Florida Real Estate Year-end 2009: Fla. Home Sales Rise 31%
If you don't read the newspaper you are uninformed, if you do read the newspaper you are misinformed.
~Mark Twain~
Existing sales up 31% compared to end of '08; existing condo sales up 47% in year-to-year comparison. National sales up 4.9%. Read more.
So, the figures for Florida are finally in! Although the sales volume marks a drastic increase 31%, especially when compared to the national index of 4.9%, it shows that the sales price is down by 10%.
I agree, if one reads the entire report, an excellent read by the way, which finally blows the biggest myth of all that "Florida is a declining market", may find the information contradictory when applied to the local submarkets. My study of one such market, Miami Beach shows completely different numbers. Not only the sales volume is up by 31% 2009: 2008, but the value as well- 7.5%. On top of everything else, the median price for this same market has risen almost 12% for the current listings.
Here is what we need to understand when producing accurate and relevant information, or digesting a report on local real estate market:
1. The most important part of the stats was the fact that the existing home sales in FL are up 31%; and condos 47% compared to the nat'l sales 4.9%. This figure alone blows away ALL myths about the declining Florida market!
2. One cannot take the 10% price decrease out of context: National Association of Realtors® (NAR) note that sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes. The median is the midpoint; half the homes sold for more, half for less.
3. When one applies the correct data comparison approach and how that measures to the local market (remember that one cannot compare Miami Beach with Jacksonville or Okeechobee!), you will see that this market (Miami Beach) has only insignificant fraction of the foreclosures, thus it is not adversely affected by them. Generalizing is in fact the greatest mistake the media makes.
4. To give you the exact stats for a small but sought after section in Miami Beach, here is how the very specific market figures compare on this common denominator. I am using data for only 2 bedroom units, located in Collins ave. zip code 33140, 33141 (regardless of ocean or ICW).
a. MEDIAN price today: $ 641.03; total units on the market: 299;
b. 2008: median price: $526.50; Sold: 145;
c. 2009: median price: 560.14; Sold 181;
The verdict: 31% increase in sales 2009 vs 2008; and 7.5% increase of value!
I hope, that now you understand how the local market scores exactly and why it is important to use the correct figures when analyzing the specific real estate markets. There is nothing general in real estate, everything is specific and local.
Kate Smith, Realtor®, ABR, CRS, E-Pro, TRC, LHM
ZipRealty, Inc.
Licensed in FL
786.412.8510 kate@hollywood-beach-real-estate.com; katsmith@ziprealty.com
http://www.hollywood-beach-real-estate.com; blog: http://4realestate.wordpress.com
http://www.linkedin.com/in/miamirealtorkatesmith
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