Florida real estate markets and the phenomenon of Florida foreclosures have lately come into sharp focus down in the Sunshine State. It has much to do with a lot of the speculation in land and properties that’s been going on down in Florida for many years, to tell the truth. Unfortunately, speculation can always lead to an inevitable decline in property values, which it’s done in Florida of late.
Why so many people believed that property values would continue to rise indefinitely is a mystery, and maybe it’s because Florida real estate has been on a steady upward curve for quite a while until the last 18 or so months. Once the recession really began to kick in, though, Florida eventually started to follow the rest of the country in its real estate behavior.
The Sunshine State, though, was able to avoid much of the housing bubble burst and its effects for quite some time after California and places such as Las Vegas saw their own home values decline precipitously over the last couple of years. Maybe it was because Florida had no personal income tax and good employment figures that continued to attract new immigrants where other states saw drops in population.
“Out-migration” is when a state begins to experience a population decline due to people picking up stakes and relocating to another state altogether. California had been experiencing this migration on a small level for last decade (it’s lately turned into a noticeable decline, of late) but Florida continued to attract people drawn to it by the weather, relatively low taxes and high unemployment.
It should come as no surprise, however, that even Florida would not be immune to the effects of such migration and recession forever. The steep recession finally, in fact, began to hit Florida beginning in late 2008. With unemployment up and property values down, those who bought into quite-frankly overpriced real estate are now seeing their homes worth much less than they paid for them.
Of course, this has seen people holding onto real estate now being forced to confront the fact that the real estate they’re holding is worth less than they can hope to recoup in the near future. With a general increase in unemployment, many people are also now finding themselves with fewer options that will allow them to hold onto their property, which means foreclosures have also begun to increase.
Fortunately, the federal government — in conjunction with the states — has enacted certain laws that can make it easier for people to avoid foreclosure while also helping the Sunshine State reduce the rate of FL foreclosures in any meaningful way. Whether or not Florida real estate markets ever behave as other markets around the country do is uncertain, but maybe it will and then maybe real estate prices can begin to rebound to previous levels, at least.
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