“Has Florida found the secret to saving the economy?”. This May, 2014 Wall Street Journal headline shows how far the state has come since the real estate/economic collapse in 2007. The Florida Department of Economic Opportunity head Jesse Panuccio says “things have changed quite remarkably for our state. Over the past year, the private sector growth rate was 3.4% second only to Texas. Florida is now the 3rd most populous state in the country. We are bullish on the prospects for 2015 and here’s why. In the housing sector, the market has cooled from the jump in prices we saw in 2013 to more moderate levels. This brings stability to our
real estate market.”
For the first time in several years we are seeing new listings outpace sales. There is currently a 5 to 6 months supply of listings which, historically speaking, is a balanced market. Investor participation in our market is on the decline and we are seeing more family purchases. Here is a quick list of things to keep in mind as we head into 2015;
Sales growth has slowed but remains positive. The outlook for 2015 is a rate around 10%
New listings will outpace sales and bring the market back into balance.
Growth in home values has returned to historical levels. A rate of 3 to 5% yearly is sustainable.
Investor/hedge fund purchases will continue to decline.
New construction is back !
Shadow inventory continues to decline as we move further away from the property glut due to the crash in 2006/2007.
Interest rates will begin to creep up but remain historically low. Perhaps 5% by years end but some predict that they will remain below 5%.
Karen Holder, Broker
30A Real Estate Sales Professional