Florida mortgage loans are on the increase and being fueled by lower interest rates. Momentum could be attributed to improving economy conditions as well as declining housing inventory. A hurting economy driven by high unemployment and a lack of consumer confidence provided low numbers in sales earlier this year. Home and condominium sales are up and foreclosures are down throughout the Tampa, Orlando and Miami areas.
Homeownership
Florida home sales typically increase during the summer and then slow down in the fall. The sales in summer vacation months help average-out the slowdown during winter. 2011 has been different, a difficult time to say the least, for buyers, borrowers, lenders and real estate agents. Home sales are moving up again and consumer spending has increased, but only modestly. Foreign tourists in Florida are helping to boost impressive growth in some areas and home sales are looking good for 2012.
With the number of foreclosures still high, lenders are concerned about the risks associated with lending money today. They are being more hesitant to lend than in the past and require higher down payments and better credit score requirements. Home loan standards across the country for borrowers have been raised, making homeownership for many people a thing of the past.
Rental Housing Gains
Much of the current rental housing demand can be attributed to financially stressed short sales and foreclosures. A lot of rental property demand is coming from young and new households who have decided to rent in favor of buying a home. Despite low housing prices and record low interest rates, homeownership has fallen over the past few years. The trend of households renting, combined with the limited new supply of rental units, has pushed apartment vacancy rates lower and rents up.
Community Programs
Florida housing initiatives continue to increase affordable housing opportunities and ensure that programs assist the needs of those they serve. Local governments, non-profits, elected officials and others help to provide assistance services for low-income residences and individuals renting.
Economic development and down-payment assistance serve the economic and housing needs of communities by providing options for community development initiatives. Grants and subsidized advances help construct affordable housing and build job growth throughout Florida.
Buying Right
The one bright spot in Florida's real estate market is foreign investment. While international buyers made up just 3 percent of home purchases nationally in September, they made up a far higher share in Miami and Palm Beach. Financing doesn't seem to be a problem for many foreign buyers, who usually pay with cash.
The real estate market continues to improve and it does not seem to be slowing down as the end of the year draws near. Home prices are great and buyers are taking the opportunity to get in the market. When a property is priced right, it is moving fast. Most importantly, the inventory is continuing to decrease and distressed properties continue to be liquidated at bargain prices. It is a great time to purchase Florida real estate.
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