Fear of Monthly Payments is Biggest Florida Home Loan Obstacle, Survey Finds
As housing affordability remains an issue throughout the Florida home loan world, one important question arises:
What is the main factor that causes a potential buyer to determine a house is beyond his means?
Based on fourth annual National Housing Opportunity Pulse - conducted by the National Association of Realtors - Americans overwhelmingly believe that it is NOT the purchase price of homes that provide an obstacle to home ownership, rather it is the monthly bills from their Florida home loans.
The costs of home ownership
Furthermore, this concern is not necessarily based on the Florida mortgage loan payment itself, but on the ancillary costs associated with home ownership. By a two-to-one margin Americans think that high monthly payments, rather than down payments, are the greatest obstacle to buying a home.
Surprisingly, rising property taxes were cited by 34 percent of survey respondents as the leading cost concern associated with owning a home. The second most frequently cited concern - mentioned by 28 percent of those surveyed - was the growing cost of energy. Only 14 percent said that increasing Florida home loan rates would deter them from becoming homeowners.
The study said that in 2003 the average monthly mortgage payment, including principal and interest, was $840. By April 2005, however, that figure had risen to $1,015, an increase of 23.8 percent. One year later that figure had risen another 11.5 to $1,132. These are painful increases but they are just the beginning, as many experts fear Florida home loans may continue to grow out of the reach of lower-income families.
NAR found that more than 42 percent of Americans ranked the lack of affordable Florida housing in their communities as one of their top three concerns. Nearly one-third are concerned they will never be able to buy a home and 58 percent feel that the cost of housing is becoming a drag on their local economy.
The concern about affordable housing is spilling over into rental property. As homes sales cool, rents rates sky-rocket; sixty eight percent of survey respondents feel that even renting a home is becoming too difficult for local families. As a response to this, a remarkable 80 percent of Americans are now willing to support more affordable homes in their local communities and 68 percent would be more likely to vote for candidates who pledged to make housing more affordable.
This is becoming a hot button issue, especially as election season nears. Even though certain residents are confident about the future of their Florida home loan market, politicians in the area would be well-served to keep this topic atop their priority list.
