Floridas Housing Market Improves!

Have you ever heard that it takes the media about 3 months to report on changes in the nations economy? It's pretty much a fact. So what I am about to share with you may seem a bit naive to you right now, because we are trained to only believe something if a nightly news anchor ways in or we see it discussed on the Sunday talk shows. But based on hard facts and numbers brought to us from the National Association of REALTORS, Florida's housing market showed some good signs of strengthening in June 2008.

Most of us in the business have noted a slight improvement in our business over the past couple of months. We have not been good about sharing that with folks but it seems like that is about to change. According to a recent article from PRNNewswire: "The statewide existing-home median price in June was $205,500, up 1 percent from May's median price of $203,300. The median price of an existing condo last month was $183,700, also up 1 percent from May's figure of $181,800." The article goes on to state: "Several of Florida's metropolitan statistical areas (MSAs) reported increased sales of existing homes in June; a few MSAs also showed gains in condo sales. Realtors around the state reported heightened buyer interest in their markets, with a responding increase in telephone calls, home showings and other business activity."

This is a very good sign for future performance. NAR also feels like there will be an upswing in activity towards the end of the final quarter of 2008 and first quarter of 2009. Traditionally the summer months are more active for home buyers and sellers but I feel that activity will remain constant until the end of the year and beginning of next year when we will begin to see a return to a more normal market.

While sales activity has increased home values have eroded significantly from the same period last year. The article states the following: "Florida's median sales price for existing homes last month was $205,500; a year ago, it was $244,400 for a 16 percent decrease." Although as stated earlier median prices have increased from last month.

Based on this information I am not willing to say that we are through the fire, just yet. Congress has approved a plan to help nearly 400,000 home owners avoid foreclosure and have strengthened Fannie Mae and Freddie Mac. Anything that helps to reduce existing inventory is a great first step.

In my next article I will relay the results of an interview with a local Property Appraiser to see how existing foreclosures and short sales are affecting home values.