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Florida Still Desirable, Now Affordable
Weakened Florida property prices and lower mortgage rates could be a blessing for those with steady incomes and good credit. If double-digit jumps in real estate prices kept you from buying a home in the last few years, you may have your chance now. While Florida cities such as Miami, Palm Beach, Naples, and Fort Lauderdale dominate "worst real estate market" lists, Florida itself remains a desirable place to live. Its culture, weather, and recreational opportunities are still there, waiting for new residents who now have the opportunity to buy. And don't forget to take advantage of first-time buyers' incentives such as the federal $7,500 tax credit, increased access to FHA mortgages, and help from motivated sellers and banks.

Refinancing in Florida Not Easy
For those who bought Florida property in recent years, it's a less rosy picture. Lower real estate values and changes to federal law mean Florida mortgage companies will in many cases have to lower their FHA loan limits. The recent erosion of home equity has also made it more difficult for those refinancing from adjustable to fixed rate mortgages. Finally, Florida mortgage lenders are imposing more restrictive guidelines on real estate appraisers and carefully scrutinizing property values in markets deemed to be "declining."

Florida: More than Miami
Change may be on the horizon, however, and that's good news for those buying and selling. According to Yahoo Real Estate, a recent snapshot of Florida home prices showed increases across the board--existing homes, new homes, and foreclosure homes. Low interest rates should help dry up the inventory, stabilize prices, and keep the dream alive for those purchasing or refinancing homes in Florida.