CNN Money reports that housing in the Central Florida Market is up by 75% as compared to last year. This is attributed to low inventory levels. So people are buying new homes based on floor plans before a model home can be built. Even in neighborhoods that had been hit hard with foreclosures, the inventory levels have dropped to a point where new construction is beginning to take off. Alex Vastardis of Caldwell Banker cited one community which had over one hundred homes in Foreclosure at one point and now there are only five homes available for sale. He also pointed out the current trend is toward smaller neighborhoods where the builder can come in and build the neighborhood out and move on. See the entire video at CNN Money
This activity is fueled in part by the continuation of record low interest rates. FHA loans are extremely popular again as they are available in metropolitan areas and only require 3.5% down payment. FHA loans are an excellent way to get into a new home and lock in a low fixed interest rate.
For those that really like a bargain, building a home in a community that began before the Housing Crisis hit and still has home sites available can be a steal. Many times these often overlooked locations are where the best values can be found. They are frequently in outlying areas but given that the lot value has typically been written off the new homes available in these communities present an opportunity for those looking for a bargain. The new homes are more energy efficient, are built to the newer wind load standards but are available for tens of thousands less than comparable homes closer to major metropolitan area. Additionally, many of these outlying communities qualify for USDA financing which provides 100% financing so there is no down payment required. This is the first time in many years where the housing market is back in equilibrium. Communities close in to the city center are thriving and outlying communities offer excellent savings opportunities for those willing to live a few miles out.
If you have been waiting for the market to improve before making your move. Take a look at where you live and tour the models in a community where you would like to live. Then ask yourself, What am I waiting for?