Prices of real estate in South Florida have fallen so drastically over the last five years that over 2/3 of the condominiums and nearly 40% of the single-family homes are priced below $250 thousand, according to Condo Vultures LLC. Five years ago, during the peak of the real estate market, the median sales price in Miami-Dade County was $351 thousand.
Currently, Broward County real estate inventory shows the most residential properties listed below $250 thousand, with Miami-Dade not far behind. Since obtaining financing to get in on some of these incredible deals has been difficult, investors are buying up the lower priced properties using cash.
Two of the major programs that have been enticing buyers for months, expire this spring. The home buyer tax credit, offering a tax credit of up to $8,000 for qualified first time homebuyers as well as a tax credit of up to $6,500 for qualified repeat homebuyers, expires at the end of this month.
The FED is buying $1.25 trillion in mortgage backed securities in an effort to keep the mortgage rates at around 5%, however those purchase are expected to end at the end this month as well. However, there is talk that the FED may continue those purchases for an undetermined amount of time.
With the low home prices, tax credits and low mortgage rates, what better time to invest in real estate than now?
