Today one of the state's largest title insurance underwriters release its 2009 Real Estate Forecast and Southeast Florida focus. To those of us that live here it is no surprise that the numbers are grim. To those outside of Florida the numbers are shocking! The report, issued by Attorneys Title Insurance Fund, makes several projections and findings.
First, it expects no housing rebound until at least 2010, largely because of declines in population and employment growth.
Existing Palm Beach County single family homes average price peaked in 2006 and will be off 50% in 2009. Broward and Miami-Dade Counties are already at or very near their bottom. Average prices across the region will be around $300,000, which is down 40 to 50% from the peak.
New home sales and prices are dramatically changed. Last year saw Palm Beach average less than 133 new home sales a month, which is perhaps only 15% of the peak monthly sales from before. Broward County saw only 350 units sold in 2008 and projects about 1000 units yearly through 2012.
Housing starts in Palm Beach County went from a 14,000 high to a 2007 low of 3,000 units. Look for a rebound to 6,000 but gradually with that figure being reached in 3 more years.
Condominium sales for existing homes was also off about two-thirds from 2005 peaks and prices are still softening for the coming year. Look for a gradual improvement through 2012 but only to about half of the peak 2005 levels. Prices will fare somewhat better for this part of the product line, but will not recover to the lofty heights for any foreseeable future.
Richard Zaretsky, Esq., RICHARD P. ZARETSKY P.A. ATTORNEYS AT LAW, 1655 PALM BEACH LAKES BLVD, SUITE 900, WEST PALM BEACH, FLORIDA 33401, PHONE 561 689 6660 RPZ99@Florida-Counsel.com - FLORIDA BAR BOARD CERTIFIED IN REAL ESTATE LAW - We assist Brokers and Sellers with Short Sales and Modifications and Consult with Brokers and Sellers Nationwide! Shortsales@Florida-Counsel.com New Website www.Florida-Counsel.com. See our easy to find articles at Need Short Sale Information? - These Articles Probably Answer Your Question