As the world continues to battle the COVID-19 pandemic, there’s no denying that the virus has significantly impacted our economy and daily lives. However, amidst the chaos, there are signs of hope, particularly in the housing market. If you’re in Florida and considering purchasing a home, now may be the perfect time to take the leap.
One of the most significant indicators of the economy’s strength is the housing market. This is because housing’s overall contribution to the gross domestic product (GDP), through construction and spending on related services and supplies, averages between 15% to 18%. GDP is the widely accepted metric of economic growth worldwide.
There are several reasons why we’re confident in Florida’s housing market at present. Firstly, applications to purchase a Florida home are currently running 9% higher than they were a year ago, according to recent data on a seasonally adjusted basis. Notably, these figures are even more impressive because the same period last year saw a significantly better economic climate than the one we find ourselves in currently. Despite this, there is still an even greater consumer demand for housing.
Two significant factors are driving this trend. Firstly, the Federal Reserve’s moves to stimulate consumer borrowing and spending have resulted in mortgage rates that are at historical lows, according to Freddie Mac. Moreover, the recent experience of spending more time at home has undoubtedly had an impact. Some people may feel like they need more personal space, while others might realize they don’t need all the extra living space.
Another positive sign for Florida’s housing market is that people are returning to work. While there are still millions of initial claims for unemployment insurance each week, the number of continuing claims has dropped. This is an indication that people are returning to their previous jobs or finding new work, leading to a restoration of income.
Though sales of existing homes have fallen in April and the year as a whole, Florida’s housing market has seen an increase in prices of 2.17% in April and 7.4% on the year. Despite this, inventory has slightly increased, indicating that now may still be the right time to buy for those seeking to step on the property ladder. Furthermore, it is important to note that new home sales in Florida were up 0.6% in April, showcasing that interest in the housing market is still present.
For Florida-based buyers, it is important to note that the prices of newly constructed homes have been falling since February and are down 8.58% since April of last year. This means that now is an excellent time for those looking for newer homes to take advantage of the lower price points.
While the COVID-19 pandemic has caused significant disruptions to our lives, there are reasons to be optimistic about the future, particularly when it comes to Florida’s housing market. If you’re thinking of purchasing a home in Florida, now might be the perfect opportunity to do so.
Are you considering purchasing a home in Florida during these uncertain times? Look no further than Franklin Mortgage Holdings. Our non-conforming mortgage loan brokerage specializes in creating customized loan options to fit your unique financial profile and property needs. With the current state of the housing market amidst the COVID-19 pandemic, it’s more important than ever to work with a professional and friendly team who can guide you through the process. Trust us to help make your dream of owning a Florida home a reality. Contact us today to learn more.
