The sun seems to finally be glinting a few rays of optimism on to a struggling housing market. Acting as a microcosm of the incremental improvements being made in the U.S., a recent press release describes how the housing market in Florida has showed demonstrable signs of strength.
"Here in Florida, we're seeing some strong numbers that show positive momentum for the state's housing recovery and our economy," said Summer Greene, regional manager of Better Homes and Gardens Real Estate Florida. "Home prices continue to rise in many markets. Inventory is down to extremely low levels while pending sales are on the rise – almost 38 percent for single-family homes and 25 percent for townhomes and condos. It is not unusual to see multiple offers."
Illustrating the growth that Greene is referring to, figures from the Florida Realtors Industry Data and Analysis department show that median (referring to the midpoint) statewide sales prices for single-family homes rose to $144,350, up more than 10 percent from one year ago. Consequently, many homeowners are getting better prices for their property and even seeing bidding wars in which they get more than they asked for – a trend that was spiralling downward throughout much of the late 2000s.
Additionally, the same figure related to national sales rose nearly 2 percent this past year, signaling recovery throughout the country in general.
Considering these figures, lenders may be seeing an influx in homebuyer applications from individuals that want to penetrate the market before prices rise even higher. For example, as reported yesterday, luxury homes are flying off the market for more than asking prices. As such, it would be wise for lenders to invest in loan management software as well as an amortization calculator to stay abreast of all different clients with various financial situations and deal structures.