Who do we listen to when deciding if it is a good market to buy or sell?
The National Association of Realtors (NAR) position remains optimistic that home prices will recover in 2008 as the inventory declines. Locally, home sales have been hampered by other factors such as escalating hazard insurance rates (when you can get it), high property taxes, and stricter lending rules (limiting the buyers). The Florida Association of Realtors has worked diligently to support state property tax reform going before the voters in January 2008 which offers first time home buyers a tax break. Even with all the "doom and gloom" from the media, the consumer confidence remains fairly high (83) in Florida.
At the same time, recent reports from MSN have listed several Florida cities (including Tampa Bay) in the bottom 10 places to purchase homes. According to this report, Florida prices will continue to fall for another 2 years. So, who do we believe? Is it safe to buy a home? If you ask most realtors in the area, St. Petersburg did not see the bubble burst in pricing that was forecast. It is a buyer's market. There is a large inventory with good incentives to buy. As long as your investment is not planned for less than one year, real estate remains a good investment.