Don't miss the boat!

For the past year I have been telling everyone not to miss the boat on buying a home. Our prices are at 1999 levels and in some areas we are already seeing an increase in pricing. Interest rates remain great at around 4.75% - 5%. In our area, the bottom was really last year, we have held steady the past 12 months.

Ok, now I know some of you are saying that I'm just trying to sell homes. Well of course I'm trying to sell homes, but I'm not going to lie to sell a home. For those of you who know me, you know me better than that. Luckily our business is good and has been good for several years. Even if it weren't, I wouldn't lie to make a sale!

The largest indicator of our market is inventory. In Sept. 2010, we had 5,800 single family homes on the market. Today we have just over 3,000. With inventory low, it's just a matter of time before our housing prices increase.

To check out the fastest growing areads in the country, go to:

http://lowes.inman.com/newsletter/2011/07/12/news/146960

If you have any questions, please let us know. We are always here to help!

Mitch

Where has all the homes gone?

So I wouldn't have believed this if you told me this in September, we are moving into a sellers market. Yes, the 5 + year skid in housing in Brevard County seems to be as low as it's going to go and we are seeing prices inching up. What happened? Very simply, the inventory has shrunk to a normal market.

In September 2010 we had 5800 single family homes on the market. Today we have only 3340 homes on the market, almost half. Of those 3340 single family homes, around 800 or so are short sales. This means that we have approximately 2500 homes on the market that you can actually buy and move into over the next 30-45 days. That's quite a change from our high of over 8500 single family homes on the market a couple years ago.

What does this mean to you? It means you are about to miss the boat. This will be one of those times that people will reflect back on and say "if we had only bought in 2010 or 2011"! The tough part for us as Realtors is that the consumer believes we are lying to them when we tell them about the market. Unlike most brokerages and realtors, we are doing fine and have been the past several years. We have also stayed true to our beliefs of honesty and integrity. None of my Agents would lie to get a sale. We know the importance of helping our customers realized their goals and dreams, not ours.

If you have been thinking about buying, this is probably the last best chance you will get over the next several months to a year. Once interest rates start going up, and it's just a matter of time, along with prices going up, the boat will have officially been missed. If you have any questions about the market or any other real estate issue, please don't hesitate to contact myself or any of our agents. We are always here to help!

Mitch

First quarter 2011

Wow! I can't believe it's been a few months since I wrote. That's terrible! I try my best to stay on top of this, but with so much going on all the time, it's difficult. The first quarter of 2011 has been interesting. We have gone from very slow to very busy, back to slow and then back to busy! It's a tough year to call. February was one of our worst months ever and March was our best month ever! Who knows! We have seen interesting movement with pricing lately. Our inventory is under 4,000 units (3875 last I checked) which means we are inching toward a normal market. When we get to 3,000 listings, it's normal! We are certainly seeing prices level out on a regular basis. Palm Bay for instance is actually starting to see an uptick in prices. Gone are the $50k homes that you could have bought last January. I had told everyone back then we were at the bottom, but most people didn't believe me. Now the big question is interest rates. We know you are interested in buying a home, but when. If the interest rates go up just 1%, that adds $200 to your mortgage. Rumor has it that our interest rates nationwide are going to go up to around 6%-6.5%. This will certainly decrease your buying power. If you are interested in talking about your needs, please feel free to call. Have a great day! Mitch

Merry Christmas!

Merry Christmas to all of you. I hope Santa brought you everything you wanted!

So here we are. It's been another interesting year in the world of Real Estate. We have seen prices level out, inventory come down and interest rates reaching an incredible 4.125%! The question is, did you buy a house during this great opportunity or did you let it slip through your fingers?

Let's take a look back. The year started out normal and then the fireworks of the tax credits helped increase sales from March through the end of June. We had 4 record months in a row. Then the bottom fell out again. July through October were unusually slow in our industry and the market has started to rebound again this past month. I'm not a huge fan of government involvement in any industry, and I believe all the tax credit did was speed up those who were going to buy anyway.

So the question remains to me as it has throughout the year. Why are so few people actually buying homes in probably the best opportunity to buy a home in over 10 years? The answer of course is obvious. The fear that has been generated by the media, by our politicians and by all the talk show hosts out there has really done a job on our economy. I believe we would have came back a year or more ago if it weren't for the fear generated by these groups.

The obvious next question is what is in store for 2011? I wish I had that crystal ball to tell everyone that things are going to get better. In my mind, they certainly will get better. They can't get any worse than we have had the past several years in Brevard County. Interest rates have started to rise. They were at 5.25% right before Christmas. I believe that as interest rates rise, consumers will realize that they might be missing a great opportunity to own a home or investment property. Keep in mind, 5.25% is an awesome interest rate. We have become spoiled the past couple of years with steady low interest rates. It's just a matter of time before they rise to 6%, 8% or more. As mentioned in other blogs, this has a tremendous affect on your buying power.

One thing I like to tell our customers is that they need to understand that the real estate market is only tough if you are trying to sell a home. It's all about price right now, so if you are having to sell your home before you buy, look at your price. Even though you will take a lower price on your home, you will still get a better deal on the other end. If you price it right, they will come!

Well as I finish up Christmas night, the family is in bed, my two cats are sitting next to me as I watch a dvr'd CSI episode. It's been a great Christmas having my grandchildren here with us and both my wife's kids. Unfortunately my kids couldn't make it down this year, but that's ok. They are grown adults now and have their own obligations and have become two great men! I have a lot to be thankful for as I come to the end of 2010. My family is doing great, my granddaughter's disease hasn't had any major affect on her this year, and business is good.

Have a very Merry Christmas and a Happy New Year! If you need anything in 2011, you know we are always here to help.

The end of 2010

Well it's been a long year for us in the Real Estate business. Luckily, and thankfully to all of you, we have had another good year. That doesn't make it any easier, but we are very lucky and grateful that we are still doing well in this economy.

Many people have asked us why we have done so well throughout the housing collapse. I believe that most if it is our attitudes. We believe that the current bad market is only bad if you are trying to sell your home. With that said, if your home is priced correctly, it will sell. In todays market, it's all about price. So yes, it's tough to sell your home today...but have you seen how great it is to buy a home right now?

This past several months have been an incredible time to buy a home. I feel bad for those who have decided to wait. I know that they have most likely missed out on the opportunity of a lifetime. Rates have climbed from 4.125% a couple weeks ago to 4.75% today, Dec. 13. Prices have been level now for almost a year and I don't see them going down any further than they are currently listed. Do I know that for sure? Of course not, but our average price in the county last year was $117k and I believe this year we are going to end up right around the same price. We have bottomed, but I believe we did that a year ago. Right now it's really about figuring out when the home prices are going to start going up. We know that the more interest rates go up, the less buying power you have.

So if you have been thinking about buying a home, this is probably your last chance before interest rates go up as well as home prices. As always, if you need anything, that's what we are here to do....help.

Thank You Veterans

Lately I've been travling a lot. It's a lot tougher than it was 15 years ago when I traveled almost every day of the month. I guess it's age. My schedule the past few weeks has been crazy. Three weeks ago I spoke at the Inman's Agent Reboot in Fort Lauderdale, the day before I was at a Fannie Mae Broker seminar also in For Lauderdale. The following week I was in D.C. speaking at another Inman Agent Reboot there. The week after I was in Orlando doing a seminar called Internet Marketing and Lead Conversion - The Truth. Finally, this past weekend, I spent three days in New Orleans at NAR and had a blast!

Why am I telling you all this? Because I am free. I am an American. I'm proud to be an American, but more importantly, I'm so proud of the men and women who currently and in the past have given their time and often their lives so I can live the American Dream. I travel freely around this country because of these men and women. I run my companies and will succeed or fail, but either way because I have the freedom to succeed and fail. Only because of these brave men and women I have had all the opportunities I have had the past almost 50 years of my life.

Have you ever thought what it would have been like if you were born in a different country? Can you imagine what our lives would be like if we weren't blessed to live in the United States? I think about it often, how lucky we are and have been for so many years. Without our soldiers, our warriors, none of this is possible.

Make sure you always thank a soldier and their family's. Every time you do it puts a smile on their face.

To all the current and past men and women who serve our country, Thank You! and God Bless America!

When is the best time to buy?

I hear this question probably 5 times per month, every month. We all want to know when is the best time to buy. The quick answer is when you need a house. However, since we know that's not what people mean when they ask, let's look at why I believe November and December are the best time to buy a home.

A funny thing happens every year in the Real Estate industry. 3/4's of the entire Realtor workforce takes from the second week or so of November off through the end of the year. Personally I have never understood why so many people take that amount of time off, but I'm not like most Realtors and Brokers. I work, I work all year. I do take time off for Thanksgiving and Christmas. Usually about 3-4 days for each holiday. However, most Real Estate professionals look at this time of year as a very slow time. The reality is, it can be a great time to buy a home.

Here is why: Since we know that most Realtors take the last 6 weeks off for the most part, the amount of showings on listings goes down dramatically. So here we are in the second week of December. Most showings of homes are very few and far between. As a seller, when showings drop off, it's a signal for buyers to come into the market. The reason being is that with fewer showings on homes, sellers are more apt to negotiate a little more liberal because of their desire to sell their home and their fear that an offer at this time might be the only offer they receive.

So why buy now? Between interest rates being as low as they have ever been (4.125% the other day) and home prices being as low as they have been in around 10 years, and add in motivated sales and it's the perfect storm to buy. If your goal is to get the best deal on real estate right now, this next 10 weeks may just be the best time for you to put a contract on a house.

One last thing, don't forget that at some point in the very near future interest rates are going to climb. How high? When? Who knows! I don't have a crystal ball, but if you are close to my age (almost 50, yikes!), you know that the interest rates are crazy low.... I've never seen them this low. However, in short order they will go back to at least 6% or maybe 8%. A $200k house at 6% is going to be about $400 more per month than the current rate around 4%. That's a heck of a lot more buying power now than in the future.

Don't miss the boat and be one of the thousands that are about to say: "I should have bought a house during the crash of 2006-2010.

If you need anything or have any questions, don't hesitate to call or email.

Have a great weekend!