Why isn't now the time to buy?

I don't know. I keep hearing over and over again about buyers that want to "wait till we hit bottom". What does anyone say to that? I know we can't simply say you need to buy now because we're getting a new airport, or because I just feel it. So, what do we say?

Here's what I do.

I use facts and figures. I tell anyone I can get into a conversation about this that over the last 4 months the inventory for homes in zip code 32413 (Panama City Beach West End) has not moved up or down significantly. This is both good and bad. We need the inventory to shrink for appreciation to come back to the market. However, because the inventory is not climbing, we can see that the market has stabalized a bit. I tell them that now is indeed the time to buy, because the buyer has choices. We won't know where the bottom was until we pass it. At that point, the inventory will be shrinking and buyers will have to buy whatever they can get. They'll definitely have fewer choices. I provide sales data like the number of condos that are selling a month in Panama City Beach......an average of 100 +/- split 50/50 between new and resale. (We had a nice jump in August with over 300 sales.

The next thing I usually get is that it's not a good time to buy real estate because the investment won't cash flow. I say, "Yes, you are right.". You definitely don't need to buy a house, condo, or building that doesn't pay for itself as a pure investment. There are better investments out there. However, if you want a place on the beach that you can use, then that's immaterial. Enjoy, rent as you can, and hold for the future. You can almost pick the place you want with the current inventory. Oh, by the way....this market over time has appreciated at 9-12% a year. That's the rub. Buy what you want. Enjoy it. Make money 5, 6, 7 + years later. If you live here, and want a bigger or smaller place, now is the time to buy. If you always wanted a place on the beach, now is the time to buy.

The next comment that comes is what about taxes and insurance. I tell them that it's not as bad as it's made out to be. Yes, we saw large jumps in taxes, but we also saw huge jumps in value. The Florida legislature, and our governor are being extremely proactive in working to cut property taxes. They're worked combined with the market pulling back are stabalizing our tax environment. They've also worked to stablize the property insurance market here. The governor's office is pushing the insurance companies to provide insurance and provide it a more reasonable rates. The fact that 2 years of no storms (knock on wood) has allowed us to replenish the catastrophic fund has held to comfort the insurance market. We are starting to see some relief in both areas.

When I go through this line of reasoning with people, the change in their demeanor is amazing to watch. They go from skeptical, to thoughtful, to excited. Every time we leave the conversation with them saying, "I've got something to think about.".

The next 6 months or so will present some amazing opportunities to buy real estate. If you or anyone you know ever wanted to have a place on the beach, think about it.