In the early to mid 2000’s when capital flowed like water and banks gave loans like candy the housing market was booming. Housing prices were skyrocketing and loans were made to people with low credit. Spurred by subprime mortgages it seemed like almost anyone could afford to buy home. Families, investors, and the banks were all happy- it was a win-win for everyone, or so it seemed.
When the housing market began to stabilize investors realized that home values weren’t going to rise forever. Families came to the conclusion that the 2 bedroom home they purchased probably wasn’t worth the million dollars they paid. And most shockingly, banks began to notice that people with low credit sometimes didn’t pay their bills. All of these factors led to one of the worst housing markets in U.S. history.
When the real estate market isn’t doing well it’s typically homeowners who feel it worst. Most people don’t like to see their investments decrease and neither do homeowners. When home values are decreasing many people feel like they’re losing money even if it isn’t physical. And when people feel like their losing money they tend to spend less and a domino effect is created that can effect an entire economy. The entire market could be clouded by a bad stigma.
Today, many people still carry the stigma that the real estate market is “bad” or underperforming, and while that may have been true in the past it isn’t for today. In Florida, year-over-year home values are up almost 15% and many markets are seeing record low home inventories. These low inventories have led to median home sales price increases of over 18%. Homebuilders are building new homes in astonishing numbers compared to prior years and overall development is up in many areas of the state. The real estate market is back and it’s time many homeowners got over the bad stigma of the past and entered the market. With rising home values now is the perfect time to invest in real estate.