Existing single-family home sales were up 23 percent in Miami-Dade and 46 percent in Broward in October. Condo sales increased 30 percent in Broward and eked out a 1 percent gain in Miami-Dade. The median price for single-family homes in South Florida was $246,800 in Miami-Dade and $252,500 in Broward. For condos, the October median price was $197,400 in Miami-Dade and $115,200 in Broward. In Palm Beach County, October sales increased 37 percent from a year ago. The median price of single-family homes was $264,600. Palm Beach County condo sales rose 23 percent, and the median price was $135,800.
Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com
Monday, November 24, 2008
Friday, November 14, 2008
FDIC Unveils Aggressive Mortgage Plan
Today the FDIC unveiled a plan that would help past due borrowers. It is still only a proposal and needs to get the Treasury Department's approval. Otherwise it would need to get approved by Congress or wait for review by President-elect Barack Obama's administration. The plan is very interesting and has the potential to help nearly 2.2 million borrowers. The plan would cost an estimated $24.4 billion, which could come from the $700 billion bailout Congress approved last month. To view more information on this mortgage proposal, please click on the link below to view the article from CNN.
Mortgage Proposal Article
Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com
Mortgage Proposal Article
Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com
Monday, November 10, 2008
Should I Buy or Should I Wait?
The question almost every potential home buyer is thinking now is - should I buy now or should I wait? I get asked this many times each week. Based on the research I have done, I definitely know that now is the best time to buy. Coming from a Realtor, it doesn't mean a whole lot, especially if I get paid to sell homes. So instead of you just taking my word for it, I figured I would give you some information that should help you make a much more informed decision.
As you may already know interest rates have been very volatile and since the beginning of the year they’ve increased. The good news is historically speaking they’re still very low...a conforming 30 year fix rate loan is currently ranging between 6.0% - 6.5% with zero points.
Although rates have remained historically low most experts agree they will move higher sooner than we think! One reason for this expectation is that the Federal Government controls inflation by increasing interest rates…and inflation will most likely become a serious concern very soon.
Take a closer look at the potential risks of waiting for home prices to continue to drop versus the potential benefit. Let’s assume we waited another full year and let’s say home prices did indeed drop another 10%. During this same time frame let’s assume interest rates increased by about 1%. (Note: interest rates were at 5.5% in Feb 2008 and now they’re consistently above 6%. Therefore, assuming a 1% increase one year from today is very realistic and might even be considered to be a conservative estimate.)
Here’s the effect this scenario would have in terms of our monthly mortgage payment:
Today…
Sales Price $250k
Down Pmt. $50k (20%)
Loan Amt. $200k
Rate 6.25%
Payment $1231
One Year Later…
Sales Price $225k (10% less)
Down Pmt. $45k (20%)
Loan Amt. $180k
Rate 7.25% (1% higher)
Payment $1228 (potential benefit of waiting…save a whopping $3 per month)
The potential risks (reality) we face by playing the “waiting game” or trying to time the “bottom” of the market:
- Lenders continue to tighten their guidelines making credit less available
- “Life” happens and our current ability to qualify today may be affected tomorrow
- More buyers/competition will enter market and create bidding wars which results in price increases
-Purchase after 12-31-08 and we’ll have to wait until 2010 to benefit from Homestead Exemption
- Federal Income Tax Credit of $7,500 available today expires June 30, 2009
- The same dream home available today based on our needs will almost definitely be gone by next year
The fact is very few of us (if any) are able to time the bottom of any market correctly. By the time we see the “bottom” we’re looking at it through our rear view mirror which means the opportunities have past us by.
Unless you’re trying to save $3 dollars per month, the risks clearly out weigh the benefit.
Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com
As you may already know interest rates have been very volatile and since the beginning of the year they’ve increased. The good news is historically speaking they’re still very low...a conforming 30 year fix rate loan is currently ranging between 6.0% - 6.5% with zero points.
Although rates have remained historically low most experts agree they will move higher sooner than we think! One reason for this expectation is that the Federal Government controls inflation by increasing interest rates…and inflation will most likely become a serious concern very soon.
Take a closer look at the potential risks of waiting for home prices to continue to drop versus the potential benefit. Let’s assume we waited another full year and let’s say home prices did indeed drop another 10%. During this same time frame let’s assume interest rates increased by about 1%. (Note: interest rates were at 5.5% in Feb 2008 and now they’re consistently above 6%. Therefore, assuming a 1% increase one year from today is very realistic and might even be considered to be a conservative estimate.)
Here’s the effect this scenario would have in terms of our monthly mortgage payment:
Today…
Sales Price $250k
Down Pmt. $50k (20%)
Loan Amt. $200k
Rate 6.25%
Payment $1231
One Year Later…
Sales Price $225k (10% less)
Down Pmt. $45k (20%)
Loan Amt. $180k
Rate 7.25% (1% higher)
Payment $1228 (potential benefit of waiting…save a whopping $3 per month)
The potential risks (reality) we face by playing the “waiting game” or trying to time the “bottom” of the market:
- Lenders continue to tighten their guidelines making credit less available
- “Life” happens and our current ability to qualify today may be affected tomorrow
- More buyers/competition will enter market and create bidding wars which results in price increases
-Purchase after 12-31-08 and we’ll have to wait until 2010 to benefit from Homestead Exemption
- Federal Income Tax Credit of $7,500 available today expires June 30, 2009
- The same dream home available today based on our needs will almost definitely be gone by next year
The fact is very few of us (if any) are able to time the bottom of any market correctly. By the time we see the “bottom” we’re looking at it through our rear view mirror which means the opportunities have past us by.
Unless you’re trying to save $3 dollars per month, the risks clearly out weigh the benefit.
Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com
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