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Wednesday, November 21, 2012

South Florids'a Housing Market Keeps Getting Better

South Florida's housing market keeps getting better, at least for sellers.
Powers@tribune.com, 561-243-6529 or Twitter @paulowers

Strong demand and a shortage of available homes helped push prices higher in October. Broward County's median sales price for existing homes last month was $211,000, a 16 percent increase from a year earlier, the Greater Fort Lauderdale Realtors said Monday.

Broward saw 1,198 homes trade hands, up 21 percent from October 2011.
Palm Beach County's median price was $222,500, a 23 percent increase, according to the Realtors Association of the Palm Beaches. The county posted 1,159 home sales, a 22 percent jump.
Existing condominium prices also increased, hitting $90,000 in both Broward and Palm Beach counties. Condo sales rose 17 percent in Broward and 15 percent in Palm Beach County.

 
Values are on an upswing this year as a lack of available properties give sellers more negotiating power. At the end of October, Broward had only 4,806 single-family homes on the market, about half the number from a year ago. Palm Beach County's inventory was down 43 percent.

Most market observers insist that prices have hit bottom, though some analysts say the recent gains will start to level off once lenders list more foreclosed homes for sale.
"I do not believe pricing will come back down," said Summer Greene, president of the Florida Realtors and a general manager for Better Homes & Gardens in Broward. "I think that time has passed."
Local real estate agents say homes priced $150,000 and below are in high demand. Even short sales — which can take months to complete because banks must approve the deals — aren't deterring buyers.
Douglas Rill, broker of Century 21 America's Choice in West Palm Beach, said he recently listed a three-bedroom short sale with a pool for $89,900. He had 27 inquiries, 12 showings and six written offers in three days.

"Does that sound like a slow market?" Rill said. "The low-end is on fire, reminiscent of 2005."
Homes are selling faster than they did a year ago. Broward's average days on market in October was 42, down from 58. Palm Beach County homes are selling in an average 106 days, compared with 113.
Statewide, the median price for existing homes was $145,000, a 9 percent increase from a year earlier, according to the Florida Realtors. Home sales across Florida rose 25 percent in October.
Historically low mortgage rates eventually will rise with inflation, Gary Thomas, president of the National Association of Realtors, said in a statement. He urged potential buyers to improve their credit scores so they can qualify for mortgages before rates increase.

"Even with rising home prices, we'll continue to see favorable housing affordability conditions over the coming year, but they won't last forever," Thomas said.
The strength of the nation's economy and the future of the mortgage interest tax deduction will be large factors in the housing recovery, said Mike Larson, an analyst with Weiss Research in Jupiter.
Larson also wonders whether investors eventually will create a frenzy that leads to another bubble.
"That certainly bears monitoring, but I think it's something to keep an eye on rather than freak out about," he said.
Powers@tribune.com, 561-243-6529 or Twitter @paulowers

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