Make no mistake – it is a seller’s market in Florida today. It’s as good a time as any to sell real estate in Florida fast. But think twice, thrice, or maybe four times before looking to purchase Florida properties for sale under current market conditions.
Buyers are simply spending more than they should to get the Florida home of their dreams. Home prices in Florida are rising fast, but we don’t really expect this to continue for too long. If you could just wait a while before buying, then you would be much better off in the long run.
So why wait to buy property in Florida USA online? Why not buy now? Well, you should wait for the simple reason that you will only lose money when you buy high and sell low. You should generally avoid buying real estate in a seller’s market, especially one that is as volatile as the housing market in Florida.
The Great Recession of 2008 saw home values in Florida drop by 60% on an average. South Florida was the worst hit. So, had you bought a home in South Florida for $500,000 in 2006, in 2009, your home would have been worth just $200,000! That was the scale of the fall experienced by the property market in the state.
Florida became the state with the most number of foreclosures in the US during the worst years of the recession. Most people who were unable to pay their mortgages, simply moved out of their Florida homes and abandoning them for banks to take over.
Currently, Florida housing market is back in the news. It’s leading the USA in home appreciation this year. But despite the massive increase in property prices in Florida, the average home values are still 31% lower than what they were in 2006. Many homeowners owe banks more than what they are worth.
What this means is that a lot of people cannot sell their homes as yet. They will need to pay off their loans before closing the sale. It’s a bit like paying someone to buy your home!
Generally, it’s never a bad thing to buy in a seller’s market in the USA, as the prices are on the upswing and what’s high now becomes the new normal a few years later.
But not so in Florida, which has traditionally been the most turbulent housing market in the country. Did you know that as many as 10 million homes were foreclosed in Florida since 2008? That’s a staggering number and indicates the volatility of Florida real estate.
So don’t rush into buying a home in Florida out of fear the property prices will be much higher 5 years from now. In many places in Florida, home prices are yet to reach the 2006 peak prices, despite the fact that interest rates have never been lower in the United States. This is not a good sign at all.
But if you are a seller, this is perhaps an opportune time for you to sell at a high and get out before the market takes a turn for the worse. But it’s a decision that only you can make.