Realtors® are supposed to be trusted advisor – providing consumers with industry knowledge needed to make one of the most critical financial decisions they make in a lifetime. In the current environment, South Florida Realtors® regularly declare that “Now is the time to buy.” Should you listen to their advice?
Before you decide, you should consider what Realtors® were saying back in 2005 in the peak of the bubble (long before the 40% price reductions we’ve seen in South Florida).
One my favorite “trusted advisors” is Ron Shuffield, President of Esslinger-Wooten-Maxwell. In 2005 he wrote an essay title, “Bursting the Bubble Talk” (Click to see the whole article) Here are some excerpts:
“While the growth in South Florida values will probably not continue at such heated rates for the remainder of the decade, most acknowledge that we will experience rates of growth far-exceeding national averages. The long-term perspective for our markets is one of continuing world-wide attraction.”
“Just about everyone agrees that thousands of newcomers will continue to purchase homes in Florida, either as permanent or part-time residences. As the demand increases for homes and the supply of developable land decreases, South Florida values are going to rise. It’s that simple.”
“It’s not a question of, ‘if we build it, will they come?’ They’re already here… hence the growing demand for first, second and even third homes. It’s a great time to be living and working in South Florida.”
I'm sure at least some people bought homes in 2005 based on this advice.
Stumble It!