Real Estate in Northeast Florida and Around the World

I talk to people on a regular basis who are sitting on the sidelines, waiting on the bottom of the real estate market to be found.  They all ask for my opinion as to where I think the bottom is, and those that know me, understand that I will always give honest feedback. 

The answer that I always give is "by the time you know where the bottom is, the prices are climbing again."  That is followed by "and it's only a buyer's market if you are buying".  The truth is, no one knows where the bottom is.  Are we close to the bottom in Jacksonville?  I think so - for what that is worth.  Buyer interest is increasing, inventory is reducing and interest rates are the lowest in over 30 years.  Does that mean that the market will "boom" again anytime soon?  No - but it means we are seeing signs of the return to "normalcy".  Yay!!!

The fact is, the DOW has fallen from it's peak of near 15,000, down to the 7,000 range.  That's over a 50% drop.  In our market, real estate has fallen on average from 15% to 30%, depending on the type of dwelling and area of community in which the property is located.  My point is that when investing for the long haul, where is the safe bet?  Real estate.  Everytime.  Real estate isn't made at the rate it is consumed - and for that matter, the areas where real estate is being made are not necessarily places in which most people generally will want or be able to live.  So - if you are looking for house, and you are looking for a long-term investment - 5 or more years - then Real Estate is where you should be putting your money.