The Florida housing market is of particular interest to overseas property observers like me as it remains one of the most popular places where people would like to buy a second home.
I watched from the UK how the Florida housing market collapsed. We saw Florida home owners who were not in financial difficulty suddenly become competitors in the housing market with banks. This happened when banks offered foreclosed homes at extremely low prices, Florida home owners could not compete. Our website featured homes being offered to our international audience at vastly different prices.
Bank owned 3 bed family homes with a pool for half price. The solvent home owner had no choice but to default even though they could afford their mortgage payments.
Florida home owners thought "why am I paying a mortgage of X when clearly my property is now only worth X amount" This for an international observer felt like the housing market crash was not only started by the banks for the reasons we all know but also fuelled by the banks in more ways than one.
Now a repeat of the situation is about to happen in Spain where the vast majority of property is now bank owned. Spain is one of the most popular places to buy a second home for people from the UK. We now have home owners trying to sell whilst the banks are offering similar properties at 50% lower prices and we know the banks will win.