Christopher Thornberg, founder and principal of Beacon Economics says that a high level of affordability is likely to drive demand up and reduce the stock of excess inventory, which will ultimately result in the need for new housing, a rise in home prices and a resumption of new construction.
Jordan G. Levine, manager of Beacon Economics Research says, "While prices may fluctuate modestly over the next several months, we believe the worst of the housing crisis is behind us. We expect prices to stabilize around current levels and likely be higher in the next 12 months."
On the brighter side of this downturn, those who are lucky enough to be potential buyers are waking up to find the rain has stopped and housing bargains have fallen from the heavens all around. The housing market in many parts of Florida is sitting at an astounding 50% below construction cost.
“I can’t say if the market is really at the bottom or not,” says Ed Cooper of Port St. Lucie, “but it’s so close that I don’t think it even matters anymore. I don’t know how people can go wrong when they’re buying a 2,100-square-foot home that’s 3 years old, for $50 a square foot.”
Anyone hoping to cash in on a deal had better start now, because to add a spark to a match, October’s 30 year mortgage rates have hit a light-headed 3.875%, an all time record low in the history of Freddie Mac. For this reason most industry insiders are one by one coming to the realization that with the fantastically low housing prices coupled with miniscule mortgage interest rates the conditions are ideal for the entire housing industry to explode like a powder keg.
For more tips, subscribe to our weekly informative newsletter about real estate!
re-blogged from our main Naples Real Estate Blog
SW Florida Homes http://www.andrewollick.com/
SW Florida Luxury Homes http://www.oceanhomesrealty.com/
SW Florida New Homes and Builders http://www.newhomes-ae.com/
No comments:
Post a Comment