If you’re interested in buying a home, you may have noticed that the prices in Florida are high. The cost of homes has ballooned significantly over the last decade. This is true not just in Florida, but all across the United States.
Often, high prices are a supply and demand issue. But there are those who argue that, perhaps because the prices are so high, the demand in Florida is rather low. Most people couldn’t afford to buy homes even if they wanted to. So why is it that the prices are still high?
The supply is also very low
Essentially, this is a supply issue. There are not enough homes on the market, so the prices are not going to drop. Even with low demand, there are still more buyers than there are potential properties.
Exactly why this is happening is a bit more complex. In some cases, older people are staying in their homes longer. For instance, there has been an increase in the amount of elderly individuals who pass away at home, as opposed to in nursing homes or hospitals. If people are not downsizing and selling their homes, that keeps the supply very low.
Additionally, corporations are buying houses, and they can afford to outbid individual consumers. This also pushes the price up because corporations can spend more money, and it keeps the supply low because consumers aren’t able to buy the homes that they need.
Navigating the housing market
What this means is that the current housing market is both very complex and very expensive. Those who are working their way through this process need to be well aware of the legal steps to take to do so successfully.