U.S. Real Estate Market - Commercial & Residential Market Essay

U.S. Real Estate Market - Commercial & Residential Market - Essay Example The Florida real estate market may be turning for the better. According to MLS.com, as of November 2009, the median sales price $145,800 was an increase of .09% from the previous month and an overall increase of 8.0% from the previous 6 months. Although this news sounds refreshing, the real estate market is still down 6.5% for the year. The best and worst performing zip codes measures which zip codes in Florida have had either the best or worst previous month based on their median home sales prices. The best zip codes for November 2009 were 33805, 34601, 33547, 34652, and 32720 while the worst were 33916, 33705, 32819, 33607, and 33830. (MLS.com) In 2008 the Florida population demographics consisted of 18,328,340 people with a median income of $47,804. Of this population, 12.1% live below the poverty rate. According to Florida State University Leroy Collins Institute, Florida had 82.5 million visitors in 2008 which is slightly down from 84.5 million in 2007 and 83.9 million in 2006. Of its 20 post-secondary schools, Florida universities had a total enrollment of 298,866 people enrolled. Now is the time to buy. Real estate prices are at an all time low with numerous foreclosures in every state. Foreclosures in certain cities are selling for as low as 20 cent on the dollar. In order to calculate potential profit yield, it is necessary to know what’s the market value for an arms-length transactions in that specific market area. This can be determined by having an appraisal done. It is best to have a real estate appraisal performed prior to the purchase of any property whether it is a foreclosure or an arms-length transaction. By having an appraisal performed prior to the purchase, an investor or potential home owner can ensure that the purchase price is similar to that which houses are selling for in the condition and under the terms of the purchase. Once an investor/potential home owner knows what the distressed