Living in U.S, settling in Florida, a place full of scenic beauty is a dream to become true for most of the people. The reality is, however, a bit bitter to taste because, to let your dream come true, you need to be financially healthy which is a tough task. Since many years the houses demands are continuously rising in Florida whereas the income of people remains stagnant. After putting years of struggles when you manage to build a house, you need to protect your property to secure years of hard work that you put in. There could be no way better to protect your property in Florida than getting it insured. Above all, have we ever analyzed the current house buying power in Florida?
The housing prices have always been on a high for so many years in Florida. However this year a hopeful news for house hunters is that the total rate of household income in Florida was greater than the speed of the houses appreciation in Florida. The Census Bureau has revealed that family income has increased up to nearly 3% since 2013. Almost a very fundamental and significant advantage is that now people will be earning more money from their salaries and will hence have the chance to afford more rates in the mortgage payments. This way it would be easier for people to afford to buy a living at a more reasonable cost of mortgage which once seemed always next to impossible.
Having a rise in income is adequate to convince us that people could now afford houses easily? Is decision power that easy to make now? The reality is that it is still not easy for the people to purchase the house just like that because no matter the income rate was higher than houses appreciation rate but that can’t change the fact that people still don’t have sufficient income to afford a house. 2012 created high demands for homes and limited supply due to which the prices of the houses went up leading to higher houses prices.2008 witnessed a time of crisis, and during that time the banks were misery enough to show almost no flexibility and added down payment requirements to the borrowing or leasing. That was indirectly yet again impossible for customers to afford again because at that time the prices were high throughout which indirectly increased the down payments which people found difficult to affords. One advantage to people now is that the mortgage rates have decreased thus reducing the price pain. Statistics reveal that mortgage rates now are 3.90 % whereas a couple of years ago it was 3.40%.
Renters are also starting to see some relief. Due to rise in home property, people have turned their necks towards rental market which has caused rental prices to decrease. Since the income has increased so now, it is more convenient for people to afford the houses at rents.