Even when the economy as a whole started struggling, Florida’s economy and job base were still strong. The entire state had success bringing in new companies and businesses that brought jobs in the 90s. However recently it has struggled to attract more new businesses thereby making the state dependent on the tourism and housing industries for the most part.  This new wave of inevitable unemployment also had more homeowners unable to make payments on their homes. 

In the past three years Florida property taxes have gone down as home values have dropped. The good side to that has resulted in lower tax bills.   So for those who have been holding out for the best time to dive into the Florida real estate market, all the trends can be confusing at best. There are positive trends though that you should consider while making the decision to buy a home now.

Not only are taxes lower, but homeowners are taking advantage of lower interest rates and refinancing too. By refinancing their home, distressed homeowners have been able to lower their monthly mortgage payments. This in turn also puts fewer homes on the market for resale that may have ended up in foreclosure otherwise.  As prospective buyer, you can expect to save money with lower interest rates too. 

So how does a prospective buyer know when the time is right? Find a local Florida realtor that knows the area you’re interested in to work with, that should be your first step. With your realtor’s help, research and compare between traditional home sales, Florida REO properties and Florida foreclosures. Keep in mind that there are many markets in Florida real estate. The price points, the employment base and the supply of houses will vary in each of these markets. Use your realtor’s knowledge to help you make an informed decision.

With these positive trends, there are some negatives too that need to be considered. These could suggest a prospective buyer should wait to get into the Florida real estate market awhile longer.

As most states, homes that have been foreclosed in Florida are handled by the courts. With an extensive backlog right now, this extends the time it takes for a distressed home to be taken out of the existing home inventory. Areas most affected in Florida by foreclosures have over 10 months of home inventory right now. The mix of homes in that inventory is as much a problem as the amount of homes in that inventory. That supply consists of homes that are on a short sale to those taken back by the lender. The competitive analysis is thrown off by these numbers.

With all these thoughts in process the best things a prospective buyer can do is work with a knowledgeable Florida realtor and do their homework. Finding real estate group with experience in traditional sales as well as Florida REO and Florida foreclosures would be beneficial as well.  This combination will get you the right home at the right time and for the right price.