I had a conversation with a customer today, an investor.

He says he doesn't see the market stabilizing but rather still declining.

I had the completely opposite view.

Why, because in just about every community I search through, I see several, if not many pending and closed sales within the last 90 days. That tells me the market is moving.

I also see something very telling. During this last down market, it used to be that when a seller decided not to take the first offer that came their way, the next offer would be lower.

These days I'm seeing second offers, (from a new buyer) that are higher than the previous offer. Also, the numbers show that the sales prices on recently closed listings are more than the actual list price. People are bidding the price up and are willing to pay more than list in order to secure a property. This is quite a reversal.

NEW NUGGET: REO's/Bank Owned Foreclosures are no longer priced below market value, but at market value. Movement in the market is so swift for REO's that the bank is now able to sell them within 7 - 14 days after listing. A new base has been set in some communities, which has been helpful in stabilizing the market.

The big question is interest rates., Yes, rates have gone up, but for how long. Will we see another a retreat anytime soon? I hope so, I don't have a Crystal ball. What I do know is that the higher interest rates go the, less affordable owning a house becomes. Subsequently, prices may have to continue to be reduced in order to stay affordable. Historically, however, rates are still very low and overall home ownership is still possible for some people.

QUICK SIDEBAR: FHA loans do work for some sellers. Don't be afraid to use this tool, which assists buyers and sellers, and of course, Realtors. Sure the seller has to contribute to closing costs, but FHA loans are a nice vehicle for driving the deal to closing. I hate to say it, but Seller if you find yourself in this situation, negotiate with the buyers Realtor to help pay the closing costs. It's can be a win, win , win for all parties involved.

Well, thanks for reading my blog. Feel free to call me anytime to discuss more about the South Florida Real Estate Market and how you can take advantage of the recent down market.

Remember, we're with you every step of the way, thanks again, and have a great day!