Florida Home Prices Bottomed in 2009
A new Florida resale home price index
A new measure for home sales, similar to the Standard & Poor's/Case Shiller-price index, was created by Florida Realtors Chief Economist John Tuccillo to be more accurately reflect home prices in Florida.
The new index pointed to 2009 as "the bottom" from a price perspective. According to Tuccillo, this was the time investors started to eye Florida for real estate deals. Since then the index has been relatively flat which is view as good thing since the runup in prices followed by the drop.
The new index showed property price increase of 152% from 2000 to 2006 and then a fall of 43% from the peak to mid-2009.
The index was developed in answer to concerns that the conventionally reported monthly median home prices doesn't offer a true measure of increasing or decreasing values. I agree with this wholeheartedly. The median sale prices indicate the price ranges that buyers are paying moving up or down and not necessarily property values.
The new Florida index is considered a "repeat sale index" as it compiles the data for resales of the same individual property over time. It's expected that the new index will be released quarterly but there is a time lag in the data. The first index reported is through August 2011.
This is one for us to track..