Are Home Prices Falling In Central Florida?

Yes, home prices are falling in Central Florida. The Central Florida housing market predictions are coming true for many areas of Central Florida. However, the areas containing more interesting things and larger job market still strong demand remains.

Central Florida

A Real Estate & Housing market Crash In Central Florida?

Actually I do anticipate a decline in the home price in most areas. Some like Lakeland Florida, Auburndale FL etcetera will have a greater decline and it has already started. Not only are interest rates having an effect but many other hidden factors often pundits will not speak of.

Trickle Down Central Florida Housing Market Crash

What do I mean? As interest rates go up and people slow in their credit card usage they will travel less, get worse credit and default on those same credit cards. You will see a rise in Chapter 7 bankruptcies and vacation travel will also slow. The AirBnB housing market in Orlando is huge and billions of dollars worth of real estate is invested in and dependent on Walt Disney World and the theme parks having visitors. Many investment homes will start to hit the market if this trend continues.

Short Term Affects On The Central Florida Housing Market

New construction is getting cheaper in order to sell. This puts downward pressure on existing homes sales which is the largest percentage of the housing market. Housing market activity in Orlando and Tampa are still strong as well as in The Villages FL. Some seller's are selling now as apposed to later because of concerns for the future. More supply and waning demand lead to housing prices declining.

Supply And Demand Vs Distressed Properties

Real estate investors are constantly trying to smell blood in the water when it comes to the Florida housing market. One of the earliest signs is short sale applications, then bankruptcy filings and them foreclosure filings at the county court houses. In Florida we have judicial foreclosure and when there are many of them it can take years for a home to be seized and the owners evicted from a single family home. My first time purchasing a foreclosure was in the 1990's.

Mortgage Rates Vs New Mortgage Applications

Last week there were fewer mortgage applications than in the previous 20 years. Are we spoiled with 2-4% mortgage rates? Dis you know we are at historic norms for a 30 year rate? Actually we are very close to what is typically considered as average mortgage rates. The younger generation forgets that and typically they have less money to put as a downpayment as well. As housing prices drop and housing inventory increases how many will be able to take advantage?

Number Of Home Sales & Median Home Price Across Central Florida

Over 1000 single family homes sold in the previous week The median sales price was $380,490. Six months ago over 2,000 homes sold and the median sale price was over $372,000. Statistically the price change is insignificant. The volume of sales however is fairly significant from just half a year ago. This is not what I would call a balanced market and the amount of price deductions is on the rise.

Skyrocketing Mortgage Rates For Prospective Buyers?

I anticipate still rising mortgage rates despite housing inventory concerns. The Ten Year T-Bills Will possibly crack 10% meaning most likely interest rates will continue to rise for the real estate market. Maybe the stock market will crash and rates will return to zero. I doubt that, my housing market prediction is for slow growth of the interest rates and not to the fault of the Federal Reserve Bank but to government policies. Buckle up, buy as close to low as possible.