The Florida forecast for the Real Estate market offers future homeowners some golden opportunities. As we reported previously, “Orlando may be the “hottest Real Estate Market for Investors in 2019.” Now we are not viewing the market through rose-colored glasses. But we may be seeing a golden glow over 2019.
Happy New Year!
The Palm State Mortgage owners and staff would like to wish a very special Happy New Year to all of our friends, family, and clients.
And if you are house hunting or selling, take heart. We have found some golden predictions among the experts’ fore-castings for 2019.
Likewise, Palm State will be here to help you with all the details of the best mortgage lender for your fiscal situation. Our mission continues! We want to find affordable financing for your home in 2019. And at Palm State, we go the “extra mile” to make homeownership happen.
The truth is that the housing industry and the real estate market for all of Florida are very promising. And this is especially true of “the Tampa and Sarasota market.” So let’s look at some of the predictions for 2019 in the golden glow of our Florida sunshine.
Gord Collins’ in his Florida Housing Housing Forecast stated that the “Tampa and Sarasota housing market is “hot.” Collins also reported, “The housing market in Miami, Tampa, Orlando, Panama City, Sarasota, Naples, Fort Lauderdale, and even Boca Raton are compelling real estate investment value propositions for snowbirds and other buyers in North America.”
What is Special about Florida Real Estate?
Our answer to the question is the topic of our current report. You may remember, the national “gloom and doom” forecast of the national housing market.
However, Florida’s Real Estate optimism is in strong opposition to the national report. And there are three major reasons we look to 2019 housing with optimism.
1. Value of Florida Real Estate is Up
Nationally, the values of homes were already falling. The national prediction for 2019 was a one percentage point drop. And predictions were that this trend would continue.
Here in Florida, just the opposite is true. Our home values are still rising. The rate of increase is at a slightly slower rate. But the rate of increasing values is still up. And the predicted trend is the same-up. You know how we love facts and statistics here at Palm State, so let’s check on a few more golden predictions:
- A Golden Big Picture: Ralph B. McLaughlin is deputy chief economist and executive of research and insights for CoreLogic. In Wednesday’s new report, he said, “It’s important to look at the bigger picture. Slowing price appreciation is still appreciation. And the current rate is more than double that of inflation.
- Golden Sun and Sand: “Sarasota County has been on a tear” and “an unprecedented six-year run.” Robert Goldman is a Michael Saunders & Co. Realtor and an attorney. Goldman was referring to the area sales record. Likewise, Goldman forecast a continued stable and balanced housing market for the first three quarters of 2019 with inventory slowly growing and prices increasing in the 4 to 5 percent range.
What Does This Trend Mean to the Buyer/Seller
Erica Plemmons is an economist and director of housing statistics for Florida Realtors. She compared the 2018 market to 2017. The result of her study concluded the median sale price has continued its climb every month in 2018 versus the same month in 2017.”
In the Sarasota-Manatee market, the median home price ticked up 3.8 percent to $290,000 in the third quarter of this year.
Seeing the Gold in Home Ownership
The value of homes is constantly increasing. What does this mean?
To the owner, it obviously means his equity, as well as possible sales value, is increasing. When the time comes, he or she can sell his home at a higher price. Or should he or she need to refinance, more collateral is available to “cash out” or purchase another home.
To the buyer, it may mean an additional outlay of cash to purchase a home. But, it also means that in six months, his or her home is probably going to be worth more than when he or she purchased it.
That means a Win-Win for both purchaser and seller.
Here is a fascinating footnote related to increased equity and value of Florida homes: CoreLogic reported that “Over the past 12 months, 81,000 borrowers moved into positive equity.” Now that’s a golden opportunity.
2. Strong Market For Homes in 2019
Are there going to be buyers available in 2019? After all, the interest rate for a “30-year fixed mortgage rates is predicted to rise to an average of about 5.25 percent by next December, the highest in a decade.”
There are several indicators that the market is going to continue rising throughout 2019.
- A recent report showed that Florida’s population grew by more than 1,000 people per day. This explosion in population alone, suggests that the need for housing is not going to decrease. This may be, due to several factors including a growing job market, lack of personal taxes in Florida and its friendly climate.
- In its “Pre-Mover Housing Index,” ATTOM Data Solutions, curator of a national multi-sourced property database, indicated the Tampa Bay area ranked sixth in loan applications from those ready to relocate.”
- Robert Goldman’s Prediction: “Interest in buying Florida properties is persistent, and given the strength of the Florida economy and tax situation in the Sunshine State, and an aging population, we should see strong prices for many years.”
3. Will Rising Finance Rates Slow the Market?
There will probably be some initial reaction to the rising finance rates. However, most experts look on these rates as a return to normality. After all, until recent years, the increased rates that we see lurking ahead were the average rates that the home buyer expected.
However, many experts seem to believe that the demand for housing will out-weigh the fears of finance rates.
It seems like we are not the only ones looking to a Florida future through Gold-colored glasses. We are optimistic about 2019. The outlook for the mortgage industry, Real Estate Marketing, and home ownership appears as bright and sunny as our view of the New Year.
Again, from the Palm State Mortgage family to you and yours, we wish you wealth, good fortune, health and homeownership in 2019!