There is a difference especially when it comes to your bank account
When it comes to real estate, knowing the numbers is more than a little important. Back in 2005-2006 the numbers were looking more than a little crazy. We told anyone who would listen that it was a great time to sell. We sold our house and rented for about 6 1/2 years. In 2011-2012 the numbers were more than a little crazy the other way and we told anyone who would listen it was a great time to buy. We took our own advice, stopped renting, and bought a home.
What happened, we all know all too well. From the market highs when we were saying sell, sell sell, median single family home prices in the Northern Palm Beaches fell by about 37%. Condo prices proved to be much more more volatile and dropped by an amazing 55%. From the market lows of 2011/2012 those median priced single family home prices have jumped by about 38% and the median priced condominium in the area jumped by about 59%. Yes, watching the numbers is important, if you want to make educated decisions.
Years ago, I remember sitting in a “training” class at the brokerage where I hung my license, listening to the broker put in a pitch for a property of his he was short selling. In the next breath he was telling us about a great new class they were teaching “scripts” about how to sell your clients on how paying you an 8% commission was to their benefit. I decided right then and there, I wanted to focus on my customers and show them the real numbers. I wanted to make sure they were educated, not sold. It has been my passion ever since. I didn’t want to learn “scripts” to sell people, I wanted to know the market so I could educate people. Money was not my passion, honesty was. So I started blogging. I started telling you about the numbers. I started my own company, so I could show you even more.
The numbers still look strong, the market still looks solid, but beware. The market changes daily and it can change quickly. We still are about 40% below the all time market highs when it comes to median condo prices. We still are about 15.5% below the all time record median price for a single family home in the area. This market has room to run. But it doesn’t have to. Be careful out there. Real estate costs a lot of money here in paradise and mistakes can be very costly. Education is free but you have to seek it. Do some searching and find out if your Realtor has been spending their time learning to sell you or to educate you. It truly can make a huge impact on your financial well being.
Paradise Sharks Real Estate