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Credit Grip Loosening; So Where in Florida Should You Buy?

Wed Feb 8, 2012 on Blog

If you’re looking to buy a house in Florida this year, you’re probably still concerned about whether now is a good time to apply for a mortgage.
We’ve seen several reports this week that suggest just that.  For once, the banks stranglehold on credit is finally loosening up, according to They point to several market indicators that they say point to more stable mortgage lending standards, and have gone so far to predict that the housing crisis will end in 2012!!

For one, DSNews says banks are now lending up to 3.5 times borrower earnings, up from a low of 3.2, citing a Capital Economics report. Even better they say, is the Loan-To-Value ratio for new mortgages, which is up to 82 percent.  That means lenders are allowing new home buyers to borrow more of the appraised value of a home.

Here in Florida, CBS MarketWatch reports more people are moving into the Sunshine State than leaving it.

Why? MarketWatch cites a new report from that house hunters are flocking here because Florida has some of the lowest home prices in the country.

A Northern Trust economist has come out and said home prices have not been this attractive in 50 years. He said that banks are sitting on 1.5 trillion doallars, and lending should pick up even more in the next 2 years.

Fiserv predicts that home prices will grow between now and 2016, and Business Insider used their numbers to predict the Top 15 Housing Markets in the US based on expected growth.

Four Florida markets, Ocala, Panama City-Lynn Haven-Panama City Beach, Sebastian-Vero Beach, Lakeland-Winter Haven made Business Insider’s List.

Each has median home prices in the low 100s, and prices in each market are expected to grow at least 8 percent in the next 5 years.

Will prices start rising right away? We’re not sure, but we do know now is a great time to buy.