000 people this year. Through this increase of population and number of jobs combined with the expected decrease of new/speculative home construction, home inventory is likely to decrease over the course of 2008, making now the perfect time for every homebuyer to take action. This expected decrease in inventory should positively affect the real estate market, as it should help in stabilizing prices. (Above numbers provided by FAR and NAR literature)

Why Buy Here NOW?

Why Lake Butler, Starke, and Keystone Heights? Superior quality of life! Affordable costs of living! In comparison to the rest of the state, our area has many unique things to offer. This area is centrally located between and absorbs/offers benefits from and to Jacksonville, Gainesville, and Lake City. There is an abundance of positive growth to directly affect our communities. Jacksonville is a major source of jobs and has the unique offering of a deep water port. In 2005 Jacksonville was the 4th largest “technology hub” in Florida, offering a large number of tech industry, high paying jobs. Through new industrial facilities, approximately 300 new jobs are expected to be introduced to Lake City this year. Through the University of Florida and Santa Fe Community College, Gainesville offers a consistent need for housing and provides a large number of dependable jobs. Following are a few properties actively for sale that can demonstrate examples of great investment opportunities available today. Available for sale in Union County, a 2,079 total sq ft, new construction, 3 bedroom, 2 bath home priced at $168,500. Also available, a completely renovated/remodeled 3 bedroom, 1.5 bath home price at $96,000. A home site to mention, also in Union County, is 2 acres just outside of Lake Butler, priced at $27,500. The Bottom line is that there is and should be activity in the real estate industry and we have good things to look forward to in North Florida!

Amber Roberts-Crawford, Broker/Owner
Swift Creek Realty

 As seen in the Union County Times and the Bradford Telegraph. Click Below to view directly on their website.

http://www.zwire.com/site/news.cfm?newsid=19230150&BRD=2150&PAG=461&dept_id=
430589&rfi=6