Find Your Home!

Saturday, October 08, 2011

Why aren’t people buying homes in Brevard County, Florida?

On October 6, 2011 interest rates on 30 year mortgages hit an all time low at 3.94%.   That is a lot better than the interest rates in the early 1980s when they were in the 15-18% range.

The average selling price of a home in Brevard County, Florida that closed in September 2011 was $137,676.

Florida Median Sale Price
How much would the payment be on a 30-year mortgage for a $137,676 loan at 4% interest?

The payment for principal and interest (not taxes or insurance) is about $638 per month.  Add taxes and insurance and it is quite reasonable – probably much less than the cost of renting!

Home prices have fallen significantly over the past five years or so in Brevard County. 

Interest rates are at historical lows. Seems this should be a perfect time to buyer a home in Brevard County Florida.

So, why aren’t people buying homes in Brevard County, Florida?

  • It could be buyers are just scared of the unknown.
  • Combine that with the fact that recently qualifying for a mortgage has gotten more difficult!
Some things I predict… 
  • When confidence returns, prices will be higher.
  • When confidence returns interest rates will be higher.
  • When confidence returns, inventory will be tighter as builders have slowed new construction.
Because we all know one thing…real estate is cyclical

And what goes down will eventually go up! 

Follow by Email