Although there has been an outburst of activity in real estate bulk buying, the South Florida housing market is still suffering. The Mortgage Bankers Association reported that new mortgage applications and home construction are declining.
Last Wednesday, the association’s report stated that the index of applications went down 2 percent, as mortgage applications hit a 12-year low. However, many analysts think that the new federal tax credit extension will rouse up enough activity to help the market begin to stabilize.
The 2 percent decline in new housing applications is mild compared to that of the housing starts industry. Builders are going through some tough times as new home starts fell almost 11 percent in October, adding up to 529,000 for the year. Unfortunately, the Commerce Department stated that the low numbers of building permits paints a bleak picture for the near future as well.
In Florida, though, realtors reported that sales of existing single family homes went up by 33 percent. The low home prices have undoubtedly been attracting buyers from all over the state, nation, and the globe. With some of the most affordable condos in the country, Central and South Florida are enjoying a buying frenzy of late, despite the fact that the discounts have incrementally hurt home values. The majority of bulk transactions in South Florida have also contributed to the negative shift in home values.
To find the best deals in South Florida, contact Roman Pavlik. Roman is a seasoned real estate professional with extensive experience in the South Florida market. Email him at Roman@PavlikGroup.com or browse SouthFloridaRealtySource.com.