As we look onto the New Year approaching, we are seeing an upturn on Miami-Dade County and Broward County residential property prices, United States mortgage rates are at an all time historic low and rental prices are ascending, making this time frame one of the best times in real estate history to purchase a home. Here are five strategies purchasers should consider for buying:
Supply Is Shrinking
Real Estate inventory has substantially declined in South Florida. Finding a home of your dreams may become more challenging. Supply and demand play a big role in real estate. With current limited market supply, buyers are surprised there is no longer a large assortment of houses with varying price ranges to select from. The best homes in the best locations priced right with a great appearance sell first, such as; waterfront homes, pool homes and golf course homes. Don’t miss the opportunity to get that extremely fortunate sale.
Price Increases Are on the Horizon
Prices were expected to skip along the bottom this winter. However, we continue to report that prices are starting to rise, with demand from buyers, the wars on bargain prices for short sales and foreclosures are flourishing with multiple offers "highest and best"! South Florida has many cash buyer that are winning the bids and maintaining our pricing.
Escalating Rental Rates
Looking back historically, the rental market sees an increase in pricing by 3.2% on an annual basis. A study issued earlier this year projects rent increases of 4% for the next two years. Trulia’s rent monitor which has been in place as of April 2012, has seen rent prices this year zooming up by 5.4%.
Interest Rates Are Projected to Rise
Looking at The Wall Streets Journal Market Watch page, The Mortgage Bankers Association estimates that the 30-year mortgage interest rates will be inching up gradually to 4.4% by the end of 2013. That is an increase of approximately one full point over our present rates. When have baby boomers ever seen these current 3% mortgage rates?