Insight

The Search for Affordable Homes

The Search for Affordable Homes

Roy D. Oppenheim

Roy D. Oppenheim

November 3, 2021 05:23 PM

Many prospective homebuyers are waiting for a correction in the housing market to purchase a home at a bargain comparable to the 2008 market crash. However, there are different factors now. The housing bubble 15 years ago was largely driven by questionable lending policies that led to a boom in new construction and a speculative frenzy. Now, prices are high as before, but low interest rates and lack of supply due to the difficulty in part of getting supplies are an issue as well as less inventory due to the lingering impact of the COVID crisis.

Where Is the Intense Housing Demand Coming From?

The demographics of homeowners looking to purchase a home today include people who are relocating from the Northeast and the West Coast for tax reasons, millennials wishing to purchase their first homes, and people seeking more space as remote work continues.

How Is the Real Estate Market of 2008 Different from Now?

Unlike the Great Recession, today’s lending practices are more stringent, requiring homeowners to have a bigger down payment when purchasing a home. According to David Druey, Centennial Bank Florida Regional President, “During the Great Recession, we had mortgage companies and banks financing 100 percent of the purchase price and closing costs. We created our own crisis.”

Aside from stricter lending policies, 60 percent of homebuyers who finance with a mortgage said that low interest rates played a role in their decision to purchase a home. According to Bankrate.com, rates for a 30-year fixed mortgage stand at 3.03 percent while rates for a fixed 15 years are 2.03, as of September 1, 2021.

Additionally, the number of homes on the market now is dramatically different. In 2008, there was an oversupply; now, the number of homes listed have significantly decreased. Listings for homes plunged 61 percent in Palm Beach County compared to 4 years ago; Broward County listings decreased 46 percent, while in Miami-Dade was similar at 39 percent.

While home prices in 2021 are higher than in previous years, they have not reached the height of home prices during the 2008 crash. During that period, homes were overvalued by almost 60 percent; now, homes in south Florida are overvalued by about 13 percent.

What May We Expect?

Source: Redfin

Some economists claim that the shortages of homes for sale coupled with low interest rates and relocations to south Florida from out-of-state residents should keep us from sustaining a housing crisis that led to the Great Recession of 2008. While experts believe a correction in home prices may not happen until sometime next year, changes in the economy will inevitably affect the housing market.

While there is no magic ball to accurately predict the future, we had indicated in an earlier blog that we all may agree that the frenzied housing market is nearing heights that are reminiscent of the mid-2000s. Aside from low interest rates, supply shortage, and demographic shifts, we all recognize that the pandemic has added a layer of complexity to the mix, and the inevitable likely end of the eviction and foreclosure moratoria adds more challenges to the housing market.

Should you have a real estate legal issue, our team at Oppenheim Law may be reached at 954-384-6114. Should you need assistance with a real estate purchase or sale, our title company, Weston Title & Escrow, Inc. can be reached at 954-384-6168.

Roy Oppenheim

From The Trenches

originally posted at: https://southfloridalawblog.com/the-search-for-affordable-homes/

Related Articles

Client Service in Real Estate Law: Identifying Attorneys Who Truly Care


by Best Lawyers

What is client service in real estate law, and why is it important? Learn more about the value a real estate lawyer who emphasizes client service can provide.

Two unseen individuals shake hands with miniature house models in background

The Role of Title Insurance in Real Estate Transactions


by Best Lawyers

Title insurance can provide benefits, protection and peace of mind in a real estate transaction, which can often be complex. Best Lawyers take a closer look.

Individual signing a document with house keys in background

Real Estate Attorney Role in Home Closing: Dallas, Texas


by Best Lawyers

Learn about the important role of a real estate attorney in a Dallas home closing. Discover if you need one, what they do and how much they cost.

Key with house keychain in door lock

Announcing the 2022 Best Lawyers: Real Estate and Infrastructure Publication


by Best Lawyers

Featuring the top legal talent from The Best Lawyers in America, Best Lawyers: Ones to Watch in America and "Lawyer of the Year" recipients for real estate and infrastructure as well as thought leadership from some of the nation's top lawyers.

Real Estate and Infrastructure Publication

Jane Snoddy Smith, Austin, TX "Lawyer of the Year" for Litigation – Real Estate


by Tess Congo

Highlighting Jane Snoddy Smith of Norton Rose Fulbright and her achievements in litigation – real estate.

Jane Snoddy Smith "LOTY"

Trending Articles

Introducing the 2026 Best Lawyers Awards in Australia, Japan, New Zealand and Singapore


by Jennifer Verta

This year’s awards reflect the strength of the Best Lawyers network and its role in elevating legal talent worldwide.

2026 Best Lawyers Awards in Australia, Japan, New Zealand and Singapore

Revealing the 2026 Best Lawyers Awards in Germany, France, Switzerland and Austria


by Jamilla Tabbara

These honors underscore the reach of the Best Lawyers network and its focus on top legal talent.

map of Germany, France, Switzerland and Austria

Effective Communication: A Conversation with Jefferson Fisher


by Jamilla Tabbara

The power of effective communication beyond the law.

 Image of Jefferson Fisher and Phillip Greer engaged in a conversation about effective communication

The 2025 Legal Outlook Survey Results Are In


by Jennifer Verta

Discover what Best Lawyers honorees see ahead for the legal industry.

Person standing at a crossroads with multiple intersecting paths and a signpost.

The Best Lawyers Network: Global Recognition with Long-term Value


by Jamilla Tabbara

Learn how Best Lawyers' peer-review process helps recognized lawyers attract more clients and referral opportunities.

Lawyers networking

Jefferson Fisher: The Secrets to Influential Legal Marketing


by Jennifer Verta

How lawyers can apply Jefferson Fisher’s communication and marketing strategies to build trust, attract clients and grow their practice.

Portrait of Jefferson Fisher a legal marketing expert

Is Your Law Firm’s Website Driving Clients Away?


by Jamilla Tabbara

Identify key website issues that may be affecting client engagement and retention.

Phone displaying 'This site cannot be reached' message

A Guide to Workers' Compensation Law for 2025 and Beyond


by Bryan Driscoll

A woman with a laptop screen reflected in her glasses

Best Lawyers Launches CMO Advisory Board


by Jamilla Tabbara

Strategic counsel from legal marketing’s most experienced voices.

Group photo of Best Lawyers CMO Advisory Board members

Common Law Firm Landing Page Problems to Address


by Jamilla Tabbara

Identify key issues on law firm landing pages to improve client engagement and conversion.

Laptop showing law firm landing page analytics

Changes in California Employment Law for 2025


by Laurie Villanueva

What employers need to know to ensure compliance in the coming year and beyond

A pair of hands holding a checklist featuring a generic profile picture and the state of California

New Employment Law Recognizes Extraordinary Stress Is Everyday Reality for NY Lawyers


by Bryan Driscoll

A stressed woman has her head resting on her hands above a laptop

Turn Visitors into Clients with Law Firm Website SEO That Converts


by Jamilla Tabbara

Learn how to create high-converting law firm landing pages that drive client engagement and lead generation.

Laptop screen displaying website tools to improve client conversion rates

SEO for Law Firms: Overcoming Common Challenges


by Jamilla Tabbara

Tackle common SEO challenges and take the next step with our guide, How to Make Your Law Firm Easier to Find Online.

Graphic image of a phone displaying SEO rankings, with positions 1, 2 and 3 on the screen

Best Lawyers Introduces Smithy AI


by Jamilla Tabbara

Transforming legal content creation for attorneys and firms.

Start using Smithy AI, a content tool by Best Lawyers

6 Steps to Finding the Right Keywords for Your Legal Content


by Jamilla Tabbara

Follow a practical guide to keyword research and boost your law firm’s SEO to reach more potential clients.

 letters symbolizing keywords for legal content