Strong Economy Means Florida Housing Market Better Than Others
Troubles in the housing market are not over, although things are better in Florida than in many other areas, according to a leading economist with mortgage company Freddie Mac.
Amy Crews Cutts, deputy chief economist for Freddie Mac, said that the big problems in the industry now are the continued large supply of homes on the market and the overuse in the past year of riskier “subprime” loans.
Of those bad credit Florida home loan products, a good number of which went to buyers who shouldn’t have received mortgages in the first place.
Cutts was one of three panelists offering a generally pessimistic view of the national market to during this week’s convention of the Society of American Business Editors and Writers in Anaheim, Calif.
She said the Florida housing market is faring better than many places in the U.S. because job growth remains strong.
Especially compared with many Northeast and Midwest markets.
Panelist Emile Haddad, CIO for Miami-based home builder Lennar Corp., said his company has taken steps to adjust to market conditions.
They include cutting back by about 20 percent on its home building activity this year; trimming staff levels; renegotiating land deals; walking away from land options; and having daily calls with its senior managers around the country to discuss the latest industry and company developments.
“The up cycle went so long, a lot of people in the industry haven’t seen a down cycle before,” said Haddad, who did not discuss the Florida real estate market specifically.
Haddad said people who want to buy a house should not hesitate do so, especially if it’s for the traditional reasons — as a long-term residence for their families and financial backbone for years to come.
If you’re looking at a get-rich-quick type of investment, of course, it’s better not to take out that Florida mortgage right now. You might be a couple of years too late… of course, you’re not sweating right now as your home loan payments balloon and you can’t sell the place either.
SOURCE: Florida Today
