Shopping for a home during the fall months may be ideal for Florida residents. It may represent a period in which there are fewer people looking for homes, and this may result in fewer offers being made on those properties. When there aren't multiple offers on a property, it reduces the odds of getting into a bidding war, which may allow a person to get a home at a fair price.
As property values increase, Florida residents may be willing to get creative when it comes to financing a home purchase. According to Inside Mortgage Finance, there was a 40 percent increase in adjustable rate mortgages between the first and second quarters of 2017. While they offer lower rates and a rate that is fixed for five years, they may be riskier in the long-term compared to the traditional 30-year fixed mortgage.
When a Florida resident is ready to start the home hunting process, it may be worthwhile to get a letter of pre-qualification. This is a letter from a lender saying how much an individual would qualify for based on income and other information provided to that lender. This is not the same as a letter of pre-approval, which is an estimate based on information provided on tax returns and other documents.
The real estate in Florida has enticed people to the warm climate for years. However, buyer demand continues to outstrip the supply of homes for sale. A nationwide housing market analysis by CoreLogic shows that prices are rising because of the tight inventory. According to the National Association of Realtors, home prices were 6.7 percent higher compared to last summer while the number of property listings retreated by 9 percent. The association's chief economist said that housing starts were weak and that investors were showing little desire to sell.
While the housing market has enjoyed gradual increases in property values, buying throughout Florida and the rest of the nation are suffering from a dwindling supply of options. In late August, the National Association of Realtors published its closely watched pending home sales index, which has posted lower numbers on four occasions over the last five months. On a year-over-year basis, pending home sales have decreased by 1.3 percent while the index has lost 0.8 percent in July.
Florida residents who are older and who are thinking about purchasing homes might want to think about several factors before they decide to proceed. Senior citizens who are nearing the age of retirement may have more things to think about than younger adults who are considering buying a home.
Florida residents who are looking for a new home may not be surprised to hear that there are relatively few available properties on the market. Although homes were selling at a near record pace, existing home sales around the country dropped by 1.8 percent overall in June because of the low supply. Only the Midwest region was able to buck the trend and see an increase in sales during that month.
According to the National Association of Realtors, investors from other countries are purchasing residential real estate in the United States in record numbers, with half of the foreign sales being made in California, Florida and Texas. Foreigners purchased residential properties totaling $153 billion from April 2016 to March 2017. That is a 49 percent increase from the same period one year earlier and exceeds the previous record that was set in 2015.
After a homeowner misses a few months of mortgage payments, the lender will likely issue a foreclosure notice. Although the problem might seem overwhelming, options for preventing foreclosure and the subsequent drop in credit rating exist. A distressed homeowner should contact the lender as soon as possible and ask for more time to catch up on payments. In some cases, lenders restructure loans to allow people a chance to keep paying and halt the foreclosure. Selling the home also presents a viable solution in many cases.
New home buyers in Palm Beach County often second-guess their choice to buy and the reasoning behind it. Some are looking for a way to get into the market and start saving equity that will later be used to purchase a larger family home. Other buyers think they are ready now to get into a home that they will keep for decades to come. There are some justifications for each approach, and they can help new buyers determine their strategy in the residential real estate market.