RLM Properties Real Estate Blog

It has been over 1 1/2 years since I have posted. We have been extremely busy with REO sales and short sales as we work thru this inventory of foreclosures. The question is are we at the bottom or near a bottom? I have heard it said those that live by the crystal ball eat glass, If you read my previous blogs I would have guessed we would be in a little better position than where we are today in the real estate market. We have seen strong sales over the last 18 months and buyers are getting great deals on homes from as low as $50 a sq foot on some newer construction homes in Port St Lucie and the Treasure Coast. We have seen values drop approx 60 - 70% since the fall out in 2006. With interest rates at record lows of around 4.375% and values at an average of 105,000 buying is getting to be a better option that renting if you can get qualified and plan to stay in the house 5 years or more. To get qualified in todays market is not as hard as some believe but there are many hoops to jump thru and you need to have your ducks in a row to get a loan, if you have the right loan officer this is easily navigated. What is on the horizon you ask? With over 50% of the home owners in St Lucie County that owe more than what their house is worth (The country average is about 1/3 of home owners owe more than the house is worth) we have many years ahead before we see an appreciation. We may even see a 5-10% decrease before we see a leveling and then a flat period. If and when the economy gets back on track we will see the 3-5% typical appreciation on home prices annually. The banks are holding inventory back at the moment as buyers have dropped off after the tax credit expired which is good idea as we do not need a flood of inventory on the market as it would push prices down even lower. If you plan to buy a house and live in it for 5 plus years it is great time with low interest rates, if you need to sell in the next few years it is best to rent. If you need to sell your current home you are up against the Foreclosures on the market that are prices very aggressive so be patient it may take 6 - 8 months to sell at a more retail price. If you do owe more than your house is worth and need to sell as a Short Sale call us and we will evaluate your situation as Short sales are no easy task but with advice of your attorney and accountant we can help you navigate the transaction. If you do not have an attorney we can put you in touch with a local attorney that specializes in Short Sales. Here is a table of the real estate market since last year, if you have any questions at all please give us a call!