True recovery to a stable real estate market is a long way off and short sales will be perpetual for many years to come unless lenders create their own version of HARP.
Inventory is down increasing competition for housing, fewer days on the market, Under Contract Sales are up for the first time in 5 years along with number of Solds being greater AND depending on your neighborhood â€“ for the first time in 5 years, we seen prices increase slightly.
While working with buyers during the past 3 weeks, I have experienced multiple offers again (haven't seen that for a while) and there is a "sense of urgency" and excitement in the air once again.
So, if you were waiting for the "bottom" - - you missed it - it came and it's going fast. Get out there - come pick out your next home while interest rates are in your favor and choices are still abundant. And as always â€“ the â€œbestâ€ properties are going fast!
With interest rates extremely low, banks holding off on foreclosures/lack of REO's and inventories incredibly low, it has caused prices to rise ~16% from last year. However, with unemployment right around ~11% (Real unemployment ~20%) and ~15% of folks WITH mortgages who haven't made a payment in 3 or more months; our prediction is that the Great Recession isn't close to being over for the housing market in California.
Super luxury is experiencing a real boom - in houses and condos both.
Lower end luxury is softer - properties stay on the market longer, and they sell only if the inventory
dries up in the immediate area, or after a couple of price reductions.
New condo boom has started - which is a threat to the older construction condo sellers.
I hope that those condo owners that need to sell are in tune with this major change in the market place.
Remarkable price increases in condo sales of over 30% for the past 2 years are prevailing in near the beaches areas, downtown, Brickell and those areas that are quickly becoming the next big thing.
Rentals are going up - with many homeowners loosing their homes in foreclosures and short sales,
the need for housing is very high. Many developers are rushing to build affordable housing.
Investors are enjoying lowest vacancy rates possible - with rentals going within a week or two.
Foreclosures are more common again - but banks are not pricing them below the market.
New animal out there - an overpriced foreclosure (priced this way by agents out of the area).
Short sale vacation rentals are doing very well (and so is tourism).
Yes, prices are coming up in most areas. Yet, there are still many areas where the prices are lower than 2 years ago (and that's when the recovery started near the beach and downtown Miami areas).
There are many areas where the crime rates are higher than 2-3 years ago, and homeowners are loosing their equity because of that (hard to sell when your area went down in buyer's perception).
The inventory is shrinking. However, unless a property is priced reasonably, buyers are not jumping
in joy to buy it. The market is regulating itself, and I'm kind of liking what I'm seeing.
So - the recovery in South Florida is happening.
A patchy one, but ongoing...
Hope this helps,
Beachfront Realty, Inc.
The median home price in Orange County in Jan. 2012 was $108,000. The median home price in Orange County in Jan of 2013 is $128,000 that is over an 18% increase!!! With the new FHA mortgage changes beginning April 1, I suspect March is going to be a very busy month.
Keller Williams Classic III Realty
Phil Mount, MBA, GRI, ePro
Front Street Brokers
Better Homes and Gardens Real Estate