That seems to be the million dollar question. If I had a “gazillion” dollars, I would buy what I could in my area. Hold for the long-term. The Emerald Coast is the most glorious place in the U.S.A.! I thought prices were good last year and they have since dropped further. Short sales and foreclosures are rising and there are deals to be had from the banks. Catch them at the right time and you can hit the jackpot! As they say “timing is everything”. Could be, they need to get some bad loans off their books and you just happen to want to buy at that time. I have heard about some crazy offers being “thrown” at the banks. These are bank owned properties (REO’s) and not short sales.
Every week I get updates from the Florida Association of Realtors. Here’s what they have to say about now being a great time to buy:
ORLANDO, Fla. – Sept. 10, 2008 – This fall could be a particularly great time for first-time buyers or those who have been out of the market for at least three years to jump in, say a variety of real estate professionals.
Here are the reasons why:
• Property prices are probably as low as they are going to go as the market stabilizes, thanks to the government takeover of Freddie Mac and Fannie Mae.
• Interest rates are likely to decline as Freddie and Fannie get government help.
• The Federal Housing Administration recently boosted its loan limits to $729,750 in expensive areas. It’s going to take some of that back on Jan. 1, 2009, when the loan limit shrinks to $625,500.
• The FHA allows down payments of as little as 3 percent, but that will rise to 3.5 percent as of Oct. 1. People scraping dollars together for a down payment should try to set their closing for the end of this month.
• The federal tax credit recently approved will shave $7,500 off a first-time buyer’s federal tax bill due April 15. Buyers who don’t owe tax will get the money as a refund. The government’s definition of a first-time buyer is anyone who hasn’t owned a home in the last three years.
Source: The Washington Post, Elizabeth Razzi (09/07/08)
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What do you think?
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