The Future of Florida Real Estate.
January 30th, 2017 at 10:21 am by Noah Curcio
U.S. home sales in 2016 was“the best in a decade.” said Lawrence Yun Chief Economist for the National Association of Realtors (NAR). Yun Spoke last Thursday at the Mid-Winter Business Meetings held by the Florida Realtors.
Dr. Elliot Eisenberg, a nationally known economist who also spoke at the meeting noted that “The South is the right division to be in – the economic recovery here has been much more robust. Florida is doing fine economically, unemployment is OK, and foreclosures are diminishing.”
They both agreed that mortgage rates will continue to slowly rise this year and the markets will be fine as long as jobs are being created.
Other things that are affecting the market include Low Inventory, Institutional investing changing the rental market and potential sellers with low mortgage rates, holding on to their property because the increasing mortgage rate and the perception of loss of buying power.
Brad O’Connor, Chief Economist for Florida Realtors mentioned that a shortage of housing inventory in markets across the state, particularly for properties values at $200,000 or less, is impacting closed sales and putting pressure on median prices.
That tells me that market is being squeezed. The demand for homes under $200,000 is high as they are in the affordability zone for most new buyers. Look at it this way. If a new home buyer takes out a $200,000 Mortgage with 5% down ($10,000),at Today’s rate they would pay $963 a month not including Taxes and Insurance. That is less than rent on a house in a neighborhood of sub $130,000 homes.
The future of Florida’s Real estate market is looking good.