Will Country Follow Miami Real Estate Trend?
Are mortgage rates finally slowly down? While slight drops in interest have been shown recently, numbers are still higher than they were a year ago.
Could this be why existing-home sales declined in November? David Lereah of the National Association of Realtors (NAR) commented on this subject last week. NAR’s chief economist, noted that higher mortgage interest rates were responsible for moderating sales, but that it’s important to keep an eye on the actual level of home sales given the market surge of last year.
“The current pace of home sales activity remains historically strong – only eight months have had a higher sales pace,” Lereah continued. “A modest downtrend, to a sales volume that is expected to be the second-best year ever in 2006, will be good for the long-term health of the housing sector.”
Florida home loan market sets national trend?
Real estate experts report that in Florida, the busiest months for real estate are February and March. Trends during these months help to determine whether the market has truly cooled or if it will pick back up again. Across the nation, however, there is a definite cold spell in terms of home sales and mortgage applications.
Real estate experts predict that sales will be steady, mortgage interest rates will remain fairly stable and that the housing bubble will NOT burst. Overall, predictions for the 2006 real estate market remain optimistic. However, we will probably not see the double digit appreciation we have been experiencing over the past few years.
In particular, Miami real estate is a strong market.
Prices on pre-construction are approximately $600 per square foot and up. Resales on condominiums are $350 per square foot and up — sometimes slightly less. Some newer projects can also be found at $300-$350 per square foot, but are reported as selling quickly.
Other experts report that the Miami market is currently great for the sellers, though not as strong as it was before. A decline in prices will soon mean it could become a buyer’s market, a potential property owners gain leverage. In the near future the Miami market should level out and become more stable. The average market price, according to the Miami Herald, is $282,000; while the average time for a house to be on the market is around three weeks.
As is often the case, the Florida home loan industry is being looked at as an example of a growing field, one that isn’t facing the downturn with which other parts of the country are dealing.
