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The phrase “the right time to buy” has been overused by agents the last few years due to plummeting home values. This phrase is more relevant today then ever has home prices continue to reach record lows. So if you were to ask me if it’s the right time to buy? I would say an absolute yes. Home prices are at their lowest levels in recent memory, which makes it the right opportunity to purchase a property. The government has made attempts to stimulate the housing market through tax credits and other measures but have failed to stem the avalanche of distressed properties that have taken up a large portion of inventory across the country. Prices will most likely continue to fall because distressed properties are depressing home prices. With a negative economic outlook on the horizon and rising unemployment, it is likely that more Americans will default on their mortgages due to a grim job market and stagnant wages. This will most likely lead to an incease in distressed home inventory. Now when I say it’s the right time to buy, I say it under certain conditions in that it’s the right time to buy if you can actually afford to purchase a property. Let’s not forget the Real Estate bubble was created because buyers received loans on properties they just could not afford. This hysteria could certainly happen again since nothing has been done to fix what caused the original crisis. If you’re buying a home, you want to purchase a home in cash if all possible. Home prices have dropped low enough where purchasing a home in cash is doable. If you are going to use financing, use a fixed rate loan and leave a large enough down payment where you can pay off the loan in a few years. To get stuck with a 15 or 30 year mortgage in this market environment will leave you in bad financial position, especially if you have to sell your home in a few years. It’s important to keep in mind that there are risks when purchasing a home. This market has been brutal to both buyers and sellers. However I also believe that even in dire times there is always opportunity. If you are not careful though, this opporunity can come with a heavy price.
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Home values in many parts of the country have been savaged by the credit bust of 2008. In some parts of the country home prices dropped more then 30%. Foreclosures and vacant properties are still a factor in reduced home prices. Luxury homes however are a different story. A recent article in Financial Planning shows that luxury homes actually increased in 2010. The article indicated that 40% of the worlds exclusive property markets increased in value in 2010. Asian markets were some of the top gainers. I’ve emphasized in previous blogs that Florida is becoming extremely attractive to high income earners. With lower taxes and a beautiful climate. It’s a no brain-er if you’re someone who is in a high tax bracket. Wealthy foreigners are also flocking to Florida because they want to take advantage of low home prices. So as far as luxury home are concerned, it’s very likely that luxury home prices will stabilize or rise in value as that niche market thrives due to the growing number of millionaires and a rising middle class found in the states and in emerging markets around the world. Florida could be the next playground for the rich if it isn’t already.
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America’s top earners are migrating from states like New York and New Jersey to the warmer climate of Florida. That according to a Forbes article written last summer. The move to Florida, Texas, and other southern states is becoming an increasing trend due to economic uncertainty and higher tax rates in northern states that is prompting upper class earners to move south of the Border. Florida and Texas alone have some of the lowest property tax rates in the nation, Florida being #8 and Texas #4. In Florida, there is no state income tax which is another huge incentive for those in higher income brackets to move to Florida. Some of the more popular counties for the rich are Nassau and Walton counties located near Jacksonville and Pensacola Florida. However there are many cities in Florida that can appeal to the wealthy. Miami is an obvious choice. With an amazing night life and beautiful luxury homes such as in Star Island and Boca Raton, Miami is certainly a great choice for the urban jet setter. There’s also Tampa which is located on the west coast of Florida. Tampa is surrounded by some of the most beautiful beaches in the state found in Clearwater and Saint Petersburg. Tampa has premier luxury homes such as in Bayshore and South Tampa that cover a number of styles and designs. Tampa is also an hour away from Orlando, Disney, and other attractions. Tampa and Miami are just a few of the many great places Florida has to settle down. If you have any questions. Please contact me at frank@findmyfloridahome.net or click on the contact button on the TampaLuxuryHomes site.
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According to an article on TampaBay.com, foreign investors have doubled their purchases of Tampa Bay real estate since last year. Normally foreigners flocked to Miami for bargains after the market bubble of a few years ago. Now foreign investors are looking to Tampa for bargains. You better believe that among these foreigners, a nice percentage of them are looking for luxury property. “Another factor luring the foreign cash:Luxury condos are currently looking cheaper than the cost of building new ones. New construction has halted as the market rids itself of excess inventory from the building boom”(Puente, TampaBay). If your looking to purchase a luxury home, expect to have some competition as investors from across the globe are looking to Tampa for a good deal. Some of the areas that foreign buyers will most likely look at are beachfront properties. Saint Petersburg and Clearwater are the obvious choices. If there is a luxury property that has caught your eye. You certainly want to make a decision quickly as more buyers are flooding the market to look for the right priced home.
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Tampa is known for its great weather and rich history. But Tampa also has some of the most beautiful luxury homes in the west coast of Florida. From colonial and ranch homes to modern day mansions. Tampa has a variety of homes to satisfy any home buyer. However you do have to look at the right parts of town to find what you’re looking for. One of my favorite high end neighborhoods is Westchase. Westchase is close to the Carrollwood section of Tampa. It has a golf course as well as stores and restaurants. The homes are stunning to where each neighborhood has a specific home design in mind. Some subdivisions have colonial homes while others are modern trac homes. Another part of Tampa I like is the South Tampa area. The homes off of Bayshore have bungalow and classical homes each having their own architectural style. They have their own character and charm that many new homes lack. So if your looking for luxury homes. Westchase and South Tampa are a great place to start.
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According to CNN money report, luxury homes sales increased in all 20 major metropolitan areas last year. Some areas saw an 18% increase in luxury homes sales. So luxury homes are still a prominent part of the real estate market. The reason luxury homes are still in demand is due to several factors. One is high end or upper class segments of the population haven’t been affected as much by the financial crisis as those in lower income brackets. Luxury homes are also a niche market that makes up a small percentage of transactions. This doesn’t mean that luxury homes have remained unharmed by the Real Estate bubble. Luxury homes still have lost some value as we continue to progress through what is deemed, ” the great recession.” But in the grand scheme of things, luxury homes present a great opportunity for buyers and sellers since it will be easier to sell or find a home in a market that has remained somewhat consistent in this market environment.
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We try to spare no expenses here at Team Masse and we strive on delivering state of the art technology on behalf of our clients. We have gone ahead and purchased an IDX search solution directly linked to the Tampa MLS, similar to the one used by Real Estate Agents. The only difference is that it gives the consumer more options to create searches, save searches, and generate emails of real time data of property listings.
Please go ahead and try it out for yourself. You are able to create an account and begin inputing data that helps you locate only the properties you are interested in. The data will be mailed to you as often as you choose. These services are completely FREE to our Buyers!
You can get started now by clicking the button below:
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