The Wall Street Journal recently reported several indicators that 2011 will be the bottom of the real estate market (Why 2011 May Be the End Of The Housing Crash). Here are a few of the highlights:
- Taking a look at house prices and incomes, housing is the most affordable it has been in decades. Right now, the cost of a house is about 19 months of total pay for an average family – that is the lowest level in 35 years. At the height of the market, we saw house prices equal to 4.5 years of pay!
- Scott Simon a managing director at money-management firm Pimco in Newport Beach, California who foresaw the housing crash and helped his firm dodge losses that plagued Wall Street states “housing prices will probably bottom in 2011″. Mr. Simon says prices may dip another 5% but considering that in some markets they have already dropped by half, this figure is inconsequential.
- Investors are back in the market: In Miami over half of the transactions are cash deals which is a sign that investors are betting on a rebound.
As a Realtor who specializes in Coconut Grove, I feel that we are already starting to see prices stabilize. In most segments they haven’t started to creep up yet, but that is just a matter of time. With so many buyers out there ( a recent short sale that came on the market on Nocatee Drive had 9 offers – many were over asking price – on the first day) simple economics tells us that prices will slowly trend upwards.
When listing or buying a home it is essential to have a local Realtor who knows the numbers, tracks the market and can value a home correctly. If you are interested in buying or selling real estate in Coconut Grove and are looking for an experienced Realtor please do not hesitate to contact me at 305.342.1623 or send me a message here.