Is the Florida Real Estate Market Over?

On Saturday, September 30, 2007, The Wall Street Journal carried a blaring headline that read:

Is Florida Over?

The article was directed towards the Florida real estate market and addressed the idea that the market in the Sunshine State has gone bust. Before the question of whether Florida is over can be answered, a person really does need to understand the realities of the Florida real estate market over the course of the past year.

First of all, over the course of the past year, more people have moved out of Florida than into the Sunshine State. However, despite the fact that more people are heading out of Florida than in, there is not anything like Florida flight occurring at this point in time.

Second, there have been a record number of home foreclosures in Florida in recent times. However, while there has been a significant increase in the number of foreclosures being filed across Florida, Florida is not the leading state when it comes to these types of mortgage problems.

Finally, homeowners insurance rates in Florida have skyrocketed in many parts of the state over the course of the past several years. This is due in part to the natural disasters that have plagued Florida for the past fifteen years.

Although The Wall Street Journal article referenced a moment ago does paint a pretty grim picture for the future of Florida real estate, the fact is many experts believe that there is definite light at the end of the tunnel.

The fact that Florida property prices are dropping at the present time does create a buyer's market. While this is not a positive development for sellers, investors and individuals interested in moving up in the residential market should consider taking advantage of the recent market trends.

Sellers can take heart in some developments in Florida as well that will impact the real estate market. First of all, the Governor is leading an effort to bring down property tax rates in the state to provide some relief to homeowners. (This should also positively impact the ability of a person to obtain a better sales price on a property should they decide to sell.)

In addition, the Governor and other governmental leaders in Florida are working to develop a meaningful program of providing homeowners insurance relief. Once again, this is also expected to benefit homeowners on many levels including making real estate more salable in the more immediate future.

The fact is that there are a number of factors pertaining to the marketplace that likely will stabilize the residential, retail and commercial markets across the Sunshine State in the not too distant future. In other words, for buyers and sellers alike, being involved in the Florida real estate market will again be a positive experience.