Should I buy now? The paradigm has shifted for Treasure Coast home buyers but this is a great time to buy for those with a good credit score, a modest down payment and the need for a home to live in for the next several years. Here are ten compelling reasons to buy a home now:
1. Selection
There is over a three year combined supply of resale homes on the market in Martin county and Port Saint Lucie (the "absorption rate"). Regardless of your price range, there is an abundance of homes from which to choose. Just two years ago the absorption rate of resale homes was less than ninety days. A buyer was forced to make compromises if they were going to find their home of choice. Now with a great selection of single family homes, condos and townhouses there are plenty of options for Florida home buyers.
2. No bidding wars
In 2005 buyers frequently bid properties up from the original listing price. Buyers would outbid others by thousands of dollars. There is no competitive bidding in this buyer's market! You can make an offer- today's sellers will not be insulted if you present a "low ball" offer!
3. Patience is rewarded
In the hot seller's market that existed everything was rushed. You had to find a house before other buyers then the pressure was on to make an offer. Today you can take your time, look at a variety of homes and think about your options.
4. Due diligence is tolerated
In this market you have time to obtain and consider ramifications from a home inspection, termite inspection and appraisal. In 2005 buyers often waived these contingencies in order gain an advantage over other bidders.
5. There are plenty of "spec" homes
Previously a buyer had to play by the builders' rules if they wanted a new home. There were lotteries and waiting lists for new construction. Some buyers camped overnight in order to get to the head of the line. Builders now have hundreds of spec homes ready for immediate occupancy.
6. Repair requests are welcomed
In the past most sellers listed their home 'as is'. There were back-up buyers waiting for a primary buyer to upset the seller whose home was increasing in value almost daily. Today, after the home inspection, the buyer can negotiate repairs or concessions with the seller.
7. Few investors
It is estimated that one third of all sales in 2005 were to investors. These non-owner occupying buyers caused the market to inflate and affordability to decline. Mortgage fraud became commonplace. Now it's a great time to buy without having to compete with hundreds of prospective flippers or landlords.
8. Location
Today's buyers can find homes closer to work. In the past buyers flocked to distant sections of St. Lucie county and beyond in order to find affordable homes. In this market, affordable homes are within reasonable commuting distance of West Palm.
9. First time buyer opportunities
Starter homes have returned to pre 2005 prices. You can pick up a resale for less than $150,000 and new construction under $200.000. Short sales, foreclosures and handyman specials afford first time buyers many opportunities for homeownership.
10. Financing is available.
Zero down, no doc, adjustable, sub-prime loans are harder to obtain or unavailable without stellar credit scores. But fixed rate mortgages, FHA financing, first time homeowner bond programs or special loans for teachers and police officers are available.
With all of these factors at play this is a great time to buy real estate in Florida!
