The Central Florida Real Estate Market has been on a roller coaster ride over the past five years. Having been working as a real estate appraiser for these past five years I have seen firsthand home prices soar to ridiculous amounts. In less than a year, the appreciation is some areas made homes previously affordable to some family's virtually impossible to afford.
I will be the first to tell you that, until recently, i wasn't complaining. With the rise in home prices, meant the increase in business, leading to the increase in my income. Now work is extremely slow, hence the fact I'm here blogging and not out on a job.
I believe alot of the problem was due to creative financing, investors and influx of new construction in the area.
- Lenders probably caused a majority of the down fall to the Central Florida Market. They pushed prospective home buyers into purchasing outside their means. Some letting customers finance 100% of their future home. Or should I say, probably now previous foreclosed home.
- Investors didn't really affect the market toward the end of the downfall of market. When home prices where soaring out of control investors bought up homes and turned right around selling them for up to a 300% profit. Not until late 2006 when investors where full of inventory and stuck in a falling market did they unload the stock at prices below the market. This in turn pushed home prices farther down.
- New construction put out homes so quick causing a surplus which drove down prices.
