South Florida’s housing market is recovering from the historic bust – but at a slow pace.
October was another strong month for home sales, continuing a year-long trend, although prices fell in both Broward and Palm Beach counties.
Broward saw 992 existing homes trade hands last month, a 16 percent increase from a year ago, the Florida Realtors said Monday. In Palm Beach County, sales jumped 27 percent to 918. Miami-Dade County led the state’s 19 metro areas in sales with a 41 percent increase.
But Broward’s median price, stable for much of 2011, declined 7 percent in October from a year ago to $181,300. Palm Beach County’s median was $184,900, off 16 percent from October 2010.
“The market’s not falling apart anymore, but I don’t think we’ll see prices increase significantly anytime soon,” said Mike Larson, a housing analyst for Weiss Research in Jupiter.
Larson said recent housing trends are encouraging, although they could prove to be a “false dawn” if bank-owned properties flood the market.
Foreclosures have slowed in the past year as banks reviewed possible paperwork errors, but lenders are starting to resolve those issues and file more cases. A glut of foreclosures likely would keep prices depressed across South Florida.
Still, an increase in foreclosed homes wouldn’t necessarily be a bad thing, said Chip Rowand, assistant district sales manager with the Keyes Co. in Weston.
The numbers of homes and condominiums for sale have declined dramatically from two years ago, and first-time buyers and investors are competing for the dwindling supply, Rowand said.
“There are enough buyers to absorb a significant portion of the distressed inventory if it comes on gradually,” he said.
Sales of existing condominiums rose in both counties last month, according to the Orlando-based Realtors’ group. Broward’s median condo price increased 25 percent to $78,100, but Palm Beach County’s median fell 9 percent to $72,100.
The median means half the properties sold for more and half for less.
Some analysts and real estate agents say the median price of homes sold in a month isn’t as accurate a measure of home values, like the Standard & Poor’s/Case-Shiller Home Price Index. That tracks the price of the same property over time.
Nationally, home sales have been mostly flat this year, but activity has been more robust in South Florida. International investors, particularly those from Canada and Brazil, are drawn to the region’s affordable prices.
“A lot of people are delighted to own a second home here,” said Amanda Wilson, an agent for Esslinger Wooten Maxwell in Fort Lauderdale.
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Photo Courtesy: Reuters
