Article: South Florida Housing Prices Becoming Affordable Again

The Miami Herald published an article over the weekend about how south Florida property prices are now tumbling down to a level that's more affordable for many local residents. The drop in prices - due to the economic downturn and the increasing number of foreclosures in the area - means that some are now able to buy properties, having previously thought it out of reach because of their lower earnings.

The fact that houses are more affordable is great news for some - but the article does also point out that for those that are buying, mortgage lenders now impose much stricter regulations and often ask for at least 20% of the purchase price as a downpayment.

Those can meet such conditions - or, better still, those with cash - will find a large amount of choice. Even some foreclosed homes, that may have been damanged by previous residents, often don't need much spent on them to bring them back to good condition. Some consider this a fantastic time to snap up properties: "This is the only opportunity, I think for the next 30 years. There won't be another opportunity, says Eduardo Fernandez, who is investing in a couple of properties in the Little Havana area.

Falling house prices may just be a slight glimmer of hope in the story current conditions, however. The author states that most analysts predict that house prices will continue to fall. If house values fall, those that are in trouble and facing foreclosure will only find themselves in deeper trouble. The the vast number of homes on the market - greatly outstripping demand - will only cause a further fall in prices.

The article does focus on some areas in southeast Florida that may not be considered the most desirable for one reason or another but, nevertheless, does identify possible gains for those looking to buy in the region as a whole.

Article: South Florida housing prices becoming affordable again (Miami Herald, 7th February 2009)