When is a good time to invest in Real Estate?
By: Rae Catanese, Realtor
Hyde Park Place-CondoThrough our website, we are able to track what people are searching for when they go online. Over the past couple months we've seen an increase in people wanting to know when the Real Estate Market is going to change, and the big question "when is the right time to buy"?
Right now sellers do not have their homes on the market unless they are in a situation where they really need to sell. At first, about a year and a half ago when our market started declining if sellers couldn't sell then they just decided to rent. Because of all the condo conversions in our area there were plenty of renters to go around. Now finding a renter who can cover the mortgage has become a struggle as well due to a surplus of rentals.
Most of the media and talk on the street says that the market won't rebound until late 2008 and maybe even 2009 in some areas.
These are the reasons I feel now is the BEST time to purchase.
1. If you can find a seller who purchased 4-5 years ago minimum chances are they have some equity in there home and can be more flexible with their price. They may have it on the market for 250,00 for instance but if they are in a situation that cannot be changed; such as divorce, relocation for a job, they need the money etc. they are going to be more likely to take a much lower price, let's say between 200-225K.
2. If the home is vacant that's even better! Now there's no income AND they want to sell. Sellers are very motivated NOW because they are hearing the same news as everyone else, and they know it may take another year to sell if they keep their price the same and aren't the lowest price in their neighborhood.
3. If you wait until people start hearing the market is rebounding then sellers will think they can hold out to get a better deal, stop dropping their prices and become less motivated. Or even worse, people who really don't have to sell as urgently will start putting their homes on the market creating even more inventory which is something our market does not need.
These are the trends that we as Real Estate Agents are seeing in our market. What buyers may not realize is that sellers who have had their home on the market for a year, don't want to wait or cannot afford to wait another year until things pick up.
Buyers who wait much longer are going to find that everyone who also has been waiting will now become their competition. Interest rates are the lowest they have been right now. When things start rebounding they could go back up again which is also something to keep in mind.
Benefits of using a Realtor
As Realtors we have access to how long a property has been on the market, the amount of price reductions they have had since they listed the property and if the home is vacant. This knowledge is critical in getting a good deal and taking advantage of the buyer's market that we are in.
If you are looking to purchase a home and have been on the fence, I would encourage people to take a look now and see what type of deals sellers are willing to make.
If you are thinking of buying a home anywhere in the Tampa Bay Area please feel free to contact us with any questions.
Rae Catanese, Realtor
Prudential Tropical Realty
813-784-7744
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