Real Estate Properties Florida

The Florida Real Estate Property was once the most sought after property in United Stated. The beautiful climate, the second longest coastline in the United States and many tourist attractions make Florida one of the premier holiday destinations as well as a favorite place to spend a retired time. These factors lead to a sharp rise in the level of real estate sales, as more and more people decide to buy property in Sun State – either as a summer home or a place to spend future retirement.

What was the Florida real estate market’s greatest strength – the tendency of people throughout the United States to buy second homes there – caused its real estate market to suffer heavy losses during the nationwide real estate industry slowdown. Second homes were among the first properties buyers decided to forget about and there were not enough first-time home buyers to fill out the breach.

As the result the sales rate of Florida real estate properties slumped statewide, in some counties it dropped even as much as 34% between January, 2006 and January, 2007. The prices, however, remained on roughly the same level as before the market slowdown – though there are a few reports indicating that the major (15-20%) price reduction is on its way as we speak. While more and more buyers withdraw, at least temporarily, from the purchases, sellers still intend to try to sell their houses at premium prices. These two factors create the classic from of the buyer’s market.

This trend has been further strengthened by the taxation debate in a few leading Florida counties. Many potential buyers of Florida real estate properties are now holding on the transaction waiting for the decisions concerning the real estate tax cuts before making the foreclosure.

As the market signals are mixed and unclear, the situation on Florida real estate market is currently extremely hard to assess. Most experts however, expect that the Florida real estate market is now hitting the bottom and the properties’ sales rate will begin to increase starting in 2008.

Most investors and construction companies point out that Florida is still an excellent retirement location. As baby boomers come into retirement age, Florida real estate properties will increasingly be sold. While many buyers are now putting off purchases due to high property prices, they have never withdrawn from Florida as a place to move into retirement. As a result, even the smallest price drop could trigger a rise in Florida property sale rates and end the slowdown. If such a thing happens, it will return the entire Florida economy to its track in a few months, as the construction industry and consumer goods sector will meet the needs of the real estate industry and buyer needs.