The lead story in a recent edition of Florida Trend magazine "Housing market ends year on a high note" The publication stated "After a long housing downturn, the market in 2012 was reminiscent of the boom years. bidding wars broke out, pitting first time buyers against seasoned investors, homes sold quickly, depleting the supply in many areas".
The 2013 Florida Real Estate and Economic Forecast Conference was held in Orlando on December 12, 2012. The positive trend of the Florida real estate recovery in 2012 will continue in 2013 according to leading US economist attending the conference.
According to Real Trends the news for the housing sales are extremely positive.
The chief economist for Florida REALTORS, Dr John Tucillo said "Florida's housing market is back, with great possibilities for the future - but those possibilities are only beginning to be realized."
Doug Duncan who is the chief economist for Fannie Mae said, "We believe the housing market is on firm footing. Most of the footing we have seen has come from the supply side of housing". Distressed properties (at Fannie Mae) have come down from five million to three million."
"The housing market is coming back, gaining momentum, and it is one of the brightest spots for the economy as we start 2013" said Robert Dye, chief economist for Comerica Inc.
Low mortgage rates are helping the real estate recovery. Weak economy and job growth have also contributed to restraining the real estate recovery. The bottom of the real estate market was in late 2008 and the slow recovery has been underway since the beginning of 2009.
Some of the signs that the real estate market is improving are;
* The median price of a Florida home in December was $154,000, a fourteen percent increase from December 2011.
* Construction on new properties rose nationally in December at the fastest clip in four years and the sales of new homes in December and these sales are likely to remain at a two and a half year high.
* Existing homes are selling at their strongest pace in three years.
* The median price of single family homes and condos have been steadily rising.
* Inventory or months supply of single family residences is now below six months.
* Non distressed properties in Florida now make up more than half of all real estate sales.
* Foreign buyers, because of the exchange rates and perceived real estate values in Florida, are up to 19% of closed sales in Florida.
* There are now less banked owned and short sales than last year.
* The shadow inventory of housing is also declining.
* Florida reestablished its top 10 ranking (in 2012) in a national education report that judges states by their education policies and performances which with encourage more families to relocate to the Sunshine State.
The economist projection for Florida in 2013, assuming the national fiscal problems are postponed, include residential sales to increase by ten per cent, prices to rise by five per cent, inventory to grow as the market returns and commercial activity to revive.The improvements in the real estate market and rising prices should bring sellers back. Historically low mortgage rates, an improving job market and increasing number of households will keep buyer demand high for 2013.
David Craven
Prudential Tropical Realty
www.DavidCraven.com
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