Everyone is talking about recession. I have decided to stop watching the news and decided to search for positive signs in the real estate market. I chose Florida a hard hit market for this search. Here is what I found:
1. For the ninth consecutive month, sales of existing homes and condos in Florida were up again in May. Statewide, existing home sales rose 16 percent in May with a total of 13,921 homes sold, up from 12,044 homes in the same period a year ago.
2. According to the Florida Association of Realtors, the statewide median sales price in May for existing homes and condos rose over the previous month. Also, year-over-year condo sales were up 21 percent to 4,839 units in May, compared to 3,998 units in May 2008.
3. In South Florida, Miami led the pack in volume with a 76 percent increase in the sale of existing single-family homes.
4. In Miami, even though the median price for an existing single-family home fell 36 percent in May 2009 when compared to the same month last year, the good news is that there is signs of improvements as the median price increased in May from April.
5. Miami led in condo sales. Once again the sale prices are lower when compared to the same month last year. The good news is that there are signs of continued improvements in the last couple of months.
6. Existing home sales in Fort Lauderdale increased 47 percent in May when compared to the same month last year. Condo sales were up 25% in the month of May when compared to the same month last year.
7. In West Palm Beach, existing home sales were up 5 percent from a year ago. Existing condo sales increased 3 percent in West Palm Beach when compared to the sales of 2008.
8. Palm Beach County housing inventory has fallen to 11 months from the 55 months in December 2007.
The question that remains in the mind of many home buyers and investors is when will we hit bottom? I think that we have hit bottom. This does not mean that we will have an immediate and dramatic increase in sales and prices. We will experience several rough months and we will travel along this bottom for a little while. I think that a buyer or investor thinking that he/she will buy a house today and see incredible home price increases in the next 12 months will suffer some disappointments. The improving sales of existing single-family homes and condos in the state of Florida, give solid signs that the prices are beginning to stabilize. A smart real estate investor doing the proper due diligence has a great opportunity to acquire great properties at bottom prices and not only cash flow, but gain on the appreciation we will experience in the years to come.
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