The housing market in Florida was hit hard by the recession. As the economic picture looks brighter on a national level, the housing market in Florida is starting to improve. Once plagued by record high home foreclosure rates, Florida is seeing home prices rise again. It may come as a surprise why prices seem to be picking up.
Investment groups have swarmed many areas of Florida and have bought a great number of foreclosed homes. The distressed properties are being gobbled up and rejuvenated for subsequent resale. The investors have essentially bought low, seek to rent the property and plan to sell the properties once they recoup their former value.
For many in Florida who struggled with home foreclosure, renting in their old neighborhoods has become a reality. As investors buy up the homes and locals rent the homes, these former homeowners may soon find they have a chance to buy again once their own finances are more secure. The new batch of potential buyers of these homes may surely pay more than the investors bought the house for. For the overall housing market in the area, the vast buying of the homes has helped the economy overall and made for a potentially stronger real estate market in the future.
This trend may seem like a double-edged sword for Florida residents. Those who are still struggling to keep their home or looking to buy again after a tough financial crisis may want to investigate their options. Renting for some time while their credit improves is one option for those who previously suffered through a home foreclosure. Others may benefit by investigating options to achieve bankruptcy relief through a formal discharge of debts or a court-supervised reorganization of financial obligations.
Source: kunc.org, Big Investors Boosting Home Prices, And Not Everyone’s Pleased, Greg Allen, March 10, 2014