This might be the best time to buy Real Esate

Here I am with a few good news and some bad news too.

One of the good news is that we in a BUYERS MARKET. The next good news is that SELLERS ARE UNDERSTANDING WHAT A BUYERS MAKERT MEANS. Among the bad news is that there an inventory "mountain" that is hard not to see!.

South West Florida, mainly in the Fort Myers-Estero-Bonita Springs-Naples corridor had a bonanza of development with all kinds of construction going, with the usual mess that all that brings about. Last year, during the Sellers Market (the period defined by greedy sellers and investors flipping homes like pancakes) developers, resellers, as well as listing agents were in a feeding frenzy. They were all asking outreageous prices for their properties. Now they are partiently waiting, and waiting. and waiting for the buyers to show up. Even the ethernal optimist "National Association of Realtors" is recognizing that the market has "slowed down a bit"... that's been an optimist, allright!

In the last couple of weeks, I have seen all kinds of games going on. Listing agents stuck with a bunch of properties, trying to sell them by offering bonuses of all kinds to the surviving bunch of us (the bonuses included a vintage Jaguar, a new Toyota, travel to exotic places and of course CASH$$$$$). Sellers were also trying to put their two cents in the form of seller contributions (sellers paying all buyers closing costs). buydowns (sellers putting some money in the buyers pockets to help them carry their mortgages), and cutting down to more realistic figures their asking prices.

At the same time, Institutions like Banco Popular were opening their doors to undocumented borrowers seeking mortgages. I'm applauding Banco Populars efforts, provided their executive reps were complying with the spirit of Banco Populars vision!.

A side bar of that will be that the other reason why I applaud Banco Populars initiative is simple economics, idiot!
Undocumented aliens are a reality in our society. Nobody can denied that. The chinese build the Great Wall of China to keep invaders from coming in and they did, the Soviets built the Berlin Wall and it falled and people were getting kill trying to go thru it... are we loosing it now?
Undocumented aliens, specially from Central America, are sending billions of dollars to their native countries. Even supporting the economy of these countries. The main reason why they do that is that they feel isolated here and afraid. They want to build something, somewhere. They look at their country of origen as the solution to that. So they send money to build homes or buy businesses there. That's the main reason why they do that. We need to counter that! Good chunk of that money send overseas will stay here given the right opportunities -- one of these opportunities, I'm sure is buying a home. Remember -- my home is my castle; home is where my heart is!

Other lenders were also doing something to entince prospects to buy homes -- decreasing their no doc limitations, decreasing the minimum credit score needed to apply to certain loans, and so for. My conclusion here is that the Housing component of our economy will do just fine!. See the graphics below.

Now, going back to the real estate market. I believe this is the best time to buy. Even for investors. Since the interest rates are not so kosher for most mortals and we need to remember that like 60% of our population have regular to poor credit scores. So people unable to buy a house for this reason, are back as renters in the market. Enter the investor, who now can cover their expenses well and back into the game for good.