Florida Housing Market For Home Buyers And Investors
This BLOG On Florida Housing Market For Home Buyers And Investors Was UPDATED And PUBLISHED On February 16th, 2020
The housing market in Florida has been hot since the late 1990s until 2008.
- Then the Florida Housing Market crashed and crashed hard
- However, the Housing Market has been recovering strongly year after year with no sign of a correction
- With new mortgage regulations implements on government and conventional loans, the demand for Housing Market is expected to be stronger than ever in the year 2019 throughout the state of Florida
- Due to high home prices, both the FHFA and HUD has increased loan limits
In this article, we will discuss and cover the Housing Market For Home Buyers And Investors in Florida.
HUD And FHFA Increases Loan Limits Due To Rising Home Prices
The Federal Housing Finance Agency (FHFA) has increased conforming loan limits on conventional loans to $453,100 effective January 1st, 2018. HUD has increased FHA Loan Limits for 2018 to $294,515 also effective January 1st, 2018.
- Housing was in demand and housing prices were increasing double digits year after year
- It was like how the stock market is today
- A large percentage of homeowners had second and investment homes and there were many Floridians who turned part-time real estate investor where they purchased and sold homes
- Most of them made great money
Fall Of Florida Housing Market
The Florida Housing Market was at an all-time high back in 2008.
- There were building homes on almost every block in all parts of Florida
- Then comes 2008
- The housing market crashes and when it crashes, it crashes hard!!!
- Thousands faced foreclosures and thousands lost most of the equity on their homes
- A large percentage of homeowners were sitting on homes with mortgage balances that were higher than the value of their homes
- Then, the housing sales start picking up
- When it does, it surges like today’s Dow Jones Average
No correction and no sight of a correction.
Hot Housing Market Versus Home Prices
Homes are selling above list prices.
- There are multiple offers on the same property
- Many homes are selling the same day
- My borrowers were asking me for multiple pre-approvals due to the fact that the offer they placed, they lost to a higher bidder
- Never seen anything like this before in my 20 plus years as a real estate investor
- Then when mortgage rates spike more than 1.0% in mid-2018, the housing market has somewhat tapered off and seems like it has stabilized
- Has it?
General Overview Of The Housing Markets
There were areas in Florida such as Orange County where housing prices were appreciating at a rate of almost 2% a month in early 2018.
- This appreciation rate has continued until mid-2018 when mortgage rates jumped 1.0% in a period of a few weeks
- Housing prices have slowed since then and competition is less rampant like it was before
- The Orlando area was one of the first areas where the Florida housing market has recovered
Many international home buyers and investors first started buying in Orlando than other parts of Florida.
Hot And Booming Florida Economy
Southwest Florida is expecting growth in its population from 2% to 4% which means demand for housing and appreciation of housing values due to demand.
- Florida’s Panhandle has been behind in housing value increases
- But it is expected to steadily continue to appreciate due to lower real estate values than the rest of the state
- One of the major reasons for the slowness of housing appreciation is due to their lack of economic growth and jobs
- Florida’s Panhandle biggest economic industry is the tourism industry
Outlook Of Florida Housing Market: 2019 Prediction
Nobody has a crystal ball and nobody can predict the Florida housing market but the way it seems. It looks that the Florida Housing Market has stabilized and a housing bubble burst does not seem likely in the near future.
- Things look scary in early 2018 when the Florida housing market was on fire
- Seems like it was a wildfire that was totally out of control
- Thankfully, it has stabilized and home builders seem like they are building new homes but not like the pre-2008 hay days
The FHFA and HUD saw that housing values throughout the state of Florida have been sky rocketing and had to increase conforming and FHA Loan Limits.
Florida Home Buyers who want to take advantage of the growing Florida Housing Market and need to qualify with a national direct lender with no mortgage lender overlays on government and conventional loans, please contact us at Gustan Cho Associates at 262-716-8151 or email us at email@example.com. We have a big presence in the Florida Housing Market and are available 7 days a week, evenings, weekends, and holidays.