Supply Outweighs Demands in Southwest Florida Home Loan Market

As the state of the Southwest Florida home loan market has recent been in decline, the supply of homes has finally surpassed demand. For the first time sellers are lowering their asking prices.

For sale signs are everywhere and the number of new homes being built indicate that 2006 will result in price correction for the area’s property value.

“The market has to be more in balance. When you get too out of whack too fast, the market will come back and will tell you,” said Brett Ellis of RE/MAX.

As they attempt to navigate their way through the current market, sellers are now starting to reduce their initial asking price.

The number of home buyers are shrinking, and with a greater amount of homes to choose from, those who are buying can shop around until they find a price that fits, instead of jumping at the first home available.

Ellis says the ones who will be hurt the most are recent investors who were looking to flip their property for a quick profit. He adds it’s just a sign of the market balancing out, not that properties are losing value.

The influx of condos in South Florida also plays a role in this expected market correction. There’s little doubt that we’ve moved toward a buyer’s market, so those looking for an affordable Florida home loan ought to move quickly.