Despite the overall feeling that the economy is still faltering real estate agents and investors are constantly shouting that the housing market is about to rebound any minute and home values of real estate in Southwest Florida are about to bounce back. So as a Florida home owner should you wait it out and try to sell your property later when things might be better?
Clearly selling your home for less than you paid for it doesn’t feel good at all, especially if you have a big mortgage on it. However if you are in financial trouble waiting to take action normally just makes matters worse. This is especially true when it comes to real estate as it can take months to sell a property.
It is true that there are indicators that the housing market is going to begin to improve. Many areas are even seeing increased sales volume. However the facts show that in general Florida home prices are still slipping and will continue to do so for some months. On top of this there is the giant tsunami of foreclosures that have been backed up and are about to flood the market in early 2011. This certainly means not just Florida homes but homes across the US are at risk of even further decline or at least a stall in improvement. This may not be long lived and hopefully the housing market will see a solid and positive up tick in the second have of 2011 that will continue for many years. However let’s be clear about one thing. Florida home prices are not going to suddenly bounce back to their 2005 highs overnight. There will be plenty of profits to be made by investors and those buying Florida homes at their current record lows can definitely realize one of the best investments of their lifetimes. However growth will be slow. Banks are still suffering serious wounds as are the investors who bought up mortgage backed securities in the past and we are definitely unlikely to see jumps in home prices like the recent boom for many decades to come. Steady 5% appreciation is probable and we may even see homes back at their previous lofty highs in 8 years from now. Though this is certainly too long for those in trouble now to wait to sell their Florida homes.