Is It A Great Time to Buy a Home?

As a real estate agent, people should be suspect if I say it’s a great time to buy a home. After all, I’m in the business of selling Daytona Beach and Ormond Beach real estate. The Atlantic magazine, weighed in this week when writer Daniel Indiviglio wrote an article on the subject.

Mr. Indiviglio writes about many of the things that we’ve been talking about:

• Foreclosures putting pressure on prices
• First Time Home Buyer Tax Credit
• Low low mortgage rates

He summarizes nicely, an approach that I would agree with for buyers:

“I think short-term real estate speculation is probably still
ill-advised. Even if home prices have hit the bottom, I don’t think
they’re likely to increase quickly over the next several years. So if
you’re hoping to get in and get out, you might be in for a rude
awakening.”

But if you’re in the market for a home as a long-term investment,
say at least 10-15 years, it’s pretty hard to make an argument against
buying now. Even if we aren’t at the precise bottom, it’s hard to
believe that home prices could plummet much further in most areas. And
even if they did continue to decline a little, the tax credit might
make up for most or all of that decline anyway. For anyone who can find
an especially good deal on a foreclosure or short-sale property, I find
it even more difficult to argue against buying.”

Daytona Beach foreclosures continue at a high rate, but the inventory is relatively low because it’s taking so long for lenders to process foreclosures to conclusion. There are many more short sales available and we believe this is where the best bargains are. The downside is that short sales are much more difficult to bring to conclusion. First it can take a long time for banks to respond to an offer. Then it can take a long time to complete the process.

Foreclosures are much less complicated because the bank is the owner and really wants to sell the property. However, the banks have already gone through the cost of foreclosure, so there is less of a chance on getting a great deal before market price.

Check out the article at The Atlantic here –> A Great Time To Buy A Home?

Here are Mr. Indiviglio’s final thoughts on buying a home now:

“So while it’s never possible to say with full confidence that any time
is the best time to buy a home, it’s hard to see right now as anything
other than a pretty good time to buy. It appears to be a buyer’s market
in every imaginable way.”

Well put!

Florida Leads The Country in Foreclosures

The Sun Sentinel reports in a recent article – Florida leads the nation in foreclosures:

One out of four Florida home mortgages is in foreclosure or delinquent.The third quarter report from the Mortgage Bankers Association
brings almost too much precision to the picture of the foreclosure
crisis.

Nationwide, more than 4 million home mortgage borrowers are behind on their payments.

In Florida, we have 441,440 home loans in foreclosure and 422,036 that are delinquent.

The Florida foreclosure rate is the highest in the nation. And the
combination of the foreclosure and delinquency rate is also the highest.

A total of 12.18 percent of home mortgages in Florida are delinquent and 12.74 are in foreclosure.

Daytona Beach Homes in Foreclosure

In October, foreclosures in Volusia County were up 3% while the rest of the nation saw a small month to month decline. We did see a 4% decline for the state from last October. 1500 Volusia County homes are in foreclosure, but many more are in the foreclosure process.

This rate of foreclosures will continue to keep inventories high making for real pricing opportunities for buyers. Prices as reported as an average are nearly useless in this market. It takes work and patience to find the right property at the right price and buyers who are willing to go through the process can get tremendous bargains.

Sellers who are not in financial distress with a property must decide whether to hold the property or sell and cut their losses. That’s a personal decision based upon individual financial situations. However, keep in mind that you are competing against short sales and foreclosures and must price aggressively to sell in this market.

This situation will not be going away for a few years. See my article from a few days ago – Foreclosure and Delinquency Rates Rise for why. If your a buyer, the best approach you can make is to decide what you’re looking for and your timing because even though there are plenty of properties on the market, the prime properties are competitive. For instance, oceanfront condos in Daytona Beach Shores that are competitively priced have gone under contract almost immediately after listing. They are super-desirable and require buyers who know what they want and are ready to pull the trigger when the property comes on the market.

Give me a call at 386-566-7503 to discuss your options  or just to ask questions about the market.

The Most Important Factor When Buying Daytona Beach Homes and Condos

Location is Not Enough

It is often said that location is the most important factor when buying real estate, and it’s true, at least partially true. Where you buy your home is critical to the future appreciation of your home. Not all homes in all areas appreciate at the same rate. There is a secret to making sure that you get the most appreciation in any area.

The secret to future appreciation is buying a home in the most desirable areas in the Daytona Beach area. The most desirable areas are those where the most people are competing to buy. There may be many of these areas and they will differ based upon the price range where you’re buying.

If you are looking for future appreciation, you may need to give up some space and features. Yes, you can get more house in less desirable areas, but you won’t get the appreciation. That’s why it is very important to define exactly what you’re looking for and why. If you are planning to retire and live out your years in your next home, then appreciation is not your number one focus.

Finding the Most Desirable Neighborhoods

How do you find the most desirable areas? As an individual buyer, you’ve never had more tools at your disposal if you want to do it yourself. There are many internet sites that will present information that will give you an idea. However, the best way to find out what’s hot is to ask the experts. I am a Daytona Beach real estate agent who has 11 years of experience. I’ve sold hundreds of homes and condos from Port Orange to Ormond Beach to Palm Coast. I know the area and help you choose right home for you.