It seems like Florida state housing is on the upswing. According to bankers in the sunshine state, this important upward swing could result in loan growth too and assist lending issues that escalated following the collapse of the Florida state housing bubble burst. What has happened until now is thousands of foreclosures, due to the slump. But currently that is changing as finally house prices are escalating with inventories diminishing across the region.
Indeed, according to President and CEO of Winter Haven, John Corbett, the Florida state housing market has “now become a tailwind for banks. The real estate market is accelerating,” he pointed out. He added that the inventory of Miami condos plummeted from 18 months of supply to next-to-nothing as out-of-town investors started purchasing properties.
It is not just Corbett who is optimistic about the Florida state housing market. Chairman, President and CEO of Capital City Bank William Smith Jr. said, “Florida is on the move again.” He pointed out how there has been a lot of land that has been selling and homes are spending less time on the market these days.
A similar experience has been encountered in Destin, Florida. According to John Allison, Chairman of Home BancShares Inc., during the credit crisis significant stress was encountered in Panhandle, but now it is seen as a boom town, witnessing many more buyers. He has found that any property on the water or those that are income-producing are now sellable. However, residential areas situated more than five miles from the coastal area are struggling to find buyers. These properties in the Florida state housing field still have a long way to go to catch up.