Cooler Market...Great for Buyers!

To put it simply, our market is cool right now. Its not the red-hot market that is was just 1 year ago. There is nothing tragic or amazingly unpredictable about that. Last year, some areas of Tampa increased between 38-41% in value! That's an extreme increase! There is no way that real estate (or stock or anything else) can maintain that type of value increase over a long period of time. It's just impossible!

Now to put that article into proper perspective, many investors have been left hanging because there is a huge amount of inventory out there with a smaller pool of willing buyers. Other factors such as crude oil prices and insurance rate increases (among others) have buyers a little worried. However, I predict that values will still continue to increase at a more realistic rate of between 4-8% or more over the next 12 months. I say this because the job market remains strong (locally and nationally) and people are still moving to Florida at a rate of 1000 per day. Interest rates are still relatively low as well. Demand will remain consistent and people will always need a place to live, so real estate is still a strong investment...Just ask any stock broker if a return of 4-8% is a good one, and I'm sure they will give you a resounding "YES"!

What is going on right is simply a "leveling" of the market. Its actually VERY good for the market to do this. This period of market "correction" is great for all of us. Personally, I feel that is time may be a little tougher for sellers because properties are sitting on the market a little longer, and the seller must price their home in a realistic and competitive manner....which may give buyers more to choose from, and that means prices will be less inflated. Buyers may even be able to find a deal to two.

If you really look at it, this may be a great time to buy!!!