Florida Home Prices: Looking Back, Looking Forward
As reflected in the near-record national rise in home prices, Florida homeowners as a whole had much to cheer about in 2013. According to the S&P Case-Shiller Index, home prices increased 13.6% from October 2012—and in fact, they’ve been improving at a faster annual rate in each month for almost two years!
Every expert I researched agreed that this rate of increase won’t (and, for the health of the market, shouldn’t) continue at that gravity-defying pace in 2014. Most of them do predict higher interest rates with a slower (but steady) rise in home prices. Adding to the overall optimism is last week’s RealtyTrac report that showed foreclosure filings last year weighing in with the lowest annual number in 7 years. That’s that: the recovery has happened!
Some potential Florida homebuyers have been reluctant to enter the market at all due to memories of the last decade’s real estate bust. Their fears may be dissipated if Dow Jones Index Chief David Blitzer’s analysis is heeded. The economist has shown that the previous market price top was accompanied by a 60% loan-to-value ratio: a speculative bubble in home prices. Today, loan-to-value has shrunk to less than 50%: not even close to “bubble” territory.
Florida home prices might get a boost from another quarter, too, as prospective buyers realize how expensive their hesitation has become. According to website Trulia, the cost of home ownership was 35% cheaper than renting—at least in major cities. And even despite rising prices and interest rates, homeownership should continue to be more affordable than renting throughout 2014.
While lending criteria are expected to loosen in 2014, it’s likely that many first-time home buyers will continue to find it difficult enter the market. So existing homeowners should be even more important participants in 2014. Having enjoyed large gains in 2013 (and having already surmounted the down payment hurdle), this group is expected to dominate among homebuyers.
If you’re thinking of buying a Florida home, contact Bold Real Estate Group currently servicing the neighborhoods of Port St Lucie, Palm City, Stuart, Vero Beach, Palm Beach. Having the right Florida Realtor means having a Realtor who is committed to helping you sell your Florida home with the highest level of expertise in your local market. This commitment level has helped Bold Real Estate Group build a remarkable track record of delivering results.
About the Author: Millie Gil has been a successful Licensed Real Estate agent for over 25 years in Florida. Millie is Vice President of Bold Real Estate Group in Stuart. A boutique agency committed to concierge personalized service for discerning buyers, sellers and renters of residential and commercial properties. Millie is fluent in English and Spanish with a strong network of real estate professionals worldwide. Other post by Millie Gil
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