Concerns about Florida Real Estate Q&A~.

This was recently emailed to me from one of our clients. As real estate investors start to see subtle changes in the condition of the real estate market, our subcribers continue to look for answers.
Q: As a real estate investor, I am concerned with the current rising interest rate environment and properties for sale and lease remaining on the market longer. Should I consider holding off on making additional real estate investments until the market shows some signs of rebounding?A: It sounds like your question assumes that Florida real estate values are going to go down, and what I really think you are asking is should you buy at current price levels or wait for a bottoming out?
From current market conditions, it appears to me that Florida real estate is fairly valued, not overvalued. With the expectation of continued strong baby boomers in migration and with the resulting creation of local jobs, I do not foresee any dramatic declines in Florida real estate values. This would tell me that hoping to buy at a lower price point may not occur. However, it's very realistic to expect a sideways moving market with little or no appreciation until the balance of our local economy catches up with the full value of real estate.There are advantages when investing in real estate in a sideways market:
1. Many of the novice investors who bid up the price of real estate are no longer competing with your offer to purchase. In past slowdowns, I have noticed that the sophisticated investor understands this concept, while the naive investor retreats.2. People who have financially overextended themselves during the bull-run phase of the market become attractive sellers for the sophisticated investor. An example of this could be an investor who has put a line of credit on their home to purchase lots or raw land. Since most lines of credit tend to be adjustable rate mortgages, the investor finds it more difficult to service the debt on the land in a rising interest rate environment.3. You must remember that real estate is a long-term investment and trying to time the market can be very difficult for even sophisticated investors.
So in summary, it's more important to acquire real estate investments with sound fundamentals well positioned for future growth instead of trying to time the market in an effort to buy low and to sell high.