Florida Real Estate Trends: Renting, Buying, Financing at Your Own Risk Later
The Florida real estate market just can’t catch a break! With Obama’s new federal housing finance plan unveiled, including its proposal that government phase out the support of Fannie Mae and Freddie Mac, it’s unclear what the impact of such a move would be on the fragile housing and mortgage market. But one thing is for sure: Financing a home will continue to get more expensive.
While risk is high, so are the stakes… and the fees! Higher down payments, a lower cap on the guaranteed mortgage amount, and higher risk fees on associated with Freddie and Fannie.
What does this mean to you? If you are:
Home prices may have hit bottom, so now is a time to leverage the power of a cash offer in negotiating with desperate sellers who just “want out”, taking advantage of the banks’ desire to get short sales done NOW rather than later.
Rates are also likely to rise as the economy improves and the rock-bottom interest rates that have been protected by the Federal Reserve Board edge up. Like we said in our post this week, millennials have a better chance to get a return on investment over time, while baby boomers and Gen X might not ever recover.
This just may be the sweet spot with the best value for some.
It’s still a Buyer’s market, but with banks ready to deal on short-sales now is the time to get on with your life. Further, in some cases it may be possible to figure out a way to do a short sale and still take advantage of the attractive prices that the market has to offer.
We thought this video was appropriate, considering the lastest news on Freddie Mac and Fannie Mae: