Ron Shuffield CEO of Esslinger, Wooten, Maxwell, Inc. (EWM) Â discusses how the credit market is impacting the current real estate market. Â Potential buyers have been on the sidelines and as banks begin to free up lending, coupled with prices lower than it would cost to build, an increase in buying activity is expected.
South Florida Real Estate Market Forecast 2009
Ron Shuffield goes on to say, “As we enter 2009, it’s important to note that while the changes to our residential real estate market during 2008 were unprecedented, the opportunities that are evolving today are equally compelling.Â When all is said and done, itâ€™s hard to imagine that we will ever see again a buyerâ€™s market similar to what we will experience in the year ahead.Â Â Â Opportunities abound to purchase all types of housing at prices that we didn’t dream possible two years ago.Â But, we will still have to dig out the real values.Â Â 33% of the total Miami-Dade and Broward MLS inventories are now listed as short sales and another 10%Â are listed as REO properties.Â That means that we are at a point where our buyersÂ are now finding exceptional values in almost 50% of our listing inventory.Â Â While 2008 was the year ofÂ ”analysis”, 2009Â will be the year of aÂ sharp increase in the number of homes sold.Â Our industry sold 43% more single-family homes and condos in the 4th quarter of 2008 than we did in the same period in 2007; and, we believe that we will continue to see many more sales in 2009 than we experienced in 2008.Â Our buyersÂ are recognizing the values that we are now offering.Â
And while yes, there are pockets where heavy foreclosure and short sale activity will continue to impact values, we are beginning to see a “bottom” to the market inÂ our most desirable buildings and neighborhoods.Â The rebound will be very building specific and neighborhood specific.Â Â CommunitiesÂ such as Weston, in Broward County, Â are already seeing sales activity at levels of three years ago.Â
Yes, as I discuss in the video above, credit standards are more stringent, which they needed to be, but there is ample financing available for qualified buyers at unheard of rates lower than most of us have seen in our lifetimes”