Housing Market Shows Signs of Recovery
The Florida housing market is showing signs of recovery according to the latest figures from USHMC. The Federal Reserve Chairman earlier this year predicted that the recession would end this year with recovery beginning 2010.
Federal Reserve Predictions On Target
The economy of the Southeast region continued to tighten during the third quarter of 2009 after peaking in 2007.
During the last 12 months, employment decreased in every sector except education and health services and the government sectors, Decreases of 379,200 jobs were seen in Florida. This tells us that as predicted the economy is not yet in full recovery.
Housing Market Shows Signs of Recession's End
Most local sales housing markets in the region are soft because of weak economic conditions and more restrictive credit standards. The Florida housing sales market remains soft but existing home sales increased during the third quarter of 2009. According to the Florida Association of Reators:
- During the 12 months ending September 2009, 148,900 existing single-family homes were sold statewide, an increase of 24 percent compared with the number sold during the same period a year ago.
- During the past year, the number of condominium units sold in the state increased by 27 percent, to 48,050 units.
Continuing reductions in sales prices of both single-family homes and condominium units contributed to the rise in sales volume. The new homebuyer tax credit break would also have contributed to the surge in sales.
The average price of a single-family home sold in Florida declined from $196,500 during the first nine months of 2008 to $143,600 during the first nine months of 2009, a reduction of twenty-seven percent. Coupled with historically low mortgage rates and homebuyer tax breaks, this would indicate that now is a great time to buy property in Florida. Next year the economy will be in much better shape and prices and rates will rise!
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