HOUSING RECOVERY CONTINUES

South Florida home sales continue to register strong gains!  roughly 3/4 of the properties being sold are priced at less than $300,000.

Sales of existing homes were up  26 percent in Miami Dade County and 32 percent in Broward from a  year ago.  Condo sales exceeded single family home sales in October.    In Miami Dade, sales were up 47 percent from a year ago and in Broward, they were up 68 percent.  Dade rose 5 percent in month to month sales from last month.  The national increase in home sales rose 10 percent  from September to October.

Here is a break down of the current inventory of homes and condos in Miami Dade

• Under $100,000   Four Month Supply
• Under $300,000   Eight Month Supply
• $300,00 to $1 M   21 Month Supply
• $1M and over      Four year Supply

One of the reasons for these gains is the extension of the one time home buyer credit of $8000. In addtion,  interest rates are at the their lowest level on record.  This last month the Treasury sold  $30 Billion in T bills at a rate of .040 percent.  That is the lowest level ever.  That translates into a 30 year fixed home loan rate of about 4.74 percent!!!!!!

This is bad news for savings accounts, but good news for home borrowers.  But this will NOT last.  This is the lull before a major storm.  The Fed is spending TRILLIONS that it does not have.  The are borrowing and PRINTING money.  That WILL come home to roost in the form of high inflation and of course HIGH interest rates to try to control it.   Real Estate is traditionally a good investment hedge against inflation. If you dont have a fixed rate low interest rate loan yet.  DO IT NOW. DONT WAIT!!  or you will be sorry!

For Americans,  This is a two edge sword.   Foreign buyers are snapping up the best deals right now with stronger currencies.  Americans are still facing decreased equity,  lost jobs, high unemployment and a government out of control with spending.  That is the current model.. In an inflationary model,  our home prices WILL rise for sure,, but so will our borrowing costs.  Foreigners will be still be able to walk in with more valuable currency exchange rates and purchase.  If you can purchase now,  I would.  There are GREAT deals out there right now.. AND  the rental market is starting to improve.  Hold and Lease if necessary.

RECOVERY ON THE HORIZON

A housing recovery is fulling in the works. The average price of a home in Miami Dade County has risen by an average of 1.5% each month for the last three months. This includes Condominiums, which have suffered the largest declines in value due to overbuilding.

The nexus of shrinking inventory, the extension of the home buyers credit by Congress, the continued low interest rates and spector of inflation not far on the horizon, have all combined to put a larger number of buyers in the market.

In the Beach front condo market, the largest group of investors continues to be all cash buyers from off shore. Miami is now the cheapest of the largest Latin American cities. That couldnt be said just a few short months ago. Now Miami is a bargain for buyers compared to Buenos Aires, Rio De Janerio and other destination cites.

Real Estate also continues to be a hedge against inflation. The price of gold and other precious metal commodites have truly outstripped the cost benefit ratio that still exists in Real Property. In times past, as will be in the future. Land and Property are a hedge against a falling dollar and a tax haven for write offs, especially if it a rental property.

I keep saying it, but NOW is the time to jump in. The very best of the very best deals are already gone.. But there are still great bargains to be had... DONT miss out.. The best time to make money is when the market is DOWN,, not UP... People get that wrong all the time. Band wagons in investments like stocks and yes, real estate, are usually headed over a cliff if there are to many people jumping on... The market is swinging.. All in the indicators are that the bottm has been reached and the time is now to buy in.