Leading Experts Say The Housing Market Will Not Recover..Really? What is Happening in the Florida Housing Market

Leading “Experts” Predict the Housing Market will not recover…really?  As leading St Cloud RealtorFlorida Realtor and Kissimmee Real Estate Expert-I beg to differ. Real Estate has always been a cycular commodity. Even in the Great Depression of 1929, the housing market did bounce back then; just as it will again, but in a much more controlled slow manner. If one expects instant gratification and rebound-that will not happen.

How will the housing market  recover occur? Let’s Look at the Florida Housing Market. As a leading Realtor/Broker in St. Cloud Florida, I can say with certainty that the recovery of the housing market in St. Cloud and Kissimmee Florida Housing market is largely dependant upon the banking industry and foreclosed homes being held in silent inventory.

 If the banks release  too many foreclosed homes  at one time, the market will be oppressed for an extended duration. However, if the foreclosed inventory is released incrementally, prices will make gains, as they are currently in the St Cloud and Kissimmee Florida areas, although modestly. These areas were among the hardest hit in the Housing Market Crash. So the fact that gains are being made is noteworthy.

The real question is it sustainable?

Only if the banks continue to make foreclosure  releases in moderation. It will take years to liquidate the surplus inventory of homes they currently are holding as a result of defaulting borrowers.  However, as history indicates here in the US, 6% annual gains in the housing market were sustainable for over 30 years prior to the artificial creation of the housing bubble which was attributed to the media fueling a  manufactured frenzy, lenders offering loan products which were designed to put borrowers in jeopardy and lack of consumer knowledge in general regarding the terms and conditions of the loan they were being offered which were too good to refuse for many. The frenzy created  was unsustainable and unrealistic, causing hyper inflation of homes and subsequently had no other reasonable course but to decline when borrowers failed to meet their mortgage obligations. 

So FOUR years later….

The housing market in the US is making gains in year over year comparisons. They are not overly impressive gains, but are gains none the less.  There  is ample opportunity for first time home buyers to enter the housing market from which they were previously excluded due to hyper inflation of housing prices.  .

FACTORS OFTEN OVER LOOKED BUT WORTHY OF A MENTION

 Renters: Shut out buyers have been laying in wait, and have now discovered they can afford housing. Prices have reverted to previously low levels which is opportune timing for them. They will transition from renting to buying.

Women will buy in larger volume than they did previously. As much as as 20% is predicted to be female professional women

We have the return of thousands of Veterans with benefits reentering the housing market.

 Loans will be secure, and they also now have opportunities available to them to  utilize those VA benefits which they earned while in Military Service.

They will now, just as they did back in the 1940’s after WWII stimulate the housing market.

In addition, we have a growing population of baby boomers who are well qualified and funded with retirement income, dividends from other investments, and pension plans looking to invest in housing as a shield from higher proposed taxes, and as a means of protecting their estates from increased taxation.

They are in an excellent position to purchase now, hold for future generations, or subsidize their previous investment income by transitioning into rental ownership until such time the market recovers.

 There are four or more sectors of the population which can and will sustain the housing market.  The key is in the hands of consumers as well as the control of release of the previsously foreclosed  home inventory.  Do not expect instant gratification- there is no quick fix other than time for the housing market to heal and regenerate which is slowly beginning to do.

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