According to real estate experts, unlike a decade and a half ago, Florida has limited inventory versus an oversupply of homes -- which real estate economist Ken Johnson, with Florida Atlantic University, says will lead to a drawn-out affordability crisis.
But experts say bubble won’t burst like it did in 2008 recession, especially in growing cities like Jacksonville– Economists with the Federal Reserve issued an unsettling warning to millions of potential homebuyers, cautioning that the real estate market is showing signs of a brewing U.S. housing bubble.
As Northeast Florida home prices continue to soar, some buyers are so desperate that they are willing to forgo a house inspection. But according to real estate experts, unlike a decade and a half ago, Florida has limited inventory versus an oversupply of homes -- which real estate economist Ken Johnson, with Florida Atlantic University, says will lead to a drawn-out affordability crisis.“I think what we will talk about this bubble, if you will, and I use that term to emphasize that there’s going to be some pain involved in this,” Johnson said.
“Too many times people interpret that word ‘bubble bust,’ just what happened back in ‘08,” said Northeast Florida Association of Realtors President Mark Rosener. “And I really don’t see any signs that, that is happening.”