As a real estate professional, I have seen firsthand how the real estate market has evolved over the years. One of the most significant changes is the increased regulation and tighter lending practices that have been put in place since the recession of 2007/2008. These changes, coupled with other factors, have made it unlikely for a similar recession to happen again. In this blog, we will explore these factors and why the real estate market in Florida, and many other areas, is currently booming.
First and foremost, lending practices have tightened considerably since the recession. Prior to the recession, it was far too easy for individuals to obtain a mortgage, even if they could not afford it. This led to a surge in foreclosures and a decline in property values. Today, lending practices are much more stringent. Lenders require proof of income, higher credit scores, and a larger down payment to be approved for a mortgage. This ensures that only qualified buyers are able to purchase a home, reducing the likelihood of a housing bubble.
Another factor that has contributed to the current boom in the real estate market is the increase in the number of homeowners with equity. During the recession, many homeowners found themselves underwater on their mortgages, meaning they owed more than their homes were worth. This led to a surge in foreclosures and short sales. Today, home prices have rebounded, and the number of homeowners with equity has increased. This makes it less likely for individuals to default on their loans and contributes to the overall stability of the market.
Furthermore, the economy is currently in a much better position than it was in 2007/2008. Unemployment rates are still low, and the stock market has been performing better. This has led to increased confidence among consumers, who are more likely to invest in real estate. The interest rates are still reasonably low. Sure, they are higher than what we saw over the past couple of years. But, still affordable overall.
In Florida, specifically, the real estate market has been booming due to several factors. For one, the state’s population has been growing steadily, which has increased the demand for housing. Additionally, the influx of retirees has created a demand for luxury homes and condos. Finally, the state’s favorable tax policies have made it an attractive location for individuals and businesses looking to relocate.
As a real estate professional, I am here to help navigate the current market and assist buyers and sellers in making informed decisions. The current market conditions present opportunities for both buyers and sellers, but it’s important to work with a knowledgeable and experienced real estate professional to ensure a successful transaction.
In conclusion, the real estate market has come a long way since the recession of 2007/2008. Lending practices have tightened, the number of homeowners with equity has increased, and the economy is more stable. These factors, along with others, have contributed to the current boom in the real estate market, particularly in Florida. As a real estate professional, I am here to help clients make the most of the current market conditions and find the perfect property to fit their needs.