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Henri Frank Group Remax | Miami – Fort Lauderdale Realtors
Top Economists Agree Fort Lauderdale Real Estate Market Recovery is Underway
Many of the top economists in the United States recently gathered at the Florida Realtors 2013 Real Estate and Economic Forecast Conference in Orlando. Many of these experienced analysts agreed that Florida’s residential real estate market is projected to continue on a positive trend throughout the year of 2013, even if the rate of recovery is slower than that of the United States as a whole. A chief economists for the Florida Realtors firm shared that the housing market in Florida is recovering and will provide beneficial circumstances but has only began to show signs as of yet.
The Henri Frank Group brokered by RE/MAX Preferred, lists, sells, assists buyers and renters in Fort Lauderdale, Miami, Wilton Manors, Oakland Park and all throughout the South Florida region. Our experience at the start of the 2013 selling year, more buyers and less listings, which speaks to the basic economic theory of supply and demand. Real Estate in South Florida, like single family homes in Fort Lauderdale, condominiums in South Beach Miami are enjoying a recovery stronger than other parts of the State of Florida. With the influx of International buyers, buyers with cash to buy in South Florida, totals up to a stronger than expected recovery.
The REALTORS® of the Henri Frank Group are encouraging their buyers who are hesitating to buy now to consider a change in their strategy. The mortgage rates remain at a historical low for those who are using financing, the inventory although less than it has been in the past 60-months is still out there to buy in Fort Lauderdale, buy in Miami Beach, buy in Wilton Manors or Boca Raton. All of this adds up to the time to buy a South Florida home, condominium, townhome, villa or multi family property.
Additional speakers at the Florida Realtors 2013 Real Estate and Economic Forecast Conference included Fannie Mae’s senior vice president and chief economist, Doug Duncan, California Association of Realtor’s vice president and chief economist, Leslie Appleton-Young, as well as Appraisal Group MidFlorida LLC’s Pat Reass who practices as a state-certified residential real estate appraiser in the city of Winter Haven, Florida.
Fannie Mae’s Vice President and chief economist Doug Duncan stated that the firm considers the housing market of the United States to be on solid ground and that most of the rehabilitation in the housing market can be accredited to the increase in the supply of properties. Duncan shared that the amount of distressed properties in the United States has decreased from roughly 5 million to about the 3 million mark. He also predicted that mortgage rates should remain relatively low throughout the year of 2013 and will not change a lot as well as lenders continuing to enforce higher standards regarding borrowing and penurious credit conditions.
Mr. Duncan indicated that the progression for the recovery of the housing market is unshakable and that massive growth is soon to come, creating more employment opportunities and building a more stable economy as a whole. Duncan uncovered that the United States is three years into the rehabilitation process and that today’s economic expansion is the most vulnerable it has been since World War 2. He justified this by sharing that only a little more than half of the jobs that were lost during the Great Recession have been regained as of now.
Based on data from the National Association of Realtors, the Florida Realtors Firm and other reputable sources indicated that the real estate market hit rock bottom in 2008 and has since early 2009, been showing signs of rehabilitation and eventually a full recovery. Average sales prices for homes have continued to increase for both condo-townhome units and existing single-family residences throughout the state of Florida. The large amount of active foreclosure properties and short sales properties (distressed properties) in the state of Florida has lead to lower returns and a slower rate of sale in comparison to levels present in the state of California and the rest of the United States.
Tuccillo’s Notable Indications of Florida’s Continuously Developing Residential Market
- The month’s supply of single family properties has fallen below the 6 month mark.
- The most recent data from October of 2012 shows that 44% of closed home sales were cash offers which is a definite sign of a massive demand from real estate investors.
- Per October 2012’s data, foreign buyers made up 19% of Florida’s closed sales Non-Distressed (traditional) property sales account for more than 50% of Florida’s closed sales.
- Florida’s closed sales are made up of less Real Estate-Owned (REOS) properties and more short sales.
- Although shadow inventory has continued to fall since 2009, it still remains a crucial element in the progression of Florida’s housing market as the state of Florida is a judicial foreclosure state which means that all foreclosures must go through a drawn out court process.
In comparison to the state of California’s and the United States as a whole, the continuous recovery noticed in Florida is just a confirmation that the housing market in the United States is slowly but surely recovering. Recent data from the latest National Association of Realtors (NAR) report displays an increased in closed sales and sale pricing soaring as well.
California Association of Realtor’s vice president and chief economist, Leslie Appleton-Young shared that she believes that the low supply of inventory has proven to be a difficult notion for many regions of the United States, including Florida and California. She indicated that there aren’t nearly enough properties for sale on the market when there are so many investors searching for bargain homes. Investors that make cash offers on properties account for 29% of closed sales in the state of California and 25% of the United States’ housing market as a whole.
Appleton-Young has coined the year of 2012 as “the return of the traditional seller to the marketplace” and with good reason since in the month of October 2012, 63.4% of California’s total home sales were from traditional or equity sales. Vice president and chief economist Leslie Appleton-Young shared that the current month’s supply of current single-family homes in the state of California is 3.1 months. In comparison, the state of Florida is still facing many complications with lenders regarding strict credit requirements, but these issues are being handled at a quicker rate which has had an effect on the rising prices in the state.
Leslie Appleton-Young expects the rising demand for housing in the United States in 2013 to be partly met by the increase in new residential units being built but not enough to meet the concentrated demand of waiting buyers.
What will the housing market in Florida bring in the year of 2013?
Tuccillo projects that If the financial issues of the United States has not been resolved and are put on the backburner, employment opportunities in Florida will increase 10% throughout the year of 2013, residential sales will grow by 10%, and home sale prices to increase 5%, reconstruction of commercial real estate, and the housing inventory to surge as the housing market recovers. Tuccillo projects that the recovery of the housing market and increasing home prices will yield more prospective sellers in the housing market and that 2013 will be a great year for the housing market nationally.
To talk more about the South Florida Real Estate Market, contact us at the Henri Frank Group at RE/MAX Preferred.
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