The Direction of the Housing Industry – Up or Down?

With the constant news of the housing industry on every media outlet, homeowners and real-estate brokers continue to wonder when the market will stabilize. According to the Miami Herald, the mortgage rates and housing prices have fallen once again. Mortgage rates dropped for a third consecutive week – a direct result of the progressively weakening economy and its influence on the financial markets. As for housing prices, the median cost of a home dropped almost 17% from last year’s median cost. This was significantly higher than the nationwide median, which dropped only 9%. The culmination of these issues leads to more insecurity and worry on the part of those involved with the housing industry.

Here are links to some of the home prices throughout Florida:

• Single-Family Homes: http://media.miamiherald.com/smedia/2008/11/18/12/REL08Q3T.source.prod_affiliate.56.pdf
• Condos: http://media.miamiherald.com/smedia/2008/11/18/12/REL08Q3CT.source.prod_affiliate.56.pdf

While these issues are not a good sign of the direction of the market, it can be said that potential home buyers with solid financial security are experiencing the best time to purchase homes right now. Homes are reaching “rock bottom prices” and are leaving brokers and banks with the incentive to provide great deals to prospective homeowners. Many experts claim that stabilizing the housing industry is important to revitalizing the American financial markets. If this approach to fixing the economy becomes a trend, the incoming presidential administration may place their funding and support behind this problem before any other issue is dealt with.