30a Market Trends
Latest housing figures are out:
The single most asked question by prospective buyers and sellers today is “ what is the market doing “. This question is fueled by an overall consensus by experts in the industry that the market is definitely changing.
Here is what we know: Florida’s housing market continues to demonstrate it’s recovery. The figures for March show statewide median sales prices have increased for the 15th straight month. We have experienced a 9% increase over this time last year in closed sales. Pending sales in March are up 23.4% over last March. Closed sales typically occur 30 to 90 days after sales contracts are written which means that these increases are continuing to rise.
The 2 primary reasons we are seeing prices rise are the amount of inventory available for purchase is shrinking and interest rates on mortgage money remain at incredibly low levels. The Federal Reserve does not see an increase in interest rates likely for the next 12 to 18 months which further fuels the demand for home purchases. Florida Realtors Chief Economist Dr. John Tuccillo states “ we expect to see inventories rise as we approach the last quarter of 2013”. This means we will see these “spikes” in prices and sales begin to moderate over time which will bring stability to the market.
Overall, our real estate market here on 30A is strong and active. Prices are beginning to rise for the first time in 7 years but they remain far below 2005 levels. Mortgage financing has become more stringent with higher down payments required and full disclosure documentation from applicants which also creates a more secure real estate market.