Smart investors are making their move into real estate…..NOW!!
Well, it looks like reports are coming in from all over reputable resources (from the National Association of Realtors to local boards to private reports such as Realty Times) that the real estate market has a positive outlook for 2010. These report apply to mainly residential real estate; however, there is one particular sector that I have noticed pick ing up speed in our brokerage and decided to do a bit of research on it. That sector is the real estate investor. I am speaking here about your average investor, the “average joe” not you huge developer. I mean lets face it the formula is pretty simple and it goes something like this:
HIGH INVENTORY + AFFORDABLE PRICING + LOW INTEREST RATES = OPPORTUNITY
Now it would be easy to simply leave it at that but I prefer to look at the hard data, from reputable sources.
According to move.com just over 12% of buyers are looking at purchasing an investment property. Furthermore they state that 25% of homebuyers are targeting foreclosures, and of that number 42% regard their purcahse as an investment. These numbers are pretty impressive compared to the past two and even three years.
In addition, in 2010 we are much clearer on exactly what the government is willing to do or not do in order to prevent additional decay in the financial system. The extension of the tax credit has most certainly helped and also the inclusion of non-first time home buyers to be eligible for the tax credit has increaed the pool of potential buyers. In short there are more buyers out their that will soon match the inventory levels.
In addition, we are seeing reports daily that consumer confidence is on the rise.
Now, I most certainly do not believe that we are headed for another real estate BOOM similar to the one in the mid 2000’s (and I for one would hope that that would not be the case), but I do believe that we are headed for a much more stable market, a much more equal playing field for buyers and sellers.
So buyers if you are on the fence, now is the time to dive deep into your research. Look at trends, watch the market!
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South Florida Brokers & Associates, Inc.