30a, A Real Estate Market in “Flux”
I try to set aside some time each morning to read some of the state and national updates on what is taking place in the real estate market. It is clear to me, at this point in time, that we reached our bottom in price sometime late last Summer, 2012. Since then we have seen a spike in prices from home sellers as well as a spike in builder’s pricing on new construction. We are now experiencing a bit of hesitation from buyers as these prices are being forced up on the selling side and this will create a moderating effect on prices as we head into the Summer here on the beach. Demand remains good but it is not going to be strong enough to drive prices much above a 5 to 8% increase from the lows we have experienced.
According to Core Logic, a national publication that tracks real estate statistics, we reached our high point in prices in the State of Florida in September of 2006. Since then, we have experienced a 43% drop state wide. Distressed sales (short sales and bank repo’s) continue to drop and the prices have increased 8% over last year.
Something to remember about our market is this; despite a climb in prices, real estate is still a great value because prices remain well below 2006 prices. This, coupled with interest rates that have not been this low since the 1950’s, creates a healthy overall environment and will continue to drive demand, only at a more steady pace.