South Florida Home Prices To Hit Bottom in 2012
Six years after the housing collapse here in South Florida there is a predicted light at the end of the tunnel. Time goes by very fast. It seems like just yesterday we were watching home prices fall by over 50% in many parts of South Florida- in Palm Beach County, Broward County and Miami Dade County and up to St Lucie County along the Treasure Coast.
Here we are six years later and prices are beginning to stabilize. That is a long free fall! Moody's Analytics projects that in the next 10 to 15 months we will see the bottom of the fall.
It is not going to be some housing boom especially not the likes of what we have seen in 2003, 2004 and to the middle of 2005 when the prices peaked.
This is all about median also. So bear that in mind. That means there are areas that will see a faster rise and others a slower upswing. There are condos on the waterfront in South Beach in Miami that already have risen by 25% but yet down the street into North Miami Beach off the waterfront sellers can not give their condos away. So it is all relative to your exact market.
Here in Wellington the prices for most properties and subdivisions are beginning to stabilize. Near 60% of all our sales are ALL CASH closings. The lower end properties sell to first time homebuyers or investors. The equestrian high end has always sold to those serious about moving their horses here to our great climate.
But there are areas all around us that are not fairing as well.
Some of the banks are not as positive in the outlook because they say there are still too many foreclosures in the courts and too many people behind in their payments and too many bank owned properties that still have yet to be put on the market.
Unemployment rates, tougher lending rules, harder to get a mortage regulations and more fees on mortgages will slow down the process of recovery as well.
New home construction is starting again so if you are in the market for a new home now may be a good time to buy one.
Rates are still low. Interest rates for mortgages are still at record lows so if you can get a mortgage now is a great time to do so.
Sellers who are not doing short sales and who are not in foreclosure will have the upper hand and some leverage as me move into 2012. Most likely we will continue to see bidding wars on non stressed properties. This is good news for sellers who don't want to wait until all their equity lost decides to come back.
There are over 371,000 open foreclosure cases in the state of Florida. Palm Beach, Broward and Miami/Dade counties have about 100,000 of those cases.
So we are not in a free fall any longer but still have a long ways to go to get out of this mess.