Is it possible that the real estate market is already bouncing back?
It looks like the market is starting to correct already. At least it does down here in
There were some recent reports released from local lenders that they are offering 30yr fixed mortgages at under 6% interest. This is still incredibly cheap. Although there is still a ton of inventory in the MLS, if we continue to have a few more mild hurricane seasons, then things should get a little better for our market down here.
However, I wouldn’t be so naive to think that the insurance companies are going to lower their prices! I can’t believe the insurance industry. They are just raping and pillaging here in FL. I have heard people with BRAND NEW block construction homes, not even in flood zones, have their insurance dropped. Then their policy DOUBLED when they went to another writer.
The cost of insurance, the increase in interest, and the recent hike in property taxes really put a stomping on our market for a while. But, all in all… I think there had to be some stop to the 35% annual appreciation rate that we were seeing.
Now the big question is… do we start to buy and hold again? A lot of investors are waiting this one out, but the ones who can afford to take advantage of this buyers market will really cash in when it completely corrects. And that’s just a matter of time.