Florida mortgage rates are great right now, holding steady at or just below 5 percent. However, the latest housing starts data indicates that home prices may be on the rise.
A “Housing Start” is a home on which construction has started and, for the 4th straight month, national single-family housing starts held steady last month.
When the demand for homes grows faster than the number of homes for sale, prices increase.
As recent home sales data confirms, the number of Florida home buyers currently outpaces sellers, and one consequence of this is an increase in multiple-offer situations this year.
It’s no wonder home prices are up across so many Florida neighborhoods. October’s Housing Starts report is yet another piece of housing data foreshadowing rising home prices into 2010.
Building Permits were also down in October, a potential demand-to-supply imbalance magnifier. Without permits, there’s no future construction. This drains supply. Meanwhile, tax breaks and low rates tend to stimulate demand and, right now, we’ve got both.
Therefore, so long as demand remains semi-constant into the New Year, expect home prices to remain on the rise.
I hope you found this post useful! As always, if you or anyone you know is in need of a local Florida mortgage broker, I’m your guy. Call me at 863-604-3019 or apply online for your Florida mortgage. We’ll keep you posted and let you know when it’s time to pull the trigger!
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The bad news seems to be hitting this week. There was a lot of positive economic real estate news last week, but now all I’m hearing is about how foreclosures are at record highs, and that the economy isn’t expected to recover for a while still…. I sure like the good news more.
Atleast Mortgage Rates are at record lows…
I live to the North of Florida and we have been seeing fluctuations in our building permit numbers. It will be up one month and down the next. However, I can’t help but notice how many partially started subdivisions there are, so it has very noticeably affected us…