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Real Estate Bottom? September 3, 2008

Posted by shaferfinancial in Uncategorized.
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In the county I live in Florida, real estate prices went up 1.6% last month.  This is after two months of flat pricing.  So, for the last three months we see a 1.5% uptick.  Nothing to write home about, but definitely a change from the 10% drop the quarter before.  So have we hit bottom here?  Not one to make predictions on market bottoms, but the environment has certainly changed.  I certainly wouldn’t argue that the real estate market is healthy again. 

So where are we now.  Well credit for all those with little credit issues has gotten more expensive.  Those with big issues are locked out now.  Down payments are now required, even by FHA (After October1).  Rates are still historically lower than average.  Supply is still high, meaning it is a buyers market.  Foreclosures are still an issue, although this seems to be more about recent job losses than anything else.  Credit issues is general are being seen in all credit markets (credit cards, auto’s, mortgages) lending credence to the thought the business downturn is the cause. 

Rents still have some downward pressures.  And of course some areas of the country are much stronger than others.  However, if we are starting to see trend reversals in my county in Florida, which has been one of the worst hit by the real estate downturn and unemployment, then other areas can’t be far behind.  Why is this important?  Well, as real estate goes so does people’s attitudes.  And it is peoples attitudes that will change the economy.

Just some thinking points for folks out there.  Have a great day and increase your wealth!!!!!

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