Trends In Florida Home Buying

Category: Finance, Real Estate.

It s hard to miss all of the recent media coverage regarding the US housing market.

According to the latest numbers, these predictions are proving to be accurate. Analysts have predicted a cooling off period after nearly five years of soaring prices, and a housing, bidding wars market that became a seller s playground. At present, the number of unsold homes throughout the US has risen to a record high. The Florida real estate market has not been immune to these changes. Mortgage rates are currently at an average of 6% for a 30- year fixed loan, the highest rates in nearly four years, and the average sale price of a home has dropped to$ 238, 000 nation wide. Like most other areas of the country, a flood of homes on the market in Florida and dropping sale prices have created a different kind of market.

Taking Advantage of a Buyer s Market. While this current cooling trend may be worrisome those with a house currently on the market, it is great news for the Florida home buyer. For the Florida home buyer, the real estate market of the past five years has been a roller coaster ride of indecision and worry over sharply rising housing costs. Time to shop for the perfect home was extremely limited, while sellers were reaping record profits in the boom market. Buyers were forced to make immediate offers on prospective homes, often ending up engaged in a bidding war with other buyers. Today things have changed a bit in the Florida housing market. With the flood of existing homes on the market and new home builders looking to incentive programs and price reductions as means of attracting new buyers, there has rarely been a better time for the Florida Home Buyer.

Homes are sitting on the market for a much longer period of time, leaving sellers with the opportunity to comparison shop and find the home that is truly right for them. Creative Financing for the Florida Home Buyer. Unlike the 1980 s, sellers are not offering financing of this type to counteract sky- high interest rates, now the purpose of seller financing is to shield sellers from capital gains taxes in an era of record home sale profits. Seller financing, which saw the greatest level of popularity during the 1980 s, is a returning trend in today s housing market. Despite a cooling market, sellers are still gaining huge returns on their initial investment once they sell their home, and offering to carry all or part of the financing is a way to spread out gains and avoid hefty tax rates. Trends in Florida Home Buying. This finance option is beneficial to buyers because sellers will often finance at slightly lower interest rates, and buyers do not have to worry about costly appraisals, and mortgage points, application fees.

Purchase of existing homes with intent to remodel remains a popular option for Florida home buyers. According to the latest predictions from the National Weather Service, the 2006 Atlantic hurricane season is expected to bring up to sixteen named storms, and as many as six major hurricanes. Newly constructed home sales also remain robust, especially high quality custom homes that are built above hurricane code. These numbers are slightly lower than the 2004- 05 seasons that brought devastating storms such as Katrina, the fact remains, Rita and Dennis that even if only one major hurricane impacts the US coastline, it is a bad season for the residents of that area. And in the current market conditions, these homes are more affordable than ever. This is why homes built of solid concrete with additional roof truss straps and impact resistant windows remain so popular with Florida home buyers. Many custom Florida home builders are presently offering reduced sale prices and additional amenities, features and incentives to attract new buyers in a cooling market.

Good News for Florida Home Sellers. Depending on the time of year and amount of homes a builder must sell, it is possible for the Florida home buyer to find fantastic deals on these high quality homes. The outlook for Floridians looking to sell their homes is not all bad. It may take longer to sell a home, but there are still buyers out there who are eager to invest in the Florida real estate market. Sellers are still reaping record profits from their homes, and home sales were actually up in the month of April. Florida realtors are also beginning to tap a robust international market. New marketing strategies include international conferences where Florida realtors can present their listings and investment opportunities to these buyers.

Buyers in Europe, South America and, Asia other countries are eager to invest in industrial, commercial and residential properties throughout Florida.