South Florida Housing Market Still Unstable, Report Finds
After a dose of optimism at the end of 2006, the Broward County housing market backpedaled to start 2007, the South Florida Sun-Sentinel reports.
The county had 458 sales of existing homes last month, down 17 percent from 552 in January 2006, the Florida Association of Realtors said Tuesday.
The median price was $364,500, off 2 percent, or $6,000, from $370,500 a year ago. The data shows clearly that the South Florida housing market remains very much unsettled, and it could be several years before the market comes close to the windfall that was 2000-2005.
“The market is trying to find a bottom, and it could take awhile,” said David Dabby, a real estate analyst in Coral Gables. “I don’t see any significant appreciation in prices for at least a few years to come.”
Condominium prices had a year-over-year decline, according to the Orlando-based Realtors’ group, which started tracking the sector early last year.
The median price in the condo market in January declined by 6 percent, or $12,300, to $199,200 from $211,500 a year ago. Condo sales, meanwhile, fell 26 percent, to 556 from 753.
Some analysts predict improvement in South Florida’s housing market in the spring as some take advantage of the buyer incentives (which include home loan payments for a year, free cars and more) available as of now. Others expect it to founder until the second half of the year and perhaps 2008.
One major reason: the growing inventory of unsold homes.
Broward County has nearly 36,000 homes and condominiums for sale, up by 24 percent from last year, according to the Keyes Co. of Miami. At the current sales pace, it would take several years to sell that inventory.
What’s more, frustrated owners who pulled homes off the market in 2006 are expected to re-list them as the spring selling season heats up. This will give prospective home mortgage applicants more choices, but keep the problem of inventory absorption front and center at the same time.
Not to mention the fact that getting a loan from a mortgage lender could become a lot harder as many have started to tighten standards, which may reduce people’s borrowing power.
But for sellers in a time crunch or in a similar bind, take notice: properly-priced properties are still selling without delay.
Marian Goodbread sold her Fort Lauderdale in 11 days. She and her husband took their agent’s advice and did a little home staging, painting with neutral colors and clearing clutter out of the house.
“The No. 1 thing, I think, is to have your house clean,” she said. “You want buyers to see where their things could go, not admire what you have.”
Across South Florida, real estate agents say they’ve seen more potential buyers in recent weeks. Whether that translates into greater numbers of Florida mortgage applications and actual closings remains to be seen.
In January, state legislators took steps that to lower homeowners insurance costs. They also seem certain to address the property-tax crunch during the legislative session beginning Tuesday.
“People’s confidence is coming back around,” said Christine Hansen, president of the Realtor Association of Greater Fort Lauderdale.
Hansen figures legislators will find a solution to soaring real estate tax bills, although she doesn’t think voters will ultimately endorse a new property tax proposal to eliminate property taxes on homesteaded properties.
SOURCE: South Florida Sun-Sentinel