Falling Prices But Rising Sales In Florida

The National Association of Realtors (NAR), and their Florida State Association announced home price and sales information for the second quarter in Florida. The headline or sound bite is that prices are down even more, but sales are beginning to increase, perhaps signaling a change in market direction. We can hope they’re right, and there is some evidence to support it. Taking the tax incentives, low prices and low interest rates into account, if you have money or the ability to borrow, Florida is certainly a market that’s inviting your investment.

An article at Realtor.org, quoting Paul Sullivan at the New York Times, puts a really positive spin on the Florida market. Here are the high points:

• Greg Rand, managing partner at Better Homes and Gardens Rand Realty, says that the state’s prospects are good with 78 million baby boomers entering retirement.

Harvey E. Green, president and CEO of commercial real estate brokerage Marcus & Millchap and an investor for more than 40 years, says that the smart money is moving back into Florida.

• Ruth Trettis, a broker at Premier Properties in Naples, FL, sold nine homes in Port Royal, the city’s most affluent area, to one investor. This buyer is just holding the properties.

It seems that there are many out there perceiving bargain prices in several of the major metropolitan areas, and the NAR says “Building on a months-long trend that analysts say is a sign of improved health in the housing market, existing home sales surged by 75 percent in Miami-Dade and 35 percent in Broward.” Condo sales have also risen by 37% to 40% in some Florida areas. Investors are moving in to capture the best bargains, with bulk purchasing also taking homes off the market.

The motivation behind many foreclosures is negative equity, and the continuing slide in prices is putting more homeowners under water with their mortgages. However, as prices stabilize or even rise in some areas, foreclosure sales to bargain hunters should reduce inventory further. Sales increases are a possible wave that will cut inventory, stabilize prices, and raise some homeowners out of their under water mortgage situations. In July, condo inventories in Miami were down 33%, and down in Broward by 38%, according to MLS data.

Buying pressure certainly seems to be increasing in Florida. If it continues, we could be seeing the beginning of the end in the price declines in Florida real estate.

Holprop.com showcases thousands of international properties, from commercial and recreational properties including hotels, bars-restaurants, new build or off-plan developments to vacation homes for sale or rent.
See our latest Florida Real Estate For Sale