The Housing Market Bubble is still Bursting!
What you can do about it? Well for starters, look at history. The last time we had a Real Estate Crash in Florida it was about 1920. Well it took over 10 years to clear the dust. The same thing happened in Japan several years ago and it took over 12 years to recover. The current Bubble burst in the Summer of 2006. So we are not going to see the bottom until late 2009.
So what does that mean? If you own a home and want to sell it, you have to offer it for a lower price than the competition. I am in the same boat. I bought a house in Homestead Florida Pre-construction and I closed in the Summer of 2006. What a big mistake.
I would have been much better off walking away that day. They would have kept my 30,000 deposit which I lost anyway. Well that is unless I am willing to keep this house for at least another 6 or 7 years! And then I payed over 20,000 closing costs and now the property went down even further and I will have to short sell it for $30,000 less than I owe the bank. So if you are interested in paying $250 K for a house that cost me over $325 K, you can have it. The builder won and I admit it.
The same thing goes for you if you are about to close on any type of Pre-construction property, house, condo etc. Go to another Realtor and pretend that you want to buy the exact same type of unit. If you can find one for a price that is less than your price that your contract says. Well that forget about your deposit. It is lost, unless you have 6 or 7 years time to wait for the Real Estate Market to pick up again. I mean some Miracles do happen, but don’t let that builder or Realtor leave you to believe that the Market will be back on track next year.
I say no way my friend. It just aint happening anytime soon. Not until 2010 or so.
