Hot Markets of Florida

There’s upside to be found throughout the state of Florida, described by some as the “epicenter” of these market corrections:

A September report from Fishkind & Associates, one of Florida’s premier economic consulting firms, indicated that the state’s housing markets had stabilized. The Fed’s interest rate cuts in September helped kick-start an inventory reduction that will eventually restore market stability. The report further stated that in Orange County (Orlando area), existing home prices were actually on an upward trend.

Throughout Florida, both conventional and jumbo loans were readily available at highly competitive rates. According to Robert D. Ashby, a mortgage specialist in Pembroke Pines, rates had actually dropped on conventional loan packages. “There are many changes in the way we do mortgages … due to recent events,” said Ashby. “But keeping things in perspective shows that these changes will not bring the world to an end, (but) rather follow a cyclical pattern as it has in the past.”

In the Tampa area, the number of single-family listings continues to decrease and sales have subsequently stabilized. (continued) “Single-family home listings (have) gone down since March, which may indicate that overpriced homes are now removed from the market," said Ann Guiberson, president and CEO of the Pinellas Realtor Organization.

A study released in July by the University of Florida indicated that 95% of homeowners in the state believed that their home values would either increase or remain stable during the next five years. UF economists weren’t surprised. “The last time housing prices fell and didn’t recover within five years was during the Great Depression,” said Jonathan Hamilton, chairman of the university’s economics department.