Florida Real Estate housing market expected to evolve in 2014 – What about the mortgage rates?
As we step into 2014, we realize that 2013 has been a great year for the homebuyers and the homeowners in Florida’s real estate market, thanks to the record-low mortgage rates, strong growth in home prices, high mortgage affordability, steadily improving jobs market and the increasing home values. The Florida Realtors’ 2014 RealEstate and Economic Summit has reported signs of improvement in the Florida Naples housing market. The Florida Realtors Chief Economist John Tuccillo looks forward to 2014 as he thinks that this is the year of continued growth. The number of homes changing hands in 2014 still needs to grow by 10% even when things slow down a bit.
Will there be a rise in residential sales in 2014?
Even after a slower pace, Florida real estate housing sector is predicted to grow in 2014 and the experts suggest that there will be around 10% increase in residential sales, The values of homes will rise roughly about 5% in a year, a figure that is in line with the historical trends. In the last 18 months, the value of homes have increased by about 12%, a trend that isn’t expected in 2014. Economists at the summit agreed that 2013 would be a good year for the housing market of the state, that enjoyed low mortgage rates and improved job market. The median time on the market for a home in Florida is down to about a month and a half. Clearly, there is a substantial improvement in the realestate market, the amount of vacant housing oversupply is the least in the last 10 years.
Real estate housing market in Florida Naples has been so hot throughout 2013 that there was some talk of a bubble but no one gave those bubble fears any kind of credibility. Frank Nothaft, an economist for housing finance giant, Freddie Mac, said homes are still below their peaks in mid-2000s. For instance, a home that was sold off at $400,000 in 2006 plummeted to $200,000 during the housing creach. The local housing market in Florida is in flux. The investors helped move up the prices by 20% over year as they snapped up all the available homes that they could.
Soaring housing prices have assisted thousands of Floridians to stop being underwater on their mortgages or owing more on the mortgage than the worth of their homes. This is certainly real estate good news as it will let them list their homes for sale for the first time. However, the realestate housing process will gradually taper off when there are more homes in the market. However, the biggest challenge to the realestate market in Florida in 2014 is the lack of loans from the lenders. The mortgage rates might climb to 5% by the end of 2014. There were predictions that the mortgage rates will also remain historically low in Florida throughout 2014.
The lenders in the Florida real estate market are pretty confused about the coming changes due to the Dodd-Frank Wall Street Reform and Consumer Protection Act. There will be new rules on home lending, and they can even be restricting loans. Some 60% of Dodd-Frank’s regulations are procrastinated and therefore banks don’t know the amount of money that they’ll be able to lend to the customers and the amount that they’ll keep in their reserves.
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About the author:
Rikk Milleris a financial writer and a blogger. He has profound knowledge on the different financial issues that are plaguing the current economy and he also offers solutions to the readers through his articles. He contributes his valuable posts to different financial communites, blogs and websites. Some topics covered by him are the US debt and the impact on the economic growth, ways in which homeowners should prepay their mortgage loan the pros and cons of refinancing mortgage debt and many more.
