As a real estate agent I am often asked how I see the market in the next year.. Wow, I wish I knew, I see a lot of transactions happening and a lot of scared buyers. Working in this business for the last 7 years, I have seen high times and I have seen the lows. Right now in Florida especially in South Florida we have a glut of property on the market and we have a ton of people coming and wanting to buy, but fear is what holds the market back. What creates less fear, less inventory, we have learned it is not lower interest rates..
The is the first time I have seen people with money, people who could afford big homes not just getting what they want... They are waiting for deals as the reason they now have money, but at what point do you just give up and get what you want.. A new product comes out, you say I have the money but want to wait for the sale, and the sale just doesn't happen, and then you just can't wait anymore... When do we hit that point?
In real estate does that point happen? In the Palm Beach area, I see many sellers hold steady on there price, they are firm, when does firm take them of them off the market, or even better find them an amazing emotional buyer. So when does this market change, when will banks do principal reductions so people aren't paying for something that no longer has value, when will short sale be over?
Anyone that is willing to sell as a short sale, give your keys to the bank, no bank fess this way. Anyone that wants to stay, do a principal reduction with the understanding if values go back up the life of the loan so can the principal, loan value goes with market value and can be reduced every 3-5 years.. They do these types of GAP insurance policies on cars, where is my GAP home reductions policy?
Hey maybe thats the answer, GAP insurance on home loans, the answer to al our problems, NO more fear, no more hesitation, add a point, point and a half to the loan for SECURITY...