In the year 1920 because of the climate, Florida became a very popular destination in all over United States. With a rapid growth in popularity, people started investing money buying homes which increased the demand of real estate. Eventually, the market saw an increase in the number of people who wished to make use of the situation. They started charging double and triple the normal price of a land. Many also started pumping huge amount of money into real estate market and later 90% of the population in Florida was either real estate agent or real estate investor. Unfortunately, the rules are the same everywhere whether in stock or real estate. If you buy a thing at a certain price you would always like to sell it at a higher amount in order to make profit out of it. This brought a huge rise in the land price. As the price increased, the market saw a fall in demand and finally the speculators realized that there should be limit to everything, even the boom. There was also a time when there were more sellers and very few buyers.
Now, recovery in Florida real estate market is the most exciting story. Media and reporters are keeping an eye on the movement. Statewide the sector saw a 20% fall in home price in the year 2008 when compared to the price in 2007. Today, the price of lands in the submarkets is still at its peak. The home prices are also increasing by 1%- 2% every month. The volume of home sales is again rising and now it is the best time for you buy your dream house in Florida. The builders report that there is a 20-25% growth in the sales traffic. Mortgage is still at the lowest, but the state and the other local housing program available help the buyers in making big purchase. The good news is that many foreign buyers are also coming in and making investments in the sector. Large amount of cash flow through foreign investment has also helped the market to recover from the downfall. As per the judicial rule foreclosure by banks take a long time in Florida. Today the banks are slowly making the procedure easy and thus more number of people are interested in making investment in the real estate and thus the sector today has seen a rise in demand.