How to Tell if Florida’s Housing Market Hit Bottom As part of the 10 year retrospective, Roy Oppenheim will be republishing blogs from South Florida Law Blog. (Originally posted MON JUL 7, 2011 on South Florida Law Blog)
The good news: Zillow spotted 25 places that are within single-digit percentage points of their home-value peaks. As a result, spotting the factors that have helped those communities get by may allow all homeowners to better gauge what’s going on where they live—and what the future may hold for their home’s value.
The reality: The biggest reason that most are surviving the downturn is because they never experienced the huge price runups like we did here in Florida or places like Nevada or California.
Here are three big factors to look for. If your Florida community shares any of these traits, you may be on the rebound.
Determining whether your community has passed through the worst of the worst of the housing debacle is its state of employment. The connection between Florida employment and the Florida real estate market has become increasingly greater. An increase in employment has a high likelihood of leading to an improvement in your communities’ real estate situation.
Local rents are very strong indicators of Florida real estate values. Home prices in most communities that have weathered the downturn tend to have lower price-to-rent multiples.
Rent vs. buy calculators are available on may personal finance websites, with most figuring if the purchase price is less than 15 times of the annual rent, the market favors buyers.
Healthier Florida communities have fewer foreclosed properties pulling down values of other homes. Florida foreclosures are the opposing force to employment. Florida employment can boost the real estate market, while Florida foreclosures can put on the brakes.
In 2010, the worst year so far, about 2.23% of all the homes received a foreclosure filing, according to RealtyTrac, a firm that monitors foreclosed properties.
Watch for our next post on Florida’s New House Rules.
From the trenches,
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Original Source: https://southfloridalawblog.com/how-to-tell-if-floridas-housing-market-hit-bottom/
He founded Oppenheim Law in 1989 with his wife Ellen Pilelsky and uniquely positioned the Firm as one of Florida’s leading boutique law firms in Weston, Florida. In addition, in 1994, he co-founded Weston Title & Escrow, the oldest title company in Weston, Florida, and he currently serves as its Vice President.
Weston Title: https://westontitle.com/
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