Florida real estate markets and the phenomenon of Florida foreclosures have lately come into sharp focus down in the Sunshine State. It has much to do with a lot of the speculation in land and properties that's been going on down in Florida for many years, to tell the truth. Unfortunately, speculation can always lead to an inevitable decline in property values, which it's done in Florida of late.
Why so many people believed that property values would continue to rise indefinitely is a mystery, and maybe it's because Florida real estate has been on a steady upward curve for quite a while until the last 18 or so months. Once the recession really began to kick in, though, Florida eventually started to follow the rest of the country in its real estate behavior.
The Sunshine State, though, was able to avoid much of the housing bubble burst and its effects for quite some time after California and places such as Las Vegas saw their own home values decline precipitously over the last couple of years. Maybe it was because Florida had no personal income tax and good employment figures that continued to attract new immigrants where other states saw drops in population.
This sort of population increase couldn't last for ever, of course, and it soon became the case that Florida saw out-migration (more people leaving than coming into the state) for the first time. California has been experiencing a small level of such out-migration for a decade or more. Unfortunately, fewer people means less taxes, which Florida is also finding out about.
It should come as no surprise, however, that even Florida would not be immune to the effects of such migration and recession forever. The steep recession finally, in fact, began to hit Florida beginning in late 2008. With unemployment up and property values down, those who bought into quite-frankly overpriced real estate are now seeing their homes worth much less than they paid for them.
Of course, this has seen people holding onto real estate now being forced to confront the fact that the real estate they're holding is worth less than they can hope to recoup in the near future. With a general increase in unemployment, many people are also now finding themselves with fewer options that will allow them to hold onto their property, which means foreclosures have also begun to increase.
It doesn't have to be that way, of course, because there are numerous programs, both at the state and federal level, aimed at putting a stop to the increasing number of FL foreclosures. It'll depend on how rationally the real estate markets are going to behave over the next year or so, of course, and on an equally-inevitable return to real estate as an ever-increasing investment vehicle. Whether that happens soon remains to be seen. - 31862
Why so many people believed that property values would continue to rise indefinitely is a mystery, and maybe it's because Florida real estate has been on a steady upward curve for quite a while until the last 18 or so months. Once the recession really began to kick in, though, Florida eventually started to follow the rest of the country in its real estate behavior.
The Sunshine State, though, was able to avoid much of the housing bubble burst and its effects for quite some time after California and places such as Las Vegas saw their own home values decline precipitously over the last couple of years. Maybe it was because Florida had no personal income tax and good employment figures that continued to attract new immigrants where other states saw drops in population.
This sort of population increase couldn't last for ever, of course, and it soon became the case that Florida saw out-migration (more people leaving than coming into the state) for the first time. California has been experiencing a small level of such out-migration for a decade or more. Unfortunately, fewer people means less taxes, which Florida is also finding out about.
It should come as no surprise, however, that even Florida would not be immune to the effects of such migration and recession forever. The steep recession finally, in fact, began to hit Florida beginning in late 2008. With unemployment up and property values down, those who bought into quite-frankly overpriced real estate are now seeing their homes worth much less than they paid for them.
Of course, this has seen people holding onto real estate now being forced to confront the fact that the real estate they're holding is worth less than they can hope to recoup in the near future. With a general increase in unemployment, many people are also now finding themselves with fewer options that will allow them to hold onto their property, which means foreclosures have also begun to increase.
It doesn't have to be that way, of course, because there are numerous programs, both at the state and federal level, aimed at putting a stop to the increasing number of FL foreclosures. It'll depend on how rationally the real estate markets are going to behave over the next year or so, of course, and on an equally-inevitable return to real estate as an ever-increasing investment vehicle. Whether that happens soon remains to be seen. - 31862
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