Cash Advance

Archive for February, 2008

Timing is Everything in Florida

The real estate market in the sunshine state has been particularly cloudy over the past 18 months. The Florida market attracted a high number of speculators during the boom years up to 2005 and has suffered badly in the recent downturn. But there is hope for the market and there are positive signs that 2007 will see some growth and conditions are improving. Don’t expect a quick recovery but there will be gradual improvement as sellers lower their prices to attract buyers. There is demand for affordable housing and this is a very good time for buyers to consider their options.

The real estate downturns of the past 20 years have been caused by recession and job losses whereas the present downturn is characterized by affordability issues and investor speculation. A lot of people speculated on the Florida housing market and believed that they could make quick returns on their investment. This pushed the market to an unsustainable high. Property is still a sound investment if you are prepared to hold on to the property for a few years. Florida remains an attractive state for people to move into, the economy is strong especially the tourist sectors and jobs are being created. This is all good news for the housing market. There is over supply in the market but I expect this to balance out over the next 6-9 months.

Activity will pick up in spring 2007 as sellers become more realistic about prices and buyers begin to realise that homes are affordable and there are good deals to be had. Job security is good, interest rates are low and there is a big choice of decent homes so it is a great time to be a buyer. Sellers are also offering a range of incentives to encourage buyers to complete deals.

2007 will be a challenging time for the market but it has stabilized and conditions are favourable for buyers. It is expected mortgages to remain low this year but there will be a rise in refinance loans as people swap their fixed rate mortgages for ARMs and some people will begin to release the equity which has built up in their homes.

Timing is Everything in Florida / Lindsay Kaplan

Lindsay Kaplan is a licensed real estate agent and broker in many USA markets including Florida mortgage, home equity and debt consolidation. Read more Florida home loans articles at www.loansplanet.com.