Current Florida Real Estate Issues
The US housing market is up and down. It’s good for some people; bad for others. Looking at the fact that there are properties on the market which have lost around 50% of their value, this should make it a great time to buy a home. But that’s just the theory. It seems the reality is somewhat different.
Other Economic Factors
While it’s true that house prices in distressed areas are selling at pretty much an all-time low, if one has no money, there is no money no matter how cheap they are! In other words, with high unemployment, it doesn’t matter how low property prices are plummeting, there is no capital with which to make a purchase.
On average, a 30-year mortgage has now dropped to less than 4 percent. But with people worried about whether or not they are going to remain in gainful employment and thus banks becoming less willing to lend money to these individuals, it becomes way harder to purchase property. Potential buyers now have to really be put through the ringer as they are requested to produce comprehensive tax returns and income verification.
Where Florida Fits In
Unfortunately Florida is pretty typical of what is going on now vis-à-vis the challenging real estate market. People simply cannot buy homes with no jobs or if they sense severe job insecurity. The four largest cities in Florida are at this point this right now. Thus it seems there is quite a way to go before the Florida housing downturn encounters a real recovery. Potential buyers – or those who should be potential buyers – are sticking to what they know and not taking any risk. They want to make sure they have a steady income before thinking about taking out a huge loan for a house that could ultimately result in a foreclosure.