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Investors are gobbling up property in Florida and around the country. This past month I was interviewed on NPR about this very subject. Click Here to Read or Hear The Interview
So, is there a new housing bubble being formed? My quick answer is no. While we’ve had strong appreciation, especially in the under $300,000 part of the market, there are reasons for it. Much of it can be attributed to the 17.8% cumulative inflation since 2007, influx of people moving to the area, extreme lack of new construction, and an improved economy.
The possibilities for a bubble would be if we see a giant amount of new construction and investors purchasing them. So far that has not occurred. There has also been lax lending. FHA, which was 3% of market, is significantly higher. I’ve seen some loans go through with homeowners having low-600 credit scores and putting almost nothing down. Last would be if interest rates moved up significantly.
The one item that should be watched is if investors start pooling all of their property in a portfolio and get 100% loans for more than they paid. However, they still have a vested interest in the property value.
Posted in real estate on April 4, 2014 at 6:24 am.
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From PGA National homes to Admiral Cove, you've discovered the top source of comprehensive information on homes in Northern Palm Beach County communities. Jeff Lichtenstein of Illustrated Properties is the top producing real estate agent in these locations. Jeff has sold over 300 homes, more than anyone else since 2001. He caters to the Waterfront, golf & ranch, and luxury communities here. His focus has always been on providing exceptional service, showcasing quality properties and working with quality clientele. Jeff your only choice for a real estate agent in the area if you're looking for the best. Whether you're looking to sell a home in Admiral's cove or buy one of the beautiful PGA National homes, you need to talk to Jeff Lichtenstein.
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