There’s no question, the Florida real estate market is on fire and properties are selling at record numbers. An article from Floridatrend.com titled “The Florida housing market is booming. Is a crash ahead?” states that the current uptick the Florida real estate market is enduring is here to stay for the foreseeable future, due to factors such as rental prices, proposed tax breaks, migration, and changes to the real estate industry, but those claims are likely a result of wishful thinking. Recessions are brought on by different causes and it’s commonly accepted that every ten years the market shifts from expansion to recession. Given the fact that the last recession was all the way back in 2009, and the global coronavirus pandemic continues to devastate the economy overall, the boom that real estate is experiencing could soon come to an end. When the pandemic first struck the United States, many were left without work. In an attempt to halt the economic implications, the government began eviction and foreclosure moratoriums, meaning those who could no longer pay their rent were allowed to stay and those who could not pay their mortgage were not foreclosed on. As beneficial as these emergency acts were, they were not a permanent solution to a bad situation. Nearly a year later, many states find themselves approaching a date where these moratoriums are set to expire. The current real estate boom is due to a lack of inventory. Experts fear that when these moratoriums end and banks are allowed to foreclose, it will lead to a flood of foreclosures on the market, comparable to the economic collapse of 2009. In addition to the disaster that looms, there are numerous landlords who will have no choice to evict their tenants, especially when they have mortgages that are now allowed to be called due. The current real estate market of Florida and much of the country is on fire, but that flame may soon be smothered as the affects coronavirus pandemic trickle down to real estate.
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