It appears that prices in Florida have bottomed and some sources are beginning to report price increases. CoreLogic of Anaheim California is reporting that prices in Florida increased 4.5% in March on a year over year basis.
Now, Florida is a big state with many different markets and this is the average price increase for the entire state. We wrote recently on one of our other sites that Daytona Beach home prices appear to be bottoming. NAR and Trulia chief economist are both saying that 2012 is the turn-around year for prices and the Case-Shiller home price data for February shows Miami prices up with Tampa prices down.
My personal experience based on my work everyday with buyers and sellers is that our local prices are no longer dropping. CoreLogic is reporting that from peak prices right before the real estate bubble bursting, Florida prices have declined 48.1%.
What’s Next for Daytona Beach Home Prices?
It seems an interesting shift has taken place. The current discussion, among those who talk about such things for a living, has shifted from when will be hit bottom to when will prices rise. My view is that it always starts with the most desirable properties. In the Daytona Beach homes market, most of the sales over the past four years have been in the lower end properties. People have been buying for rental units and current and eventual retirement. Most of these buyers are cash buyers. We see that higher priced buyers, convinced we have hit bottom, will start buying again.
We see a few things that point to higher prices:
- Predictions of mortgage lending doubling in 2013
- People on the fence who have been waiting for the absolute bottom
- Low mortgage rates
Supply for the most desirable properties will be impacted first. In the Daytona Beach area, that’s oceanfront condos, beach side homes and homes in planned communities. If you will be in the market for that type of property, it’s time to start making a move.
Just like with prices bottoming, predicting appreciation is difficult. Sellers who have been waiting for significant increases may be waiting for many more years, but gradual appreciation may be underway.
Our advice is to keep abreast of broad market conditions, but to make sure you’re working with local agents when looking at a local market. If you’re looking in Daytona Beach, Ormond Beach, Port Orange or the surrounding areas, feel free to call me at 386-566-7503 to discuss your situation.
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