Southwest Florida is busy with snowbirds here looking at real estate, perhaps a bit more looking than buying, but traditionally the snowbirds buy before they leave in May. (The good news for us is that many of the baby boomers are staying here!). The good news for them is that we have a great deal of inventory now (about eight months at the current rate of sales). I can also tell you that prices are dropping on some resales – although I see this as short lived.
I know you have heard this before, but this is a good time to buy. Construction costs are going up, however, so the deals at new communities (See a bunch of them here) will not last through the second quarter.
Inventory may be large, but “economical to own houses” are in scarce supply. If you wait to buy, your selection will be getting sparse. Kind of like the shoe rack at AAA Discount Shoes: only the sizes and styles you don’t want will be available.
Money is also still cheap. But I expect rates to rise more in 2017, so if you are going to borrow money – act sooner rather than later.
I know many of you are now looking at new acquisitions. Before you make the plunge read my article on my top ten tips in real estate. HERE
I have been compiling this list for a while – and probably made most of the mistakes in here. It’s worth the time to go through the list by clicking Gregg’s TIPS
Prices to build
Costs to build are going up. If you can buy a home at a price lower than replacement costs, and the house is in good shape, relatively new, and especially if it is in an area of new construction…..by all means buy. This is particularly true in condos. The average square foot price of Oasis Condos, for example, that were SOLD in the past six months is $177/sf. The 32 or so listed are priced at an average price per square foot it $221/sf. By comparison the new prices at Allure condos (to be built) exceed $300/sf. As these new condos are absorbed, I expect to see inflation on resale prices for old condos to reach closer to the new condos. (See the Allure condos here)
Economical to own.
Purchase price is just one of the costs. Also look at:
CDD ( Community Development District Bonds)
HOA and Condo Fees
Long term replacement items (Roof, A/C, Plumbing, Electric, and Pool)
(Taxes are pretty even – about 1.5% of the purchase price you pay for a home)
If I can help you in your home search, please call me.