A few weeks ago, we saw that the amount of buying in the Florida real estate market had increased in a 12-month period. This included more standard, non-foreclosed properties being bought up in places like Sarasota and Venice, although the average home price had gone down since December. Additionally, we saw several factors last week indicating why now is the most ideal time to buy a home. Some of these included the tax credits that will expire April 30, lower prices that probably won’t get any lower, and mortgage interest rates that will be increasing by the end of 2010. Combining these two aspects, where else has home buying been on an increase?

New York state, as reported by The Daily Star in Oneonta, has been seeing increases in parts and, locally, the area around Oneonta is considered a buyer’s market. Around the area, many “for sale” signs are visible and many are taking advantage of the tax credit that, although expiring at the end of April, will officially no longer be in effect for eligible buyers June 30. The realtors quoted call the area a “soft buyer’s market,” particularly because of the friendly conditions right now, but how accurate is this?

Markets vary on a state-by-state basis. Detroit, for example, which has a 20-percent unemployment rate hasn’t seen home buying increase, although the average price on a home has decreased 80-percent in a 12-month period. In New York, on the other hand, the realtors predict that the market will need to see some activity before prices increase. As both New York and Florida are seeing some activity, this might be an indication that prices will increase slowly and proportionally.

According to an article in CNN Money, now is the best time to buy a home, especially considering the home prices and tax credits about to expire on April 30. Think there’s enough time to buy a new home before then? Here are some of the points touched on in the article:

• The real estate market probably won’t turn around. In most areas, home prices have hit a plateau and aren’t getting any lower. Before they increase like its 2005, now would be the best time to take advantage of “historically low” prices on new homes and foreclosures. In areas in which home prices may dip lower, however, now may not be the best time.
• The current tax credits for new home buyers – including first-time home buyers – will end April 30, 2010. This credit, as explained in the article, is a 10-percent dollar-for-dollar reduction applied to your taxes, with amounts up to $6,500 and $8,000 for first-time buyers. This doesn’t apply to those who make over $125,000 and families who make over $225,000. Additionally, the article predicts that it takes, on average, 12 weeks to choose a home and, with fewer than that amount left, you may miss the deadline.
• The end of the year is expected to see a jump in mortgage rates. This will be from 5.18 percent to 6.1 percent, which is about an extra $175 per month on a home with a mortgage of $300,000. Those who purchase their homes now and not in six months will have the lower fixed interest rates.
• Getting stuck with a double mortgage. Although you may find a new home and want to purchase it, what if you can’t sell your home? Selling your home is done best in such a market as we have now, and when the interest rates go up and the tax credit disappears, buyers may not be as eager to pick up your home, even if you’ve already found a new one.

When you look at a description for a home or condo in the newspaper, do you know what you’re getting? In most cases, two sets of adjectives are used: a simply descriptive version with words like “gorgeous,” “beautiful,” and “spacious” used and an architectural version. In some cases, particularly for homes built around the turn of the 20th century, Victorian, Edwardian, and other period terms are used interchangeably. One article published in the San Francisco Chronicle mentions that these period terms are just about as accurate as the descriptive ones. So, how do you know what you’re getting is an actual Victorian-styled home?

One key point mentioned by the article is that research needs to be done. The buyer, instead of relying on the agent, should find out what constitutes Victorian architecture, what’s Edwardian, and what’s the difference between those two and plenty of other terms used by agents. Although sometimes the picture accompanying the ad in the paper or online will indicate the architecture used for the exterior, the interior is nearly as important. This is where your research comes in: Ask to see the house with the agent and see if it meets the description of it in the paper.

If you’re looking for a house with these various period architectural characteristics added, what do they all mean? In a nutshell, a Victorian home is one typically built during the reign of Queen Victoria, which is up to the first few years of the 20th Century. This often includes double parlors, high ceilings, various embellishments, and bay windows inside. Edwardian properties, on the other hand, were built the same time as Craftsman and usually have a cottage feel to them. Essentially, if you’re unsure of an architectural term in a home description, a simple search should give you basic information about what to expect for design.

Some trends we’ve seen nationally have been a plateau on sales for homes and lowered property values, although such incentives, like the first time home buyers’ tax credit, were designed to stimulate the economy. Nevertheless, the overall picture isn’t one entirely of desperation: The real estate market in 2010 is somewhat stable, as we saw in previous critiques, and is still in a recovery stage. Since 2007, the market went down due to foreclosures and went back up slightly in 2010, although the average home price is significantly lower than four years ago and fewer new construction projects are being started.

Florida, however, seems to be bucking this trend. Although for a few months, we detailed the going-ons in the Destin and panhandle area, the increase in real estate isn’t exclusive to this part of the state. While Venice and Sarasota are highlighted in the article, Florida has seen, overall, increases in home sales since 2009. In fact, this has been a 58-percent increase in a 12 month period. This doesn’t include foreclosed homes and short sales, but, instead, normal, non-distressed properties. The prices on these properties, on the other hand, have dropped since the end of 2009, although the increase is slight over a 12-month period.

Could this be a sign that the real estate market may be recovering? Overall, probably not, as we’ve seen various real estate writers mention that the market will plateau slightly in this recovery period. This means that, while Florida has been seeing an increase in home sales, areas of the Midwest, particularly Michigan with low unemployment rates, will see lowered home sales and housing prices. All of this averages out to a market that shouldn’t see many distinct changes since 2009, as we’re still considered to be in a recovery period for the real estate market.

Think the real estate bust is officially over? It may be, unless you’re a property owner. During the period from 2007 to 2009, at the height of foreclosures, hearing that building owners were evicting tenants was somewhat common, especially if the building was short on residents. This concern continues, however, but isn’t directly correlated with foreclosures in the present. Instead, the recession with unemployment has used fewer people to look for places to rent and, as a result, property owners are seeing lower occupancy rates. More empty units in an apartment building, for example, mean that the owner may not be able to pay the mortgage and make all repairs.

As mentioned in the article under the link above, a commercial property summit has been held in Memphis in regards to this concern. While the conference serves as a gathering place for property owners to discuss current market trends, it also serves as a place for those in the industry to give tips to each other. Building owners across the country feel this concern, especially as those tenants who lose their jobs may move out and not renew a lease and, with still high unemployment rates, fewer are looking to rent an apartment.

But, while the newly unemployed and recent college graduates may go off to live with their parents instead of looking for an apartment, an increase of jobs will allow this aspect of the real estate market to rebound. Like home prices, values on commercial real estate also lost 35 to 50 percent of the value and, to keep tenants, property owners needed to lower monthly costs. Nevertheless, while such a conference can give some survival tips to those in the industry, those owning property will simply need to wait for the employment rate to increase and recover.