It is great to see the housing market bouncing back after the collapse experienced over the last decade. The nation as a whole has been experiencing a much-needed upturn in both home purchases and home prices. Unfortunately, some parts of Florida are experiencing too much of one and not enough of the other.
According to real estate analysts, home and condominium prices in some areas of Florida are at an all time high. This is great news for real estate agents, not so great for new homebuyers. With a majority of incomes in the area not supportive of the high property prices, some analysts fear sellers are hoping to put all their eggs into only the very rich baskets. In Florida, the price of single family homes has grown over 7 percent from this time last year, while per capita income crawled to just over 2 percent from last year. For first time homebuyers that fall within the median income level for Florida residents, being faced with the possibility of paying over 40 percent of their annual income toward a 30-year mortgage is just not reasonable. Skyrocketing real estate prices and a very noticeable lack of affordable housing, makes some analysts wonder what the future holds for Florida real estate.
Although the demand for affordable housing in Florida continues to rise, many developers have opted to construct large condominium and apartment complexes instead of single-family homes. This imbalance of supply and demand has been a historic problem for the housing market in Florida and looks to not change any time soon, putting Florida on the list of most expensive housing markets in the nation.
Source: Realty Today, South Florida Real Estate Update: Home Prices Rising Too Fast, Aug. 12, 2015