Statistically speaking, real estate activity closed out 2008 on an up note.
The change in sold residential listings from November to December of 2008 indicates an increase in volume of 29 percent. From December of 2007 compared to December of 2008, residential sales volume increased by 13 percent.
These are the statistics from the Multiple Listing Service reports in Brevard County.
On all types of properties, the sales volume increased from November to December of 2008 by more than 18 percent.
The increase from December 2007 compared to December 2008 was more than a 6 percent increase in volume of sales.
The overall market comparing each and every month in 2007 to 2008 indicates that sales volume showed a decrease of less than 3 percent. The significant increase in activity came at the end of 2008 indicating positive signs for real estate in Brevard County in 2009.
Bottom line: Consider this an upswing in the market.
Where are the best buys? The average sale price in Brevard County for 2008 is in the $152,000 price range. This price range shows the most activity because there exists an oversupply, and one can purchase in the price range for approximately the same monthly payment as one can rent.
Let's look at the numbers.
A mortgage payment on a $150,000 home would compare favorably to a $1,000 a month lease.
Many buyer assistance programs are available to those who can qualify for the payments.
Please contact a local lender for a list of "down payment assistant programs" available to you.
Payments on 80 percent of the purchase price at 5.25 percent on a 30-year fixed rate mortgage are $663 per month. Adding in an estimated $210 per month for taxes and $150 per month for insurance, one can have a "tax benefit" and enjoy all the rights and privileges of "home ownership" for $1,023 per month. Please note that there are many, many properties available for under $100,000.
Residential homeowners who are looking to downsize in the future should look at buying now and renting out their newly purchased property until such time as their lifestyle indicates the need to downsize and move in to their investment property. Proceed with caution when purchasing property for rental purposes even if just for an interval time period.
One year's payments should be in your savings account along with a reserve for maintenance and repair. This is a protective measure for loss of rent, which could happen, in today's market.
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