Realtor: Florida Housing Market to “Correct Itself”
More Polk County home buyers are sitting on the fence these days rather than hopping into a new yard and ownership.
The market just isn’t what it was two years ago.
Arthur Mattson is all too aware of the situation as the president of the Lakeland Association of Realtors at the end of this year.
The Lakeland Ledger recently spoke with the Florida real estate agent, who owns Lakeland Realty, about his views on the local market and its future.
Q. While most experts say the Florida housing market boom won’t return for at least another year, Gov. Charlie Crist predicted at the FAR convention that another boom will happen following next year’s January 29 vote on the state’s property tax amendment. Is this a likely scenario for Polk County home owners and real estate agents?
A. I share Crist’s optimism regarding the future of Florida’s real estate market. However, I do not believe there will be another surge similar to the one we witnessed in 2004 and 2005 in the near future. While we work to solve our insurance and tax issues, consumer confidence will rebound. As buyers take advantage of the inventory, the market will correct itself.
Q. The amendment would give homeowners the choice to keep their Save Our Homes exemptions or choose the new plan that would take 75 percent off the first $200,000 of a home’s value and 15 percent off the next $300,000. What could this mean for Polk residents and Realtors?
A. It means guaranteed confusion. I know our legislators worked hard under pressure to create a property tax plan during the session, but we need options the public understands. After discussing the upcoming tax reform vote with professionals in the real estate industry, I discovered that very few understood the amendment and the two homestead exemption choices. How does this fare for the general public? Our tax crisis is too important to the health of the state for there to be any misunderstandings.
Q. What do you think sales and construction statistics need to look like to be considered a healthy Florida housing market again?
A. What is healthy? From an economic standpoint, we need a balance between buyers and sellers, supply should equal demand.
Q. On top of high Florida mortgage costs, there is the large matter of Florida’s insurance problems, which are sharing blame for the sluggish market. In your opinion, to what extent do insurance woes impact the market?
A. While there is no doubt increased insurance rates have a negative impact on the real estate market, it is just one piece of the puzzle. Higher premiums and property taxes as well as the fall out of bad credit mortgage market have all contributed to the slow market.
