Wednesday, October 25, 2006

Florida prices post YOY Decline.

From the FAR press release today. They are not reminiscent of the boom years of 2004 & 2005.


................................Florida Sales Report - September 2006
................................... Single-Family, Existing Homes

.................................. Realtor Sales Median Sales Price

........................Sept.... Sept ... % ........... Sept ......... Sept ..........%
........................2006... 2005.. chge ........ 2006 ......2005... ..Chge

STATEWIDE ............13,485 20,451 -34% $243,900 $246,100 -1

STATEWIDE
YEAR-TO-DATE 142,508 197,098 -28 $249,900 $231,800 8


Daytona Beach (1) 612 1,077 -43 $207,100 $224,400 -8
Fort Lauderdale 741 977 -24 $370,300 $379,400 -2
Fort Myers-Cape Coral 693 1,075 -36 $261,400 $288,700 -9
Fort Pierce-Port St. Lucie 336 621 -46 $244,300 $269,400 -9
Fort Walton Beach 267 347 -23 $231,400 $245,500 -6
Gainesville 215 289 -26 $206,400 $179,800 15
Jacksonville 1,191 1,546 -23 $190,800 $194,400 -2
Lakeland-Winter Haven 387 574 -33 $168,900 $161,300 5
Melbourne-Titusville- Palm Bay 475 679 -30 $206,100 $225,300 -9

Miami 769 872 -12 $371,700 $371,200 -
Naples 236 377 -37 $446,900 $487,500 -8
Ocala 387 429 -10 $168,000 $157,500 7
Orlando 2,015 3,105 -35 $265,000 $250,100 6
Panama City 110 163 -33 $202,100 $201,000 1
Pensacola 466 564 -17 $167,900 $163,400 3
Punta Gorda 206 353 -42 $207,800 $229,700 -10
Sarasota-Bradenton (2) 436 648 -33 $290,000 $343,300 -16
Tallahassee 395 508 -22 $185,000 $169,800 9
Tampa-St. Petersburg- Clearwater (3) 2,595 4,443 -42 $227,400 $215,200 6
West Palm Beach- Boca Raton 566 1,202 -53 $365,500 $400,000 -9


We now have YOY negative prices with volume down an average 34%. Drive through any neighborhood in South Florida and count the number of FOR SALE signs.

Sellers are faced with several problems:

1. Out of control insurance rates.
2. Insurance companies refusing coverage.
3. Skyrocketing taxes.
4. Rampant speculation.
5. Home prices that have for the most part doubled, causing houses to be unaffordable.
6. The majority of purchases in 2004, 2005, and 2006 were using ARMS.
7. Many buyers simply cannot afford the mortgage payment.
8. An explosion of inventory.
9. Rising rates.
10. A decline in the pool of potential buyers.
11. A tightening of lending standards.
12. Declining home values.

In my opinion, I have not seen a market this overvalued ever in Florida, and there appears to be a lot further to go before we see a return to the mean for prices.

2 Comments:

At 3:10 PM, Blogger AndyMiamiBeach said...

The 12% sales decline for Miami is deceiving since September 2005 sales were negatively impacted by Hurrican Katrina, which hit S. Florida on 8/25/05.

 
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