While we have already seen that it looks like 2012 is going to be a good year for the Florida housing market, figures coming in from last year are indicating that 2011 showed the state was recovering from its housing recession too. Indeed, looking at the figures it seems that compared to 2010, there was an 8 percent increase in Florida housing sales in 2011.
In addition, according to figures released from Florida Realtors, over the last few years, there has been a steady escalation in housing sales in Florida, since this latest increase marks the third time in three years that there has been growth.
However, looking at December 2011, it seems that there was a small plummet (of 2 percent) from figures for the year earlier. Again though, it was emphasized that recovery in Florida’s housing market will continue throughout this year.
Finally, after months of poor performance in America’s housing industry, it seems like 2012 is going to be the year of recovery, albeit gradual. In South Florida for example, home sales are increasing which is good because prices were really hitting a low. However, the mortgages people took out during the boom are still negatively impacting the market and this has been extremely challenging for many homeowners.
So, for those encountering difficulties in the housing market – be they homeowners, those looking to buy or potential sellers – there are some ways of improving the situation. First, since things have started to look up, for those looking to sell it is worth trying to do so earlier rather than later before foreclosures appear. No matter how desperate you are to sell though, do not try to provide cash/cars/other incentives to get them to buy. It is a bad idea.
In general, it looks like it is going to be a good year for sales; there are fewer declines in pricing as well as fewer properties on the market than in say 2009, 2010 and 2011. In addition, it is anticipated that there will be another wave of bank-owned homes which will result in lower values and additional competition for those looking to buy properties.
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.