The real estate experts predicts that in the year 2007, the deflated housing market of Florida will be coming back to a state of normalcy after The Hurricane seasons of 2004 and 2005.
The Hurricane seasons of 2004 and 2005 have become an event of the past. With this, the real estate experts predicts that in the year 2007, the deflated housing market of Florida will be coming back to a state of normalcy.
"It's still kind of a standoff between sellers and buyers," Lee, broker, Resort Realty said. "The sellers aren't willing to lower their prices and the buyers are not willing to pay the price the sellers have. When sellers do lower their prices, there's definitely going to be a market out there."
"Although existing home sales will be marginally reduced due to sub prime lending restrictions, they should be gradually rising this year and next," says David Lereah, chief economist, National Association of Realtors (NAR), to Gulf Breez.
There is a visible decrease in housing prices in many regions of the country and this indirectly plays a role in Florida's real estate scenario. This could be considered as one main reason for the present weakness in the real estate market of Florida. Also, the rise in the price of gasoline and energy plays an indirect role in affecting the household budgets whereas the wages are just increasing with the price inflation of 3.6% a year.
Increasing property taxes and hurricanes are other reasons which resulted in the softening of buyer's interest on the real estate properties of Florida. The steady increase in the Florida housing loans is another reason for the reduction in the housing sales in Florida. This keeps buyers away from choosing Florida for real estate properties. A survey by Freddie Mac revealed that the average rate for a 30 year fixed mortgage was 6.80 in 2006, June.
A research analyst at RNCOS says, a housing bubble that has appeared in the Florida housing market will cast a reverse impact on the existing and future homeowners. For homeowners in Florida for whom their home is their primary investment, an unexpected and radical fall in the value of their home may put them in financial crunch. On the contrary, declining prices and demand of housing will turn Florida into a buyer's market, benefiting future homeowners.
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