Are we there yet ?
Categories: Mortgage News, Real Estate News
hiEvery time I am pre-qualifying someone for a mortgage, I get asked the following question. “How do I feel about the future of Florida’s housing market?“ My answer is very simple. Have you seen the trailer for Journey to the Center of the Earth, when after a while that their floor broke in pieces, Brendan Fraser screams
“We are still falling !!! “
Yes indeed, this housing downturn will likely last longer than expected to rebound. Certainly, today’s economic scenario is unique and nothing from the past could 100% apply and rule out predictions for the future. We might well be experimenting the beginning of a world wide inflation or even worse stagnation. But lets go back to Florida.
This housing slump will last longer, at least in Florida, because of the high volume of foreclosures and the specific constraint in the credit markets for this particular area. So most likely, any buyer would ask himself: “Is this the right moment to buy or shall I wait a few more months for the prices to drop even further?”
As a Buyer, you might probably be nodding and scratching your head as you read this article, but beware to the actual figures of falling prices on an environment of tightening credit, and please read very carefully this Real Life scenario.
Please click here to download the Real Life Scenario.
After reading this scenario, you could conclude that even though prices are still failing, if credit guidelines tighten or interest rates increase, the bottom line result is that the your monthly payment cash flow will remain unchanged.
