A glut of homes for sale makes this a great time to buy in Miami real estate and other markets. Here's what some of these real estate markets look like:
If you're searching for Florida real estate, luck is on your side. Numerous listed homes and an overabundance of condos added with too few buyers means you've got the upper hand.
Want all-new appliances in your new home or $20,000 knocked off the asking price of your condo before you sign? Chances are sellers in Tampa and Miami will be willing to comply.
The Miami real estate market as well as Minneapolis and Kansas City, Mo. all three currently favor buyers, thanks to an overabundance of supply and low sales rates.
How do you determine if a specific market will be beneficial to the buyer? The easiest way to is to analyze the area's housing supply vs. demand by taking the current rate of sales and figure out how long it would take to burn off the excess inventory at that rate.
If the result is a relatively short period you can be sure that properties are selling quickly. If it's high, properties are stagnant and have or will be on the market for a long period of time. In which case real estate prices can often be bargained down which makes it a buyers market.
Using information gathered from the National Association of Realtors you can determine which real estate markets are most beneficial to buyers. Using statistics from excess inventory and the change in the sales rates over the past year you can measure the relative tightening or loosening of the market. To prevent the list from plummeting you then add a measure of price stability.
RESULTS
The result is a completely in-balance market with rankings that reflect the current housing market.
The top cities for home buyers:
American cities with populations of 500,000 or more, like Tampa, are considered the best market for buyers. Due to overbuilding as well as the change in insurance underwriting and lending conditions Miami real estate ranks third in the list as a top buyers market. If Sarasota, Palm Bay, Tallahassee or Pensacola, all cities in Florida, had larger populations, they would have made the top 10.
As with Miami real estate, Chicago has also felt the effects of a housing supply growing faster than demand and comes in at number five. Brokers say 2007 that it has been a slow year, and data supports that.
Milwaukee had a moderate sales-to-listings ratio and came in eighth. According to the U.S. Census Bureau the city has an extremely low vacancy rate of 1.1%, The future of Milwaukee’s real estate market doesn't look quite promising and its lack of an inventory looks like a price decline for the city in the third quarter of 2008, but based on other economical factors, they are expected recover slightly at 0.4%.
Between now and October, when the market typically slows down and depending on how much inventory these markets burn off at that time, we will then be able to determine the overall state of the real estate market. We can expect to see significant price declines in these areas if real estate sales don't pick up and inventory issues resolved.
Contributed by Miami Luxury Villas
