How many of us have heard that question from our children during a well planned vacation that included one day of travel time in the car?  I used to wonder why my daughter would ask that question when she could clearly see that we were still moving  in the car with no intention of stopping.

A lot of us (adults) continue to ask that question about the real estate market.  I think the first response is “Are we where?”  Just where do we think we should be right now?  A number of homeowners will respond by saying they want to be back in the 2004 real estate market.  That isn’t going to happen and we should begin to think ahead and plan for the future.  The past is gone and if we look at history, the future can be even better!

Many things are looking good.  Mortgage affordability conditions for most buyers have improved.  Mortgage rates have actually been falling for borrowers who take out conforming loans and FHA loans have also begun to build market interest and momentum.  There have also been four million net job additions in the past two years.

The simple law of supply (lower) and demand (higher) will come into play when the inventory of homes equates to a 5-6 month supply.  Prices will firm up and the media will then be forced to report on the price gains.  Many of the potential buyers will get back into the market which will reduce the supply.

Who is currently waiting to purchase a home they can afford?  People who have been renting at high prices are anxious to buy a home.  Two million marriages occur in the U.S. each year.  These newlyweds are waiting to purchase a home.  About four million babies are born annually, forcing some families to consider trading up from a smaller house or condo.  The number of single women looking for a home to purchase increases every year.

The current high level of inventory will eventually be reduced as builders cut back production.  Some home owners of vacant homes will also consider the increased rent growth and take their empty home off the market.  Unleashing of the pent-up-demand for home buying will eat into the inventory.

If you are asking “Are We There Yet?” the answer is:  Properties are selling today and it continues to be a GOOD TIME TO BUY.   Because we are in a terrific marketplace, our market will continue on the upward swing.  Can’t we always say that being in South Florida is “BEING THERE - NO MATTER WHERE WE ARE”?

By Martha Bullman, CEO, Realtor® Association of Miami-Dade County