Owning a home in Florida continues to become the more affordable option relative to renting, but several obstacles prevent many from taking the plunge according to a recent Florida real estate article in the Wall Street Journal.
The inventory of unsold homes has declined sharply from one year ago in many markets including Florida. While Oppenheim Law agrees price declines and low mortgage rates have pushed affordability to its best level in the past decade, the prospect of falling prices, more Florida foreclosures, and economic uncertainty continue to hold back the demand of leery wanna-be homeowners.
What makes this a Florida real estate buyer’s market?
- Home values have declined
- Apartment renting is expected to escalate in price
- Mortgage rates are at the lowest in six months, hovering at 4 percent
- Inventory in markets such as Miami are down by almost half compared to last year
- Mortgage rates are expected to stay low, so there is no sense of urgency to buy now according to analysts
- The potential supply of homes is much bigger because banks have yet to process hundreds of thousands of potential foreclosures.