“What is going on today in the real estate market”? Some say the so-called proverbial “bubble” has burst, some think it is stagnant, some still think real estate is the best investment since sliced bread. We hear the topic discussed pro and con on television by the talking heads, read the doom and gloom in our local newspapers, hear it over our daily dose of caffeine at our favorite coffee meeting place. The “experts” say don’t buy or sell and the others say now is the time to sell and buy.

We in Florida, in South Florida in particular, have experienced over the last five years resale homes and pre-construction in high demand. All entities of customers, from the first-time homebuyer, to the second-home buyer (and even more) to investors, both domestic and international, were looking to own a piece of property here. The supply of homes was minimum as property stayed on the market for such a short period of time that many homes had more than one offer on the table and Sellers could pick and choose which offer to accept. Prices soared and homes were valued higher than ever before. In some cases it was a bidding war. All properties were in demand – single family homes, town homes, condos – and especially “fixer uppers”. Condo conversion sales were rampant.

Today we are in what is referred to as a balanced market. I feel Florida does not have a “bubble”…but a correction to a more balanced and affordable way of living. Inventory and pricing are returning to realistic levels in what is really considered the norm. By “correction” in the real estate market, Buyers now have a broader selection of homes and do not have to feel rushed to make perhaps an unwise decision in buying a home. Sellers are becoming increasingly aware and accepting that their home may sell for a lesser price than last year and stay longer on the market. This slowdown is considered, by many economists and realtors, as healthy as previous price increases outweighed income increases and boosted the median price for an existing home to unrealistic high levels. We are seeing some price reductions in some sectors but also appreciation. Everything is relative….home prices in other parts of the country are far greater than here evidenced by the large number of buyers, as example, from the northeast and internationally. All this leads to the following prognosis – the bottom line is that the immediate future will be sluggish, but a stronger market will return next year.

Yes, we have a downside if you think of hurricanes but that is a way of life here and is being accepted by Floridians as fact. Mortgage rates have increased – this was expected. As for the mortgage rates, there is an unprecedented rise in creative mortgage financing products that enables more people to afford to buy a home.

Let’s look at it this way: we are living in a utopian environment!

Florida is a lush and beautiful state, surrounded by water on three sides with a multitude of inland lakes. We have opportunities every day to play on an abundance of golf courses, tennis courts – walk along the beach on either the west or the east coast, take a lazy day and drive up to the oldest city in the United States: Saint Augustine or drive to the most southern point in the United States: Key West. We don’t have to put on layers of wooly, itchy clothes in January or February, can go for a swim in the ocean almost every day of the year, can have picnics with our kids or friends in the prettiest parks in the country, and “smell the roses” every day as flowers bloom here all the time.

Our state certainly has an abundance of natural resources.

Researchers found that as long as the economy continues to create jobs and builders trim production to match slowing demand, house prices will keep climbing and the housing sector will likely achieve a soft landing. Although I do not have a crystal ball, I believe that buying property in Florida will continue to be a very good investment.