Despite Storm and Recession Potentials, Home Equity in Florida Continues to Rise

By Kelly Richardson
Local Lender Columnist
Oct 13, 2006
Homeownership has traditionally been a safe investment for your personal and financial future. In the state of Florida, there are a couple of factors that you may want to consider before acquiring a mortgage.

Florida homeowners must contend with the potential for storm damage as well as a looming nationwide real estate recession. Each of these considerations will have an effect on the value of your home equity in unpredictable ways--but don't abandon your dreams of home ownership! Home equity growth in Florida has remained steady despite these issues.

2005 Hurricane Disasters in Florida

• Katrina. In August 2005, Hurricane Katrina became the most expensive natural disaster in U.S. history. Although Louisiana took the brunt of the damage, Florida home equity took a hit with massive flooding in some areas.
• Rita. In September 2005, Hurricane Rita caused extensive flooding along the Florida panhandle and was responsible for nearly $16 billion in damages throughout Florida, Mississippi, Louisiana, Texas, and Arkansas.
• Wilma. In October 2005, home equity potentials took a hit from Hurricane Wilma. High winds and flooding across the southeastern portion of Florida rang up another $16 billion in damages to affected areas.

Mortgage owners in the state accept the threat of natural disasters. The national real estate recession and its effect on home equity rates in Florida are a bit tougher to predict.

Home Equity in a Recession--Still Growing

• Growth and Development. Even in the face of an impending recession, the constant expansion of Florida real estate is keeping home equity rates and attitudes steady throughout the state.
• Home Prices. The Miami Herald repots that home prices, a good indicator of the state of home equity, will see a 5% to 10% rise over the next year.

If you are a Florida homeowner, or are considering purchasing property in the state, getting the most from your home equity depends on a variety of factors. But the steadiness of the market might indicate that Florida is still a good bet for your real estate aspirations.

Sources:
Billion Dollar U.S. Weather Disasters
Refinancing In Florida
The wealth machine

About the Author
Kelly Richardson has over 15 years of creative and technical writing experience. He teaches secondary Honors-level English and writes ad copy for a variety of clients in specialized industries such as medicine and technology. Kelly holds Undergraduate and Graduate degrees in English and Education from Georgia State University. He is currently pursuing a Doctorate in Educational Policy & Leadership from Berne University & International Graduate School.