The decision to buy a home seldom comes overnight—indeed, even seasoned investors think long and hard before putting money into real estate. For most people, it’s the single most important investment they’ll ever make. So it’s only natural, even practical, to get informed before taking that step. Here are ten things worth knowing if you want to get your money’s worth.
The slow but steady rebound of the housing market has brought about a rise in real estate investing. But investing in property is no easy business, although the dozens of money gurus on the Internet would tell you otherwise. There is a right way to go about it—it’s just a matter of finding it while […]
The following statistical data is from information provided through the Multiple Listing Service of the Sarasota Association of Realtors. The following table summarizes what happened in each price segment. The Sold M, Pend M (Pending) and List M (Listings) columns are new transactions that happened during the month and the Pending, not yet closed and Listed are the totals of each in the MLS system. The Sold column is the total sales for 2010 year to date.
The following statistical data is from information provided through the Multiple Listing Service of the Sarasota Association of Realtors. The following table summarizes what happened in each price segment. The Sold M, Pend M (Pending) and List M (Listings) columns are new transactions that happened during February 2010 and the Pending and Listed are the totals of each in the MLS system and the Sold column are the total sales for 2010 year to date.
The following statistical data is from information provided through the Multiple Listing Service of the Sarasota Association of Realtors. The following table summarizes what happened in each price segment. The Sold M, Pend M (Pending) and List M (Listings) columns are new transactions that happened during February 2010 and the Pending and Listed are the totals of each in the MLS system and the Sold column are the total sales for 2010 year to date.
The good news for the housing sector is that existing home sales in the U.S. rose 10.1% in October, 2009, and we are beginning to see signs of stabilization. [See Policy, Price, and Product Are Used to Assess Market Recovery for details.]
There is widespread agreement that problems in the housing market caused the financial crisis and led to the recession. It’s important to note, however, that the housing market is inextricably linked to the employment sector and a sustained improvement for housing might not be realized until the broader economy, including the job market, has recovered.
Existing home sales in the U.S. rose 10.1% in October, 2009. This is good news for the housing sector that has been hurt by an exceedingly large inventory of unsold homes and unprecedented rates of foreclosure.
Government Policy
The ability of the housing market to stand on its own, unaided by federal stimulus, will be tested very soon. The end is nearing for two federal policies that are credited with providing a boost to the housing market this year. The $8,000 tax credit for new home buyers was extended, but is scheduled to end in the spring of 2010. Secondly, the Federal Reserve, which purchased mortgage securities in an effort to keep mortgage rates low, has indicated that aid will soon cease as well.
There were 34 homes sold this past year, identical to 34 in 2008, 32 in 2007 and 18 in 2006. The annual sales volume was $32,000,000 compared to $46,000,000 in 2008 and $75,000,000 in 2007. The main reason for the significant decrease in the sales volume is that there has only been one sale of a substantial bay front home this year. Homes sold on average for 76% of list price compared to 80% in 2008. The average days to contract are down from 200 in 2008 to 181 days. Twenty three of this years closed sales were garden homes as opposed to the more expensive waterfront homes.
If you’re in a position to invest in today’s real estate market, you may be able to take advantage of some once-in-a-lifetime deals. All investment comes with risk, however, and this is no time to ignore warning signs of deals that can sour quickly. Keep these guidelines in mind when considering your potential investments:
Rise above the times. Investors who are able to navigate tough times such as these and still come out ahead are in the best position for long-term success due to a consistently strong track record.
At a time when the housing market is struggling to recover, the slightest mortgage rate adjustment is scrutinized since even a minor rise stands to lessen the buying power of borrowers. In the most basic of terms, lower interest rates afford buyers more house for their money. Additionally, higher interest rates typically cause home prices to fall.
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