Canadians looking for a second home in the U.S. will find location is still important
The decline of Real estate values across America has affected the price of homes in virtually every city in America. Homes in many areas are now being offered at prices that have not been seen for years.
Stories about the bursting housing bubble look for an explanation. These stories point to the lack of available credit that has in turn resulted in a lack of financing for real estate, they point to a faltering economy with major job losses being announce every month, they point to a lack of buyers and describe a real estate market that was overbuilt and over priced that was spurred by easy credit and over-zealous buyers and sellers. Whatever the reason, the simple fact is, there has been a serious erosion of value.
While the market might be priced right for buying that second home in the US, it is still important to realize that looking for the house that fell the most in value may not be the right path to finding the best value. In fact, you might find that the home with best value is not in an area that has been crushed.
“The three most important words in real estate are; location, location and location!”
Will Rogers
This is sage advice and it still holds true today. The very first thing that you should want to determine in your search is the location for your second home. We receive calls every day from people that simply say; “I want a place in Florida.” Well, Florida is a pretty big state and has a lot to offer so it is important to be able to narrow that search down to at least a city and then to at least a neighborhood.
“It’s how you live!”
Artist - Point of Grace
Almost everyone will agree that where you want live is important, but how you want live will eventually weigh heavy on your final choice. When you are looking for that second home, you should be able to list the amenities and activities that are important to you.
“If it sounds too good to be true, it probably is”
Quote: Almost everyone you know!
There are not that many things that actually reflect their true value like real estate does. The value of real estate is constantly in flux and determined by a cocktail of influencing factors. There are indicators that are easy to find that will report on the market; like amount of time it will take for the current demand to absorb the current number of homes that are being offered for sale, the average number of days that a home is staying on the market before it is sold and the relationship between the asking price and the selling price of the home. There are other factors like the actual price of the home, the availability of financing and the total monthly cost of ownership that also influence the demand and eventual value of a home. The condition of the local economy will also influence the value of a home. Is the local economy creating jobs or losing jobs and what kind of paycheck is associated with the jobs that make up the work force? There is a lot to take in.
The bottom line is that just because the price of a home has fallen to an all time low does not make it a great buy. Location is still the most important factor when you are searching for that second home
By: Harold Green
Central Showplace
May 19th, 2009 at 9:45 pm
[...] with solid financials showing interest in the market. They are also reporting a slow rise in foreign interest in US real estate. Although these foreign real estate investors do not qualify for tax incentives, however the [...]