Jim's Brevard County Real Estate Blog

FLASH ALERT! 12 March 2007

At this time I want to get the word out to my buyer clients that this is NOW the time to enter this market and buy. Economic and sales data suggests that the bottom was reached sometime in Sept-Oct 2006 and we are now entering a new phase that will trend increasingly toward higher prices and reduced quality inventory. Global growth remains red-hot. Countries such as China, India, Russia, Brazil, Australia etc. are accelerating into their industrial expansions. This will put an ever increasing demand on world resources such as timber, steel, concrete, all oil based products (e.g. roofing, asphalt shingles), copper and much more. This means current housing inventory, especially condos, can NOT be replaced or rebuilt at the current low prices. Given the population migration to FL and the national population growth (a lot of immigration) this imbalance can not last longer than 8 months. I project the housing market to be back again in a Seller's market in 9 - 18 months. Here in Florida we also have another interesting demographic shift. That is, an internal migration north from South Florida's high density, lower-quality lifestyle to the central FL regions. Brevard county, being in the east-central region is a particularly good situation with low crime, ample economic growth and unbeatable lifestyle choices. Orlando residents are increasingly discovering that we are their weekend backyard and are buying up great beachfront and riverfront deals as 2nd homes to escape for the weekend from the congestion of the metro lifestyle to the relaxation and tranquility of our coastal community.

Again - this is the best time imaginable to be cherry picking the best of the best properties. I highly recommend buying waterfront and the largest homes you can qualify for at this time to get the most efficient cost per sq-ft return on your investment. 

Also note that Home Mortgages are currently in a near term favorable low rate trend that appears to also be bottoming. BUT, I expect rates to start trending upward over the next 6 months as investor and private equity present in current global liquidity are drawn to higher yields (equity & growth markets). We may not have these current low interest rates on conventional 30 year mortgages for more than a month or two. Get in now before the lending industry, under pressure from government is forced to increase loan application fees and restrict access to borrowed money.