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Orlando Branch

Orlando is the fourth largest city in the state of Florida and the 73rd largest city in the United States. Located in Florida’s “sun belt” region, this city is known for its warm climate, beautiful beaches, and even more so for its world famous amusement parks, entertainment, and attractions. Land Home Financial Disney & Universal Studios.

With a combined population of 3.3 million residents, Orlando’s real estate market is fueled by job seekers, baby boomer retirees, and students who want to live in a “cheap and cheerful” area that offers a high quality of living at a reasonable cost. For investors looking to invest in real estate, these are good signs.

OrlandoThis area has produced some impressive results for real estate investors already and this trend is likely to continue into 2018. To date, property prices are up, appreciation rates are increasing steadily, and the cost of living remains below the national average.

 

More Reasons To Love Orlando:

  • Forbes reports that 60 million people visited the Orlando area in 2015, making it the most visited tourist destination in the country.
  • The population in Orlando has grown 41% since the year 2000. To date, Metro Orlando houses over 2.3 million residents.
  • Rents grew by 3.4% in the last 12 months, which is higher than the national and state levels. Employment is likely to grow 4.2% a year through 2017, according to Moody’s. Foreclosure laws have helped keep home prices significantly below their last peak but rates are rising.
  • Orlando’s employment growth is among the best in the U.S. with 173,900 jobs created since the recession and a growth rate of 4% per year.
  • Orlando’s population has grown 41% since the year 2000 and is expected to grow an additional 1.5% in 2017, which means the demand for housing is likely to increase. Orlando Medical City boasts a $7.6 billion economic impact and will create 30,000 jobs.
  • Amazon Fulfillment recently opened, bringing 4,000 jobs to Central Florida, the current leader in job and population growth in the state.
  • Orlando was recently named the “hottest” single-family real estate market among the 50 largest US metro areas (Ten-X Research’s quarterly report). According to the report, Orlando has been elevated to the nation’s top market position due to limited supply, rising home values, ample jobs and income growth, especially in the leisure/hospitality sector.

6 Tips to Get Approved for a Home Mortgage Loan

Some people don’t know the first thing about getting a mortgage loan. Applicants who don’t recognize key differences in the application process from anything they’ve applied for are often disappointed when a lender denies their mortgage loan application. Here’s six tips to help you get approved.

Educating yourself is key, and there are a number of ways to avoid this heartache and disappointment when applying for a mortgage loan.

Getting Your Mortgage Loan Approved

Buying a house is already stressful and being ill-prepared heightens the anxiety. Why put yourself through this? Learn how to think like a lender and educate yourself on the best ways to get your mortgage loan approved:

1. Know Your Credit Score

It literally takes a few minutes to pull your credit report and order your credit score. But surprisingly, some future home buyers never review their scores and credit history before submitting a home loan application, assuming that their scores are high enough to qualify. And many never consider the possibility of identity theft. However, a low credit score and credit fraud can stop a mortgage application dead in its tracks.

Mortgage Approval TipsCredit scores and credit activity have a major impact on mortgage approvals. In addition to higher credit score requirements, several missed payments, frequent lateness, and other derogatory credit information can stop mortgage approvals. Pay your bills on time, lower your debts, and stay on top of your credit report. Cleaning up your credit history beforehand and correcting errors on your report are key to keeping up a good credit score.

2. Save Your Cash

Requirements for getting a mortgage loan often change, and if you are considering applying for a home loan in the near future, be ready to cough up the cash. Walking into a lender’s office with zero cash is a quick way to get your home loan application rejected. Mortgage lenders are cautious: Whereas they once approved zero-down mortgage loans, they now require a down payment.

Down payment minimums vary and depend on various factors, such as the type of loan and the lender. Each lender establishes its own criteria for down payments but aim for a higher down payment if you have the means. Lenders attach this extra insurance to properties without 20% equity, and paying PMI increases the monthly mortgage payment. Get rid of PMI payments and you can enjoy lower, more affordable mortgage payments.

Saving Tips from Land Home FinancialAdditionally, down payments aren’t the only expense you must worry about. Getting a mortgage also involves closing costs, home inspections, home appraisals, title searches, credit report fees, application fees, and other expenses. Closing costs are roughly 3% to 5% of the mortgage balance – paid to your lender before you can seal the deal. Not to mention, the new furnishings that you will be eager to buy to fill empty spaces. Be careful and wait for at least three months until you settle in and understand the full picture.

3. Stay at Your Job

Sticking with your employer while going through the home buying process is crucial. Any changes to your employment or income status can stop or greatly delay the mortgage process.

Lenders approve your home loan based on the information provided in your application. Taking a lower-paying job or quitting your job to become self-employed throws a wrench in the plans, and lenders must reevaluate your finances to see if you still qualify for the loan.

4. Pay Down Debt and Avoid New Debt

You don’t need a zero balance on your credit cards to qualify for a mortgage loan. However, the less you owe your creditors, the better. Your debts determine if you can get a mortgage, as well as how much you can acquire from a lender. Lenders evaluate your debt-to-income ratio when approving the mortgage. If you have a high debt ratio because you’re carrying a lot of credit card debt, the lender can turn down your request or offer a lower mortgage.

Paying down your consumer debt before completing an application lowers your debt-to-income ratio and can help you acquire a better mortgage rate. But even if you’re approved for a mortgage with consumer debt, it’s important to avoid new debt while going through the mortgage process.

As a rule, avoid any major purchases until after you’ve closed on the mortgage loan. This can include financing a new car, purchasing home appliances with your credit card, or cosigning someone’s loan.

5. Get Pre-Approved for a Mortgage

Getting pre-approved for a mortgage loan before looking at houses is emotionally and financially responsible. On one hand, you know what you can spend before bidding on properties. And on the other hand, you avoid falling in love with a house that you can’t afford.

The pre-approval process is fairly simple: Contact a mortgage lender, submit your financial and personal information, and wait for a response. Pre-approvals include everything from how much you can afford, to the interest rate you’ll pay on the loan. The lender prints a pre-approval letter for your records, and funds are available as soon as a seller accepts your bid. Though it’s not always that simple, it can be.

6. Know What You Can Afford

I know from personal experience that lenders do pre-approve applicants for more than they can afford. After receiving a pre-approval letter from our lender, my husband and I wondered whether they had read the right tax returns. We appreciated the lender’s generosity, but ultimately decided on a home that fit comfortably within our budget.

Don’t let lenders dictate how much you should spend on a mortgage loan. Lenders determine pre-approval amounts based on your income and credit report; however, they don’t factor in how much you spend on daycare, insurance, groceries, or fuel. Rather than purchase a more expensive house because the lender says you can, be smart and keep your housing expense within your means.

Final Thought

If you don’t meet the qualifications for a mortgage loan, don’t get discouraged. Instead, let it be motivation to improve your credit and finances. Many people have risen above credit problems, bankruptcy, foreclosure, and repossession specifically in order to purchase their first house. Just be sure to implement a realistic plan and stick to it.


Stay Within Budget When Buying a House

5 Budgeting Tips

A house is likely to be the most expensive purchase you’ll ever make. And if you’ve waited a long time for this day to come, you’ve undoubtedly thought about the features you desire – maybe you’re craving a huge master bedroom with walk-in closets, or perhaps a gourmet kitchen. We’ve listed five budgeting tips for you to follow that will help you out.

While you don’t want to skimp on the amenities you love, adding too many can drive up the cost and destroy your budget. By thinking about your long-term financial goals and assessing your budget before you buy, you can score the home you want without experiencing buyer’s remorse.

1. Establish a Firm Price Limit and a List of “Must Haves”

When you’re pre-approved for a mortgage, your bank determines how much they think you can afford to spend on a house. But don’t assume the number they provide is the amount you should spend.

Go online and use a mortgage calculator – after you enter a sale price, a loan term, and interest rate, the calculator estimates your monthly payment, including home-owners insurance, property taxes, and private mortgage insurance. Also, research whether there are other expenses you’ll need to work into your budget after buying a home.

5 Home Buying Budgeting Tips with Land Home FinancialFor instance, association dues, a lawn or pest service or possible higher utilities; these costs can really add up and eat into your monthly budget. If you decide in advance which amenities are “must-haves” and which would simply be nice to have, you’ll be in a better position to stay within budget when you start looking at homes.

 2. Keep Tabs on Your Real Estate Agent

Land Home Financial Realtor PartnersI’ve had only positive experiences with my real estate agents, but not everyone is as lucky. Good agents respect your finances and only show you homes you can afford.

That being said, some agents may try to push the envelope and recommend properties outside your price point. Be firm and stick to your guns.

3. Don’t Compare Yourself to Others

It’s very easy to fall into the cycle of “compare and despair.” This is a nasty cycle to fall into, especially when it comes to buying a home. A house isn’t a pair of shoes or an expensive handbag – if you overspend when buying a house, it isn’t easy to recover from the mistake.

Rather than obsessing over the fact that your friend bought a house with an outdoor kitchen, offer your congratulations, and then get excited about what your budget can do for you. Maybe you’ll have four bedrooms instead of two, or you’ll have a gas oven instead of an electric one. Then, think about the ways you’ll benefit from staying within your budget, such as maintaining a healthy vacation or a retirement fund or starting a college fund for your kids.

4. Avoid Bidding Wars

Competing with other buyers is no picnic, and to win a bidding war, you often have to increase your offer. This isn’t necessarily bad, as long as you’re able to stay within budget – however, bidding wars can get out of hand quickly.

If you get caught in a bidding frenzy, you could end up spending more than you want. Decide how much you’re willing to pay for a particular house in advance, and resist the urge to exceed that limit. In other words, be willing to walk away.

5. Bid on Houses That Aren’t Selling

Some buyers shy away from homes that have been on the market for a long time, assuming that there must be some hidden defect. But sometimes, a home’s inability to sell is much more simple. For instance, maybe it just has bad curb appeal, or there’s too much inventory in a particular market.

Therefore, it is important that you do not automatically rule out a house just because it has been sitting for a long time. If anything, seek out these houses. The seller is probably motivated and willing to drop the asking price to move the property.

Even if the seller isn’t willing to drop the price, there are still more opportunities for negotiation when a home has been on the market for months. If you can identify the reason the property hasn’t sold, then you can ask the seller to reduce the home’s asking price or provide a cash allowance for the fix.

If you’re still concerned about possible hidden defects, state in your bid that the offer is subject to a satisfactory home inspection – which is a good idea no matter what.

Final Word

Staying within budget when buying a house takes discipline, so you must approach the buying process with care. Know what you’re willing to spend, and refuse to look at homes listed above your budget. If you’re unable to find a suitable property after a few weeks or months, revisit your budget to see if you have any wiggle room. If not, hold out – it’s only a matter of time before the right house comes along.

 

 


Choose Land Home Financial as Your Preferred Builder

Preferred Lender for All Builders

What we found working with many other builders is that they usually have their own lender and then a list of three preferred builder lenders to choose from if their in-house lender cannot approve them they select from the Alternative List.

Preferred Builder Lender

As a builder you can’t afford to NOT have us as one of your Preferred Lenders and here’s why…

  • We’re a Direct Lender – servicing our own loans.
  • 4% Grant for primary home buyers up to $454,100.00
  • We offer both state and local bond assistance programs.
  • Our “Power Purchase” program with 1% down for frst time home buyers.
  • USDA, FHA & Conventional Loans.
  • VA loans with no lender fees.
  • We have a Builder Processing Center specialized for builders providing status updates.
  • We offer extended rate lock for 6-months during the building process.

We Help with “Turn Downs”

Additionally, we have a about a 70% conversion rate on “turn downs” from already built homes from the following builders: Lennar, Pulti, Park Square, KB Homes, DR Horton, Snow Construction, Meritage, Minto & Toll Brothers and am very confident we can do the same with your organization.

*Please note all percentages and statements are subject to change based on regulations that may arise. The use of hypothetical, predictive, and current statements, by Land Home Financial Services are meant to illustrate current operation standards.


We’ll Take the Loss for You

We Lost for You to Gain

Nonbanks lost money originating mortgages so far this year, as per-loan profitability plunged into negative territory for just the second time in a decade, the Mortgage Bankers Association (MBA) recently reported. Regardless, we are here to see you to get into your dream home!

Nonbanks reported a net loss of $118 per loan, down from a gain of $237 in the fourth quarter, the trade group said. The cause of this year’s loss was lower mortgage volume.

In the first quarter of 2018, falling volume drove net production profitability into the red for only the second time since the inception of our report in the third quarter of 2008,” said Marina Walsh, MBA’s vice president of industry analysis.

Profit“While production revenues per loan actually increased in the first quarter, we also reached a study-high for total production expenses at $8,957 per loan, as volume dropped.”

Being a Direct Lender Allows us the Servicing

Walsh said the losses were somewhat offset by increased servicing revenue.

Overall production expenses rose into new record territory. Total expenses increased by $482 per loan over the quarter to $8,857 per loan. Production expenses per loan were $2,733 higher in the first quarter of this year than the long-run average expense of $6,224 going back to 2008, the trade group said.

Driven by a sharp drop in rate-term refinancing activity, MBA is forecasting that overall mortgage volume will end the year down this year, clocking in at around $1.6 trillion, which is down about 6 percent from 2017.

Mortgage Application Volume

On a positive hopeful note, home-purchase loan volume is anticipated to gain about 5 percent, to $1.17 trillion, according to MBA’s most recent forecast. Now is the time to buy, stop renting and allow Land Home Financial to assist you with the right product.


Homeownership Month is Here

June is Homeownership Month

Land Home Financial and its new homeowners are celebrating National Homeownership Month in June. And with good reason: New research shows a household’s primary residence is its largest asset and continues to provide an important building block for long-term financial security.

One-Quarter of All Assets

The latest edition of the Survey of Consumer Finances, published by the Board of Governors of the Federal Reserve System, reports that the primary residence accounts for about one-quarter of all assets held by households in 2016, ahead of other financial assets, business interests and retirement accounts.

Land Home Financial Homeownership month in June“Homeownership is a primary source of net worth for many Americans, and is an important step in accumulating personal financial assets over the long term,” said Randy Noel, NAHB chairman and a custom home builder.

Land Home Financial Loan Officers and Realtor Partners have a great opportunity to promote the benefits of homeownership during National Homeownership Month. Let’s see as many as we can get into a new home. With our mortgage products, expertise and sincere care, we can do it!!

Owning a Home Stabilizes Families

To have a place called “home” is priceless in stabilizing the growth and security of each member of the family. When a parent knows that their kids are safe, happy and have a place of their own, then they can be all they can be to provide for their household. For a child to know that their home and life is stable enables them to be free to  grow, play and learn to be the best they can be and enjoy living.

 

 


5 Things to know about Single-Family Home Investing

Single-Family Home Investing

1. Know your investing criteria first

With any investment, be it stocks, bonds or real estate, you need to know what your objectives are and it is no different with single-family home investing. If you’re focused on safety and security, consider exploring low-risk investment homes that generate steady, reliable yield. An example of this may be a more expensive investment property in a good school district. You’re going to get a lower yield, but you may see better downside protection and less volatility. If you have a longer-term horizon or you’re seeking higher returns, you may want to take on a little more risk. Often, lower-priced homes will be more risky, but you may get higher yields and potentially higher long-term returns.

2. Don’t limit your investment property search to where you live

If your primary residence, income property, and job are all located in the same area, you have a lot of concentrated risks and are more vulnerable to the swings of the local economy. An online marketplace for buying and selling leased single-family rental homes, spread risk by investing in markets outside of where they live. (Hiring a local property manager or a “local community lender” like Land Home Financial is key here.)

Diversification is just one reason to expand your investment property search. You won’t be able to find a great income property for $100,000 in Seattle, Denver, or Oakland, Calif.; but you can if focus on the Midwest, South and Southeast, including Florida.

3. Separate investing from operations

One of the appeals of investing in single-family rental homes is you can hire strong local property management firms to handle day-to-day management tasks of rent collection, repairs and maintenance, and leasing. Over the past several years, property managers have adopted new technologies and business processes to manage homes more effectively for owners.

While some people do choose to self-manage, hiring a property manager can save you a lot of time and potentially money in the long run. While property management companies typically charge between 7% and 8% of the rent, they manage properties for a living and can work to ensure the property is leased, in good condition, and the tenants are happy. Additionally, using a local property manager effectively allows you to buy properties outside of where you live, as self-managing is difficult if the property is not nearby.

4. Real estate investing is a marathon, not a sprint

You might be familiar with the house-flipping reality TV shows in which a person buys a home, fixes it up, and sells quickly for a profit. While that can be an effective way to make a one-time profit, it’s the exact opposite of how you should approach single-family rental home investing, which is about building long-term wealth. Instead, treat it like a nest egg.

In addition, don’t be overly influenced or reactive to short-term fluctuations in your rental property portfolio. You may own a home for a few months and have to deal with a tenant moving out unexpectedly, but the next tenant might reside there for several years before you have another vacancy. Look at this investment over a multi-year horizon and consider your overall outlays and inflows over that long timespan. If you buy a decent house in a decent area, the returns tend to be quite attractive over time and can add a nice counterbalance to other types of investments.

5. Take advantage of the tools and resources available to you

New developments in technology and data access are making real estate ownership more broadly accessible to the everyday investor.

Single-family rental homes currently is a $3 trillion industry, with 1 million homes trading hands among investors every year. The investment opportunities are ripe, and never has it been less complicated for investors to buy and own homes outside their geographic location.

*Whether you are buying or selling, Land Home Financial can assist. We have developed Partner Relationship all over Florida to accommodate our customers*


Builder Confidence Climbs to 70 in May

Builder Confidence in the Market

Builder confidence in the market for newly built single-family homes rose two points to 70 in May after a downwardly revised April reading on the NAHB/Wells Fargo Housing Market Index (HMI). This is the fourth time the HMI has reached 70 or higher this year.

“The solid May report shows that builders are buoyed by growing consumer demand for single-family homes,” said NAHB Chairman Randy Noel. “However, the record high cost of lumber is hurting builders’ bottom lines and making it more difficult to produce competitively priced houses for newcomers to the market.”

“Tight housing inventory, employment gains and demographic tailwinds should continue to boost demand for newly built single-family homes,” said NAHB Chief Economist Robert Dietz. “With these fundamentals in place, the housing market should improve at a steady, gradual pace in the months ahead.”

Derived from a monthly survey that NAHB has been conducting for 30 years, the HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.Builder Confidence in Land Home Financial

The HMI chart gauging current sales conditions increased two points to 76 in May while the indexes measuring buyer traffic and expectations in the next six months remained unchanged at 51 and 77, respectively.

Looking at the three-month moving averages for regional HMI scores, the West and Northeast held steady at 76 and 55, respectively. Meanwhile, the South and Midwest each edged down one point to respective levels of 72 and 65.

See detailed tables at nahb.org/hmi. More information on housing statistics is also available at housingeconomics.com.


Orlando’s Current Real Estate Market Overview in 2018

Orlando’s Real Estate 2018 Overview

This area has produced some impressive results for real estate investors already and this trend is likely to continue into 2018. To date, property prices are up, appreciation rates are increasing steadily, and the cost of living remains below the national average.

Orlando is the fourth largest city in the state of Florida and the 73rd largest city in the United States. Located in Florida’s “sun belt” region, this city is known for its warm climate, beautiful beaches, and even more so for its world famous amusement parks, entertainment, and attractions.Orlando Walt Disney

With a combined population of 3.3 million residents, Orlando’s real estate market is fueled by job seekers, baby boomer retirees, and students who want to live in a “cheap and cheerful” area that offers a high quality of living at a reasonable cost. For investors looking to invest in real estate, these are good signs.

Orlando’s employment growth is among the best in the U.S. with 173,900 jobs created since the recession and a growth rate of 4% per year.

Why Invest in Orlando?

Orlando offers great opportunities for buy and hold real estate investments today. This is especially true for investors looking to invest in one of the most quickly growing economies in the nation while prices are still below their pre-recession peaks.

Today the median price of three bedroom single family homes in the Orlando metro area is $188,000. This is just slightly higher than the national average of $187,000.

This shows us that while property values in Metro Orlando are more expensive than other U.S. markets today, it’s still possible to purchase single family homes below the national average.


3 Most Common Real Estate Markets

1) A Balanced Florida Real Estate Market

A balanced real estate market is where both the supply and demand for homes and condos in a particular area is roughly equal. In a balanced real estate market there is about a six month supply of homes on the market.

A balanced real estate market is not something that usually happens for a long period of time in Florida. But that’s okay really, it’s usually just a threshold that is passed as Florida is transitioning from a buyer’s market to a seller’s market or vice-versa. The odds are that you will not likely move to Florida when it’s a balanced market.

2) A Florida Buyer’s Market

A buyers market in Florida happens when there are more people who what to sell (often to leave the state) than there are people who want to buy. During a buyer’s market in Florida there will be more than a six month supply of homes for sale. This means there will usually be a lot of homes to chose from in your price range.

florida buyer's market and seller's marketBecause the supply of homes exceeds the demand for them in a Florida buyer’s market, buyers can take their time when shopping for a home because homes will sit on the market for many months, possibly a year or longer without selling. Buyers may not want to be too eager to make an offer because sellers will often reduce their prices. Even if they don’t drop the price, more sellers are willing to entertain low offers because they have no idea how long it may be until the next offer comes along, if at all. And that offer may even be lower.

In a strong buyers market, you will notice more for sale signs appearing on more homes every week. Those new listings may also be priced lower than existing for-sale homes in the area thereby pressuring those older sellers to reduce their price in order to compete. Buyer’s markets can be lots of fun for buyers but not much for sellers and real estate brokers.

The best time to buy in Florida is during one of the many frequent buyer’s market’s, when homes and condos are selling at steep discounts of 30% or more and there’s more homes coming on the market every day.

3) A Florida Sellers Market

A seller’s market is when there are more buyers looking for homes and condos in an area than there are properties for sale. When this happens, sellers can expect to sell their home in less that six months. In a strong seller’s market a nice home may sell within weeks, days or even hours.

When there are more buyers than available homes, prices go up. In Florida, it’s not uncommon for demand to far outstrip the supply of homes for sale and push list prices skyward. During a strong seller’s market you may notice fewer for sale signs in the front yard of homes every week.

Seller’s markets are not fun for buyers. Prices are high. There is less inventory to chose from. Buyers may feel pressured to buy now because if they don’t prices may even be higher next month. During strong seller’s markets, many buyers may end up paying far more than they want for a home they really don’t like very much, simply because they believe it will be even worse if they don’t act now.

Strong Seller’s markets are fun for sellers, real estate agents that can still successfully compete for listings as inventory gets scarce, flippers (investors that buy homes, do no or minimal improvements, then jack up price and put it right back on the market) and new construction builders.

Regardless of “where” the market is, becoming a home can be the rewarding feeling knowing that you are stabilizing your family’s future and creating a legacy of building wealth and living the American Dream. We are standing by ready to help you achieve your home dreams!


Buying or Selling in Florida

If I was Going to Buy or Sell in Florida I Would…

If I was thinking of selling in Florida, I would sell now before this strong seller’s market comes to an end, which may happen much quicker than many realize.

If I living in Florida and was thinking of buying now, I would still move forward and consider buying. On the flip side, if I was thinking of moving to Florida but didn’t have to move right now, I might wait until after the current Florida real estate homes pricing settles just a little and lots of homes come on the market to choose from.land home financial buyer and sellers market

Caveats

    • The Fed has lowered interest rates to the lowest point ever and kept them there for longer than ever before. We are in uncharted territory as they raise rates.
    • The US has a downturn or recession every 7 years on average. It’s been longer that that since the last one. So the odds are, normally, …but he stock market hit a new high right after the 2016 presidential election. If a recession develops in 2018-2019, Florida real estate prices could drop substantially causing a fantastic buying opportunity of up to 50% or more off current home prices.
    • I’m hearing “you should buy now because if you don’t, prices will just be higher next week” and “It’s different this time because there’s a wave of babyboomers coming that will cause prices to just keep going up and Florida is the new California, etc.” This is exactly what they were saying right up to the last day before the Florida real estate bubble popped and home prices proceeded to drop 60% on average.
    • When this current bubble pops, prices will likely drop the most in neighborhoods where homes are occupied mainly by people who bought to live in Florida full-time.
    • Prices usually drop less in areas where homes and condos are mostly owned by wealthier folks who mainly only occupy them during the winter months such as in Palm Beach (Note: Not Palm Beach County in general, not West Palm Beach, etc., but the town of Palm Beach on the key) and Naples proper.

So Where Are Florida Home Prices Now?

  • People who moved to Florida during the 10 year “hurricane drought” only to be forced out of their homes for the first time in their lives during the “return to normal” 2017 hurricane season, will decide that where they moved from, wasn’t so bad after all and want to sell. This will increase supply and lead to lower prices.
  • People that were forced out of their homes and have not been able to return to them because hurricane damage, have already move and established life elsewhere. A high percentage of these homes will go up for sale, increasing supply and lowering prices.
  • The 2017 hurricane season which devastated parts of Texas, then Florida and finally Puerto Rico was heavily reported nationwide, slowing demand as people think twice about moving to Florida. This is reducing demand.
  • The “normal” 30,000 or so who move out of Florida for monthly now for reasons other than hurricanes, continues.
  • This has worsened throughout the year as the 2017 hurricane damage money is spent and all the those additional workers and jobs leave the state, reducing housing demand and leading to lower prices.

Where Are They Heading?

Bottom Line: What will Happen to Florida Real Estate Prices in 2018 and 2019

  • Look for growing inventory, homes sitting on the market longer and price reductions this year in 2018. This will gain steam as the year progresses and interest rates increase.
  • If the annual 6 month hurricane season in Florida in 2018 is another “normal” one like 2017 with evacuations and damage, look for Florida real estate prices to tank in 2019, fingers crossed that won’t be the case.
  • If the country experiences a downturn or recession (historically we are overdue for one) look for Florida real estate prices to drop like a rock in 2019.
  • If both of those things happen, look for Florida real estate prices to collapse and rapidly drop up to 50% or more in 2019 as the floodgates of sellers opens up and the pipeline of buyers slows to a trickle.