Regardless of the current economic conditions, most first-time home buyers are eager to purchase. And why not? With prices of homes and condos in South Florida as low as they are, and an $8,000 tax credit if they make their home purchase by December 1st of this year, this pool of buyers is possibly at a great advantage if they plan to stay in their home for at least 5 years. Home sales were up by at least 33% in Palm Beach County and 39% in Broward County in February, according to the Florida Association of Realtors. Much of this increase includes home buyers that years ago qualified for home loans, however, the homes that would suit their needs did not fall into their price range.
For many of the frustrated searches who began looking in or around 2004, when home prices had soared, buying a suitable home for a reasonable price was not a realistic option. But since then, home prices have dropped on average 18% each year. But with the job market continuing to plummet, will these new home buyers be able to even maitain these newly purchased bargains?
There is also a pool of buyers who have been accustomed to renting, who now realistically have the option of looking at buying as an alternative. The value of even their current rental home or condo could possibly be less expensive to own than to rent.
The big question on every-one’s mind, will this increase in home sales continue on throughout the year?
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