Home Decoration & Real Estate

Archive for the ‘real estate trends’ Category

Sunny Miami Florida is without a doubt one of the hottest real estate markets in the world.  Over the years, Miami has noticed a lot of changes in it’s real estate market.  Miami Florida has always been known for it’s pristine beaches and activities, making it perfect for a vacation home or a permanent home for anyone wanting to live close to one of the best cities in the world.

In the past, Southern Florida was known to be a realtor’s dream of a real estate market with extremely explosive growth potential.  During the beginning of the year 2000, Florida noticed some high rises in real estate.  In most areas, including Sunny Isle Beach, the prices of real estate went up as much as 250% in some areas.  This was a drastic change in price, making real estate in Florida very hard to afford.

This change in price let the world know that Florida was very sought after for real estate.  Although the prices were very high, this also changed the entire economic structure throughout Florida, resulting in more businesses, work opportunities, and a lot more income.  Even though it brought more opportunities, the economic growth also helped to make Florida a very expensive city to reside in.

Miami Florida is the second largest city in the state, making it a great choice for real estate.  These days, the homes here aren’t very expensive.  If you are interested in renting a home or apartment here, you may find it to be moderate to high priced.  Miami has long been known for sunshine and fun, which is one of the reasons why so many people decide to purchase real estate there.

Although the past has noticed a lot of interest in real estate for Miami, the future will always be in question.  Homes and housing units will always be built here, although real estate agents have found it increasingly difficult to sell homes.  Even though some homes will sell a lot faster than others, there are some homes that remain on the market for months and months at a time.

As you may have guessed, Miami Florida has noticed a bit of a drop in real estate price and transactions over the years.  Although past years have noticed Miami real estate to skyrocket in both price and appeal, the future makes many wonder.  A lot of areas here are harder to sell now days, with many sellers having to lower their prices just to make a sell.

In the future, Miami real estate will continue to be popular, although the trend of high and low will always be there.  Miami is still one of the best cities in the world to live in, no matter how much the real estate trend fluctuates.

There’s a growing impression that it’s not a good idea to put in some money in real estate at the moment. What happens is people read the newspapers or turn on the television and they get all these numbers, about how foreclosure rates have risen and how property values continue to plummet all around the country. And so it’s very easy for people to think that the whole country is losing value but it’s really not at all.

One thing to keep in mind is that these national averages and percentages fail to accurately depict real life market situations. One of my fundamental laws of real estate is that it’s local, not global. Case in point, the latest foreclosure market report from RealtyTrac ® shows that 1 in every 416 U.S. households were foreclosed. That number is far from encouraging but then again, it does not show the great degree of variance in between local markets. California reported a rather dismal foreclosure rate of 1 in 130. Nevada had it even worse at 1 in very 91. On the other hand, Texas only had 1 in 849. That’s a markedly huge difference.

Astute investors understand that real estate trends will always be highly localized and they are able to make this work in their favor. One of the key things is defining which investment strategy to employ and then, selecting a suitable market for that. For instance, if they employ a long term buy and hold strategy, they go into a robust market with very little fluctuations and shows a steady rate of appreciation over time, sufficiently protecting themselves from unpredictable liquidity events. Ideally, they also get their property to generate passive monthly cash flow in between the time that they purchase it and the time that they decide to sell it.

What more people need to see is that there are very real opportunities in the market right now and they should not be discouraged by these supposed national market trends. By focusing instead on local trends, they’d be surprised to find that now is in fact one of the best times to invest in real estate. For one thing, there’s an abundance of inventory and it’s quite possible to find some really, really good deals. Furthermore, like I mentioned in my last post, lenders would likely be more inclined to lend now than they might be in a few months. If certain changes in policy do occur, then these financial institutions may be discouraged to lend as much. As things are, anyone thinking of making an investment in real estate would be smart to do so as soon as possible.

Even though you may be looking to purchase or sell a home in the New Tampa area, it’s important that you consider national and regional home sales trends. The reason it’s important to understand national and regional real estate trends is because the trends have both a tendency to effect other real estate marketplaces and because trends in other areas (as well as national trends) can provide some useful indicators as to what to expect in the Florida and New Tampa real estate markets not only today but into the future as well.

In point of fact, the most recent home sales trends for November actually bode well for the Florida real estate market on some level. The South (including Florida and the Tampa real estate market) has experienced the lowest market decline than any other region in the country. The South has experienced a nearly 6% decline from the October reporting period. This decline is nearly 100% less than the decline experienced in the market with the worst sales trends report at this point in time.

The worst region as far as market declines are concerned for this reporting is the Northeast region. The Northeast region has experienced a 10% decline in home sales over the course of the last reporting period. Again, as was alluded to a moment ago, this is the worst regional decline in all of the United States for the last reporting period.

Sales were down in the West region for the last reporting period nearly as bad as in the Northeast region. The West region found home sales down by 9.9%. Finally, the month to month decline in the Midwest was just over 7%.

You do need to keep in mind that the declines that have been referenced in this report are based on the transition from the October to the November reporting period. If you compare in home sales decline from November 2006 to November 2007 is even more dramatic (and problematic).

Comparing sales to last year presents a worse picture. Nationwide, sales were down 19.1% compared to last year. The regional declines are as follows: West, 27.78%, South 18.65%, Midwest 16.25%, and Northeast 13.46%. The above figures are seasonally adjusted and based on how many homes would sell over a year’s time at a comparable sales pace.

Despite the trends in home sales over the course of the past year (and currently for that matter), many experts predict that the real estate market will improve after the first of the year. Even though the home mortgage market has tightened significantly over the past several months, and even though foreclosures have hit record levels over the course of 2007, both of these factors are also expected to improve after the first of the year, resulting in improved sales and an improved real estate market.

One of the jobs of we retired folks is reading.   Universally, we have either discovered or rediscovered the joys of reading a good book, and take our reading very seriously. Most of us like fiction, which is to be expected given that our lives aren’t nearly as exciting as our favorite characters.  There’s a lot to be said for curling up with a good book to either be entertained or educated.  Dean Graziosi’s Profit From Real Estate Right Now, while not a thriller, is both entertaining and educational.

I remember my Dad saying “All real estate investments are good, as long as you live long enough to be able to sell it profitably”.  A real truism if there ever was one.  Dean’s book suggests that we not look at the negativity of today’s financial world, but focus on the opportunities in real estate that it affords.  First, he recommends looking and evaluating the real estate trends of the market where you live.  Using the guides he gives will educate you as to what you local market is doing, and how best to evaluate potential investments.  The Las Vegas market is certainly different than the Charlotte market, and he gives you tips on what to look for in making your market assessment.

Then, there are other things to consider.  Because the markets today aren’t appreciating as they once were, Dean states that we cannot use the same “buy low”, wait a brief period of time, and “sell high” techniques that were once the gold standards for real estate profitability.  This brings us back to the evaluation of local market trends, because, according to Dean, this is where your profitability lies.  Because of the  generally depressed real estate market nationwide, he feels that now is the best time to become educated in his philosophy, jump in and make a profit.  In other words, he is saying to use this economic downturn, especially in real estate, to your financial advantage using his techniques.

Profit From Real Estate Right Now is not the first book he’s written.  In fact, Dean Graziosi is a NY Times, USA Today, Amazon and Wall Street Journal best seller.  I guess advertising on As Seen On TV commercials gives him an even greater exposure.  At least that’s where I first saw the book advertised.  I enjoyed reading the book for his insights into profiting in today’s down market.  The summaries at the end of each chapter synthesized the information into a “to-do” guide for future easy reference.  Also, it’s always good to read first hand accounts of the successes of those who have profited from his real estate experience and knowledge.

So, I’ve turned the book over to my investment club for them to read.  I guess by the end of the month I’ll know if there is enough excitement and interest in the group for us to try to put Dean’s knowledge to work.  Goodness knows we’ve invested a whole lot more with the possibility for a whole lot less profitability!

Successful investors rely on real estate investment articles to help them make informed decisions. It is crucial to stay abreast of financial and market changes. Through observation of real estate trends, investors can identify properties which yield good returns on investment.

The Internet is a great source for locating real estate investment articles. Investors can learn about different types of realty and financing options, and locate resources for any type of transaction.

It is important to use caution when obtaining investment advice online. With today’s advanced technology, anyone can establish a website and claim to be a real estate investing expert. If not careful, investors could find themselves turning over hard earned cash to a teenage computer hacker.

On the flip side, the Internet provides nearly immediate transparency on individuals and organizations engaging in unethical behavior. Always conduct research to see what others have to say. Narrow your search by adding the word ‘complaints’; i.e. John Doe+real estate investor+complaints.

It’s best to stick with established financial advisors, investment groups, lending institutions, government agencies, and publishers such as Forbes and Kiplinger. Some of the most trusted investing resources include CREOnline.com, REIClub.com, John Burley and Donald Trump.

Real estate investing requires the ability to change gears when necessary. When I started out, house flipping was the trend of the day. When we fell into recession and subprime lending practices exploded, foreclosure homes became the hot investment trend. Then it changed to short sales. Now, it’s heading back toward foreclosures.

Point being, you never know what will happen in the market. Flexibility is the only way to achieve success in this ever-changing game. The easiest way to stay ahead of other players is to frequently read real estate investment articles.

Knowledge is the key to real estate success. There are plenty of places to obtain credible investing information. Visit local libraries and take home real estate investment books, home study courses, audio books, or periodicals. Listen to podcasts offered by successful investors.

Join professional real estate investor networking groups. Attend in person or join online groups. Participate in real estate investing forums. Connect with other investors and real estate professionals through social networks. Develop a network of professionals including brokers, realtors, mortgage lenders, lawyers, architects, general contractors, appraisers, surveyors, and other investors.

Today’s real estate market is challenging and requires strategy, tenacity, and a bit of luck. As with any investment, risks are involved. If you surround yourself with ethical, honest professionals who under promise and over deliver, you can succeed in this roller-coaster market.