Some fear that the current tight credit standards will chill the market, but others say we are really returning to the requirements that prevailed before the "loose" lending practices that got us in this mess. Those requirements did not stop homebuilding and prices from rising in a good economy. So as our economy improves, it will happen again. In south Hillsborough County (southeast Tampa Bay) builders are already building again!
Deutshe Bank did a new study that measures home affordability in 2 ways: 1) how much of their income Americans are paying to own a home, and 2) the cost of owning vs renting. Down 17.2% since 2007, homeowners now pay just 9.8% of their income for a mortgage with taxes and insurance. In 28 of 54 major markets, it's cheaper to pay for a home than to rent. In all the distressed markets, owning wins by a wide margin.
Conditions are different in every city and not all areas will bounce back equally. In non-distressed cities, existing home inventory is lower. So with just a modest increase in demand they will enjoy strong gains in prices and new construction. This could create a great time to SELL (if you are from one of those non-distressed areas) and buy in a place like Florida which is a bargain again. Many are taking advantage now to purchase their retirement home or condo, even though they are not quite ready to retire! I have recently helped many young couples relocate to the Tampa Bay area from as far north as Canada because they are just wanting a warmer place to live. How about you? Do you fall into one of these categories? Call Bonnie today at (813) 390-7606 so I can help YOU steal some great Florida Real Estate!