It has been awhile since the real estate market has experienced the downturn as a result of the recession. Many have lost their jobs giving way to mortgages left unpaid as other priorities were given more importance such as food and health. Foreclosures and non-selling homes were in the ultimate high since people want to keep their money within wraps. But the market has seen to slowly rise up in the recent months. Lee County in southwest Florida has seen home sales increasing in the past year. Reports have shown that even though cautious, buyers still believe that the real estate is a form of investment.
Decrease In Foreclosures
According to the Southwest Florida Real Estate Investment Association director Jeff Tumbarello, foreclosures have dropped. In February 2012, the figure was at 636. However, in the same month of 2013 it has lowered down to 530 homes. This is still far from the predicted new normal of foreclosures between 325 and 475 but there is an improvement nevertheless. The decrease is also seen because buyers from the last four years were mostly made in cash. In addition, the creditors between 2008-2012 were more careful and stringent in approving mortgages. Thus, about 65 percent of homes were paid in cash without any need for financing. It goes to show that in times of economic low, the smart investors are coming in.
Increase In Issuance Of Single-Family Home Permits
The lesser number of foreclosures was not the only positive factor for the Lee County real estate market. In the comparative reports of single-family home permits issued from February 2012 and February 2013, there is an increased digit of such permits. February 2012 only shows 47 permits issued while February 2013 has a total of 70. This has been the highest since October 2007 when the crisis began.
Buyers Are Not Holding Back But Still Cautious
Real estate experts are definitely seeing better activity in the housing market but not the same as before the crash. However, these are all taken in perspective since the movement is just starting to pick up. People are moving on and taking actions to move their lives forward rather continuing with the wait and see attitude. Besides, as the home prices are increasing this is an indication that the interest rates of mortgage loans will follow suit. The lack of available homes in the sought after communities and neighborhoods in Lee County and Collier county is another reason for the increasing value of what have been undervalued units. It is best to look into homes now rather than later when the market seems to get steadier with expensive prices and rates.
Real Estate Can Be A Form Of Passive Income
With all these positive news, it is high time to own a home in the Fort Myers area. Other than just having a piece of tropical paradise at your disposal anytime of the year, homes can also be rented out. The community developers in Fort Myers are aware of this and even do the arrangement themselves. All you have to do is pay for the maintenance of the home as well as yearly tax and the unit can be rented out in the agreed number of days a year. Real estate is certainly one of the markets where the return of hard-earned money is way above than just putting it in a bank account. Real estate experts do not want first time buyers to do something drastic but they also do not want those who can miss such opportunity.