Florida Real Estate Showing Signs of Life

Florida was one of the states where home prices not only became stupid, they became excessively stupid.

But now, after incurring a brutal bear market for the past three years, real estate in Florida is beginning to show signs of life. Even though prices have been falling, unit sales are rising.

Florida’s existing home sales rose in February, making it the sixth consecutive month that sales activity showed increases in the year-to-year comparison, [emphasis added] according to the latest housing data released by the Florida Association of Realtors® (FAR). February’s statewide sales also increased over January’s figures in both the existing home and existing condo markets.

Existing home sales rose 20 percent last month with a total of 9,858 homes sold statewide compared to 8,181 homes sold in February 2008, according to FAR. February’s statewide existing home sales were 16.7 percent higher than January’s statewide sales.

Florida Realtors also reported a 15 percent gain in statewide sales of existing condominiums in February, continuing a trend in recent months for higher statewide sales of both the existing home and existing condo markets compared to year-ago levels. Statewide existing condo sales last month increased 25.1 percent over the total units sold in January.

Markets are clearing at lower prices as inventory gets blown out by banks no longer willing to hold inventory on their books and sellers capitulate knowing that they will not get the prices they once thought their homes were worth.

This is what happens at or near the bottom of a market, especially in one that has seen a brutal price correction to the point that home prices become attractive, as they are now in Florida.

Comments

[herbert hoover:]

If you truly believe that the Florida market has hit bottom, go onto the Craigslist real estate section. They are giving properties away. Real estate prices in FL have only one way to go --- and it's not up.

Mar 30 01:53 PM

[3 degrees o...:]

I am trying to buy a house in Estero FL and at the development I am interested in, the sellers are still asking 20% more then the prices they paid at the peak in Apr 2007, I do not know what they are smoking, but they are all holding out for some delusional price. I guess I will just keep waiting for prices to get down to realistic levels.

Mar 30 02:03 PM

[Tricky:]

I have a good friend at a vulture fund who spends all his time in South Florida. According to him, we ain't "there" yet.

Mar 30 02:06 PM

[Obi-Wan:]

Depends on where in Florida you are talking. Miami is still reeling. Tampa and Sarasota leveling off. Jacksonville showing a slight rebound. We used the opportunity ourselves to get a bargain condo on the Gulf Coast. If you have funds and patience, the opportunity is there. Do your homework!

Mar 31 08:50 AM

[axelrod608:]

>> "home sales rose 20 percent last month" >>

Every time I see something like this I am reminded of the book, HOW TO LIE WITH STATISTICS. In my neighborhood, there were no "for sale" signs up until last month. There are now over a dozen.

Yes, banks are making a lot of short sales. They do not want to be in the property management business. But more properties are coming on the market than are being sold. It's getting worse, not better. And prices are still falling.

A few miles up the road in Port St Lucie, most homes are selling for half or less of 2005 prices. If this is good news I sure don't want to hear the bad news.

Mar 31 10:01 AM

[ain't no fo...:]

I was visiting friends over in Ft Myers this weekend (I'm in St Auggie) and there are some incredible discounts showing up in foreclosures as well as the general market, including plenty of sub 100K condos that would have been 200K+ just two years ago when owners REALLY were in denial.

What amazed me was that so many people I talked to over there were finally talking about buying, thinking they didn't want to miss the bottom.



On Mar 30 02:03 PM 3 Degrees of Separation wrote:

> I am trying to buy a house in Estero FL and at the development I
> am interested in, the sellers are still asking 20% more then the
> prices they paid at the peak in Apr 2007, I do not know what they
> are smoking, but they are all holding out for some delusional price.
> I guess I will just keep waiting for prices to get down to realistic
> levels.

Mar 31 12:24 PM

[Riley Brock:]

The housing bubble is clearly in a bull trap. Watch this 13 minute video and you will see what is coming (it is not good).

Mortgage Meltdown

www.cbsnews.com/video/...

Monthly Mortgage Rate Resets 2007-2016 Chart

consumerist.com/340334...

Main Stages In A Bubble

www.moneyweek.com/inve.../~/media/733B1CBD37D84...

Mar 31 01:20 PM

[j_remington:]

The next wave of ARM resets will crush the real estate mkt.

Mar 31 02:15 PM

[j_remington:]

Many areas in Texas (Dallas, Houston, Austin) are lagging the rest of the nation. Layoffs have just begun to filter through the tech and energy sectors. Many more homes are about to be foreclosed upon in 2009 and 2010.

I have not come across any home buyers that would qualify as first time home buyers at the auctions.

Investors are buying foreclosures. Some are overpaying due to their lack of experience. The temporary uptick in prices will soon dissipate as investors become fully spent.

Mar 31 02:36 PM

[apvbguy:]

as you all should know all real estate markets are local, and in FLA as elsewhere there are pockets of strength and places where you can't give homes away.
Look for places like Miami Beach, Naples, Jupiter and some other quality places to firm up while other over built areas that off the beaten path to remain very weak.
It's going to get back to normal and that means location x3 will be a key as to what will sell and what won't. So the moral to the story is that quality and location will determine what will rebound and what may never come back. The days of build it and they will buy are obviously gone.

Apr 02 07:37 AM