Consumers Ogling Home Prices

More good news!

The percentage of consumers who believe homes are attractively priced has increased to a record high even as concerns about higher prices for other items has dropped overall consumer confidence to lows not seen since the early 1980s, according to a University of Michigan index. "Buying conditions for homes improved, reversing much of the decline registered in March, as a record-high 58% of respondents felt that prices were low and good buys were available (interestingly, borrowing costs and credit conditions were viewed less negatively)," said RBS Greenwich Capital strategist Michelle Girard in a report on the university's consumer sentiment index.

If you're thinking about making a purchase, it probably makes sense to stay ahead of the curve.  It won't be long before buyers start flooding back into the market and prices jump...

JH

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Buyers Getting Serious

We are seeing a dramatic change in the South Florida real estate market of late.  Prices in Palm Beach County have RISEN two months in a row – that's right, risen.  Of the last five purchase deals Ocean Trust has closed, four of them have been cash contracts, and three of those were for $1MM or more!  On the finance side, appraised values have been coming in OVER contract price. 

In the broader market, we are seeing volatility and upheaval.  The US dollar is weak against the Canadian dollar and the Euro.  More and more lenders are cooperating with realtors in negotiating short sales.  The stock market is going through very turbulent times.

What does all this mean?  It may be too soon to say that the downturn is over and that the real estate market will return to a more normal market.  But these are significant events and, I believe, reasons for optimism.  In SoFl, what I think that we are seeing is the early signs that the "smart money" is coming back.  With sellers now pricing property realistically and banks getting ready to unload their REO, combined with still historically low interest rates, this year we will see serious buyers taking advantage of opportunities that may never be seen again.

JH

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Featured Properties

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Property Type: Single Family Home

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