More Changes In Store For The Local Market
It’s been an interesting September so far. Two mammoth hurricanes brushed by us as tropical storms and, sadly, turned parts of the Gulf of Mexico’s coast to rubble and swamp. At the same time, the busy fall real estate season, initially, appears to have a few less buyers active than normal - at least from my viewpoint.
Will hurricane emigrants, deciding to move permanently, increase buyer demand in the area? Can they afford to buy here? Have local buyers found themselves priced out of the homes they wanted? Are the buyers relocating from higher priced areas such as the northeast and the west coast delaying their home searches until closer to the end of hurricane season?
Today’s home sales statistics, announced by the Florida Association of Realtors (of which I’m a member), indicate that local home prices are still about 27% above prices 12 months ago. The median home price in August 2005 was $411,400, well above the figure of $324,700 a year ago. These prices may be tough for local residents to swallow. Still, compared to some parts of the country, our homes and neighborhoods are still attractive, if not just “slightly more affordable” than the highest priced markets in the nation.
Sellers used to very short selling times, measured in days, may be nervous if their marketing time increases to weeks… but compared to five years ago, it is still predominantly a sellers’ market.
Activity over the next few months may indicate whether there is a trend toward a slowdown in our market’s price appreciation. It’s too early to tell, but as the National Hurricane Center said of these storms in their early days, “interests in South Florida should closely monitor” changing local market conditions.
Tags: buyers, Hurricanes, prices