Fort Lauderdale Real Estate News | Fort Lauderdale Market Bottom Report
Florida Home Prices Hit Soft Bottom Earlier Than Projected
A new home sales calculation indicates that Florida single family home, condominiums and Florida townhome prices have reached a bottom in 2009 which is a year earlier than what real estate specialists projected as the low point. The member of the Henri Frank Group at Remax Preferred, a Realtor group that sells residential South Florida properties. Our group had seen the South Florida Real Estate bottom started in late 2008, early 2009. We also had seen it vary from area to area. For example, Weston, Miami Beach, Wilton Manors and Victoria Park for example, had seen the Real Estate bottom earlier than other. The areas also seen the recovery of single family homes, condominiums and townhome selling prices rise than those in other areas.
The new measure for the bottom of the market was developed by the Chief Economist from the Florida Realtors firm. It shares commonalities with the well-known Standard & Poor’s/Case-Shiller price index but is expected to offer more precise idea of state sales prices. This economist stated that he was amazed that the index identified 2009 as the bottom for Florida real estate but shared that 2009 was the period when investors started paying attention to Florida real estate prices. The Florida Realtors representative has been working on the index for more than a year and states that the stagnant prices of condominiums in Florida, townhomes in Florida and single family homes in Florida is better than the drastic increase and decline.
Based on the new index, home sale prices in the Florida real estate market had drastically increased 152% from January 2000 up to the height of the market in November 2006. From November 2006 until June 2009, sales prices in Florida suffered a historical decline of 43% from the peak market prices. Realtors in Florida have criticized the existing method of analyzing monthly average home sales prices and stated that it doesn’t provide an accurate measurement of rising and declining home values.
The median home price is based on half of the properties sold above the price and half sold below the price. This measure can swayed if a large amount of distressed homes or luxury properties are sold in any given month. Florida’s new measure is recognized as a “repeat sales index”. This index integrates the Florida Department of Revenue data with the prices of the same homes sold over time. This new measure is anticipated to be released quarterly but due to the delay in data from some states, the first index covers up to August 2011.
Similar to the Case-Shiller price index, the Florida home price index calculates sales in comparison to prices in January 2000 back when the index was set at 100. Florida data included in the Case-Shiller’s index is based on Tampa and South Florida which incorporates Broward, Palm Beach, and Miami-Dade counties.
A representative from the National Association of Realtors states that he’s not mindful of another state that has a dedicated price index. The state of California has its own “affordability index” which measures the percentage of all households that have the means to buy a single-family home but all sales prices are calculated as a median. The index is thought to be more precise although consumers may fancy median sales prices since they report a definite amount.
Experts from Palm Beach County say that the state index doesn’t cover regional details. A spokesperson from Platinum Properties which has multiple Florida locations in Juno Beach, Jupiter, and Stuart indicated that home sale prices for South Florida likely hit their bottom after 2009. This representative also stated that the 2009 bottom was probably accurate for Florida as a whole but when broken down into regions, things might be a bit different. The Henri Frank Group concurs that the bottom is geographical.
Economists from Zillow stated that South Florida sales prices hit bottom near the end of 2011. The Case-Shiller’s index indicates that Palm Beach, Broward, and Miami-Dade counties hit bottom in April 2011. A real estate professor from the Florida International University also confirms that 2011 was the bottom for Florida real estate market. Perhaps it is Florida in general, but South Florida experienced stablization in prices of single family homes, condominiums and townhomes in late 2009 and into 2009 and very slight rises in 2010. In 2011 the prices of homes in regions like Wilton Manors and Weston grew stronger and continue to do so. Remembering Weston was the first zip code in the State of Florida, a Broward County municipality of mainly single family home communities, however, condominiums and townhome communities also exist, Weston, Florida was the first to see rises in median prices of South Florida properties sold.
This data is established to better help the buyers, sellers and investors of the Henri Frank Group at Remax Preferred better understand the Fort Lauderdale Real Estate Market, Miami Beach Real Estate Market, Wilton Manors Real Estate Market, Boca Raton Real Estate Market and markets throughout Miami-Dade, Palm Beach and Broward counties.
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