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The cost of space: band-aid solutions cover-up the problem. They don’ heal it.

The cost of space has been increasing throughout the years—more and more are living in smaller living environments with higher prices. These living quarters, although bought with quite a huge price tag mostly follow only the minimum and not the optimum and sometimes don’t even conform with the codes set by their respective countries.

Typical living residences in the major urban areas of most countries are set to a smaller scale. They are typically studio type apartments with all the amenities stuffed into the minimum space requirement for a condominium room set by the codes of their respective countries – take note that these are the minimum livable requirements and not necessarily the most comfortable. But it doesn’t end there, numerous condominium building owners are thinking of ways to get the most of the land they have bought and thus some resolve to numerous tactics to reduce the money they spend on the rooms by somehow cheating the space, such as including the “AC balcony” to create a 22 sqm label on a 18 sqm unit, or subdividing the rooms into smaller units such a the cage houses in Hong Kong.

Space-saving furniture has been introduced to help elevate the comfort of living in these small environments –space-saving beds (best beds 2019), movable furniture, convertible sofas, and numerous hybrid furniture have been increasing in popularity. Although space-saving furniture do provide smart alternatives to make the most of the space you have, it is not the solution to the main problem of the rising prices in the real estate industry– they merely serve as ban-aid solutions.

The increasing prices have resulted to scaling down for others and the loss of homes for some families, the prevalence of squatters and small illegal housing homes paid with high prices have been increasing in highly dense urban cities. Hong Kong’s cage rooms is an example of extreme scaling down practices that compromise comfort in order to make amends with the increasing real estate prices – scaling down per-se is a good thing, and making use of the space effectively is also great, but scaling down to the point of compromising comfort because of something you can’t control like increasing prices is not a good manifestation to how the country is dealing with the main problem of the increasing prices of land itself—reforming the law is the solution, its time to take a step back and observe, for whose interest is the law actually created for? Is it for the people? Or the pockets of the one’s running the law?

Buying or Building a Home in Florida: Strike Now While Mortgage Interest Rates are Going Down

If you are planning to build or buy a home in Florida, now is the best time to do so. Online real estate leader Zillow reports that mortgage interest rates in Florida have gone down by several points. As of May 21, 2019, Florida mortgage interest rate dropped to 4.08%, 4 basis points lower than last week’s 4.12% average rate.

Although a temporary rise in mortgage rates transpired in December and January, rates have reverted to the previous low of slightly above 4%. As a result, spikes in retail estate sales occurred in February and March, 2019.

Chief Economist Dr. Brad O’Connor of the Florida Realtors remarked that the trend is likely to continue up to the second quarter, which is why it is high time for Florida folks to realize that

.. “this might be their last chance to upgrade, downsize or buy their first home while rates are near historical lows.”

However, those seeking to build a single-family housing are advised to apply caution in light of affordability concerns. Growing house demands can also spur costs of construction, which builders have to manage, in order to stay within the current prices of home-building contracts.

Still, Dr. O’Connor projects that as real estate inventory levels across varying price tiers continue to surge, price growth in 2019 will not be sharper than they were in recent years. Based on the 2019 first quarter performance, the trend in median time, or the length of time it takes to close a sales contract for single family homes is 51 days, while condominium or townhouse units take slightly longer at 53 days.

Slow Rather than Drastic Peak in Real Estate Prices is Expected

According to figures recently released by Florida Realtors, the real estate market in the Tampa Bay area is still running on an erratic course. Single-family homes still have the biggest market share, where Pinellas is the only county experiencing price growth. Prices of single-family homes in Pasco and Hillsborough dropped, while remaining flat in Hernando.

Florida Realtors report that selling of Tampa Bay properties is taking longer than it took last year. Moreover recent sellers are reportedly receiving less than their asking price compared to what they got in April 2018.

Skylar Olsen Online, Director of Economic Research at real estate giant Zillow, explains that currently, price corrections are taking place after years of home value growth occurring at a rate that is beyond the pace of income growth.