3 Key Factors To Understanding Why The Florida Housing Market Suffered In The Market Crash Of 2008
Florida, located in the southeastern part of the United States, is a state that many find to be such an amazing location for anyone to choose as it offers people with tropical climates which many consider to be most appealing, especially since the area is also home to many world-class beaches.
In fact, it has been known to have such a successful tourism sector with a record of about 86 million visitors in 2011 alone. So, how can the housing market of such a dynamic location end up so devastated? Here are three key factors:
Too Many Developments
Knowing that Florida receives so many visitors each year, investors from all around the world have found it to be a great location to develop, especially since its growing population indicates a high demand for more real estate options within the region. However, the developments had become way out of hand as it left a large surplus on the housing inventory which went beyond what was needed from the market, most especially with regards to condominium developments found within the Brickell district.
Poor Lending Practices
Anyone that has ever had to deal with applying for a loan will know how difficult it can be to acquire, especially if you are someone who is trying to make ends meet in these tough times. The fact that today’s lenders have been forced to resort to poor loan and lending practices has made it even harder for the Florida real estate market, especially since many of them were bring prices way beyond the actual value on properties being placed on the market and that has posed a problem as far as being able to avoid oversupply of inventory.
Unemployment Issues
One of the problems linked to the housing market is the fact that the unemployment problem has made it impossible for people to keep up with their financial obligations and that includes mortgages. In 2008, there had been approximately 606,000 people who were jobless out of a total labor force within the region of 9.32 million.
Needless to say, as people become unable to pay their mortgages, they become candidates for foreclosure which is already an existing problem for the region as it has too many foreclosure properties on the market today.
Nevertheless, the problem of unemployment seems to be gradually lifting off as more opportunities are being presented with the state of Florida which go alongside the fact that there are now more home sales being made across the region.
In fact, the problem that came about as a result of having far too many Florida real estate developments is looking to be the exact opposite now that the housing inventory is left with about five months of supply which signals the cue for development projects to step back in to create more options for the people who seek outstanding real estate within the area, especially now that market conditions are looking to be returning back to normal levels.
If you would like to learn more about the Florida real estate market, or if you would simply like to find out about the aforementioned key factors regarding the housing market, you should take the time to speak with a professional real estate agent that can address your concerns and provide you with details on what opportunities are available within Florida today.
Yaz Morgan
Florida Real Estate
