Coldwell Banker Residential RE
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Don't be fooled by drive by media outlets.
Real estate is still all about location.

Bugatti

A Million Dollar Car

Have We Started the Next Boom in Real Estate?

 

I have recently spoken with my brother in Illinois, friends in Alabama, New York, Massachusetts and since I am a Realtor� they ask my professional opinion on buying and selling their homes. The math in the market is simple. If you have cash for a down payment, a good credit score if you plan to finance and are ready to move there are plenty of homes to chose from in just about every market of the US. Homes are more affordable today than they have been in the 35 years since we have had an affordability indexInterest rates while above the nadir are far below the average for the past 30 years.

The national news tends to focus only on the negatives. For instance all of the stories on the low level of housing starts sounds terrible, however if you own a home and want to sell that is great news because less housing starts mean less competition for your home when you sell.

On the flip side if you are looking at buying real estate every time you hear bad news on TV about decreasing prices, which is good news for you, you will get more house for your dollar.

Also remember every local market is different, I mainly work in the College Park and Winter Park market of the Orlando Metro area and while there is still plenty of inventory to choose from, the number of homes on the market has shrunk 49% from our 2008 highs to 10,085 as of today.

There has also been this ongoing debate of whether it is better to own than rent. And in the short term it may make sense to rent. But according to one of the best investors around:

"Home ownership makes sense for most Americans, particularly at today's lower prices and bargain interest rates. All things considered, the third best investment I ever made was the purchase of my home, though I would have made far more money had I instead rented and used the purchase money to buy stocks. For the $31,500 I paid for our house, my family and I gained 52 years of terrific memories with more to come."

 

In this same note he stated that a housing recovery should begin in about a year. And while this investor may not be as knowledgeable about housing as Case and Shiller I am certain he could teach them a thing or two about value investing.

The quote above was from Warren Buffet in his letter to his shareholders and can be seen in entirety here:

Warren Buffet in his letter to shareholders 

So are we in the next boom? Maybe or maybe not, but we are much closer to the bottom than we have been in a long time. And you could see some erosion in pricing in the short term due to over supply however there is no where near as far to fall especially in Central Florida where are pricing is flirting with ten year lows in many areas and that is not taking into consideration inflation. 

Pundits have been proclaiming it is cheaper to rent than buy.

Do you think that's true in the Orlando Metro Area?

Orlando Metro Rent Vs Buy Facts

If you are looking for a great Condo in Maitland

with gorgeous lake views visit my newest listing.

Thank you for reading my newsletter. If you know someone who would be interested in this type of information please forward it to them.  If you know someone who would be interested in my services please let me know, I am always happy to give a free consultation.
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Sincerely,

Greg Vazzana

Coldwell Banker Residential RE
400 South Park Ave. Suite 210
321.947.7218
  
PS This is not a corporate email. The article is written and researched by me. I do not share your email addresses with anyone.