The New Real Estate Market

Well, it's been quite some time since I posted and I thought it was time to update the blog. This real estate market is one for the text books. In ten years kids in economy classes will be reading about the housing boom and crisis of the early 2000s. This country's real estate has come almost full circle. Housing prices are back down to 2003-2004 price levels. Insurance rates are decreasing but you need to make sure you have all the discounts available to you. In Florida and other east coast states (where insurance rates have skyrocketed the last few years) it means having all the hurricane protection you can, i.e. shutters, roof straps, storm windows and doors, etc.

County property appraisers are lowering tax assessed values so property taxes are decreasing as well. Interest rates are low and may get even lower if the Fed keeps reducing key interest rates to stave off inflation. There is a huge inventory of homes for sale. In normal markets, many areas have maybe a 3-4 month supply of homes for sale. Today, some markets have 12-18, 24 or even 36 months of housing inventory built up (including foreclosures and short sales). Taking that into consideration plus all the new homes that will come on the market means housing bargains like never before. Seller's can't even give their homes away.

So what is with this real estate market? Why are buyers not out there in droves looking to purchase the bargain of a lifetime? I will answer these questions and explain more of the "New Real Estate Market" in my next post.