South Florida Home Prices To Hit Bottom in 2012

By
Real Estate Agent with International Properties and Investments LLC
http://actvra.in/qpr

South Florida Home Prices To Hit Bottom in 2012 

Six years after the housing collapse here in South Florida there is a predicted light at the end of the tunnel. Time goes by very fast. It seems like just yesterday we were watching home prices fall by over 50% in many parts of South Florida- in Palm Beach County, Broward County and Miami Dade County and up to St Lucie County along the Treasure Coast. 

Here we are six years later and prices are beginning to stabilize. That is a long free fall! Moody's Analytics projects that in the next 10 to 15 months we will see the bottom of the fall. 

It is not going to be some housing boom especially not the likes of what we have seen in 2003, 2004 and to the middle of 2005 when the prices peaked.

This is all about median also. So bear that in mind. That means there are areas that will see a faster rise and others a slower upswing. There are condos on the waterfront in South Beach in Miami that already have risen by 25% but yet down the street into North Miami Beach off the waterfront sellers can not give their condos away. So it is all relative to your exact market.

Here in Wellington the prices for most properties and subdivisions are beginning to stabilize. Near 60% of all our sales are ALL CASH closings. The lower end properties sell to first time homebuyers or investors. The equestrian high end has always sold to those serious about moving their horses here to our great climate.

But there are areas all around us that are not fairing as well. 

Some of the banks are not as positive in the outlook because they say there are still too many foreclosures in the courts and too many people behind in their payments and too many bank owned properties that still have yet to be put on the market. 

Unemployment rates, tougher lending rules, harder to get a mortage regulations and more fees on mortgages will slow down the process of recovery as well. 

New home construction is starting again so if you are in the market for a new home now may be a good time to buy one. 

  Rates are still low. Interest rates for mortgages are still at record lows so if you can get a mortgage now is a great time to do so. 

Sellers who are not doing short sales and who are not in foreclosure will have the upper hand and some leverage as me move into 2012. Most likely we will continue to see bidding wars on non stressed properties. This is good news for sellers who don't want to wait until all their equity lost decides to come back. 

There are over 371,000 open foreclosure cases in the state of Florida. Palm Beach, Broward and Miami/Dade counties have about 100,000 of those cases. 

So we are not in a free fall any longer but still have a long ways to go to get out of this mess. 

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Ambassador
721,726
Mike Frazier
Carousel Realty of Dyer County - Dyersburg, TN
Dyersburg Tn Real Estate

Katerina, I believe your market fell a little further than ours here in Tennessee.

I purchased a condo in Florida 2 1/2 years ago at about 50% discount to 2005 prices. Today where I purchased the prices are right at what I paid for mine so looks like the Destin market hit bottom recently.

Dec 29, 2011 01:15 PM #1
Rainer
253,184
Kathy Burke
Sensational Home Staging~~Danville, CA - Danville, CA
S.F. East Bay Home Staging

Katerina.....I hope that is has/will hit bottom and then the only place to go is up!  Florida was hit hard and we have seen big dips here in the SF Bay Area as well.  Hoping for a GREAT 2012!

Dec 29, 2011 01:59 PM #2
Rainmaker
2,149,969
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
"Franklin MA Homes"

Hi Katerina....the northeast didn't get hit as hard as the south.....we have a shortage of inventory here....there are not enough new listings coming on the market....our town tour is continually being canceled because there is no new inventory.....builders are now looking for land again....very cautiously...... it's a good time for that to happen....land is at an all time low and if a builder has cash, he's king and can buy the parcel right.

Dec 29, 2011 03:49 PM #3
Rainmaker
874,574
Fred Carver-Top Realtor Victoria, BC
Re/Max Camosun Victoria BC Real Estate - Victoria, BC
Accredited Victoria BC Real Estate Consultant

Hi Katerina....Good News will Travel Fast, when more hear your market has bottomed more Buyers will act and buy a home.

Have Your Best Year Ever in 2012!!

Happy New Year-Fred Carver

Dec 29, 2011 04:20 PM #4
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Rich Cederberg
eXp Realty - Albuquerque, NM
eXp Realty Agent Albuquerque

We didn't see such a hard fall here in Albuquerque but we're still not seeing upward trends.  It looks like things might be turning around but we will have to wait and see what happens with all the defaults and foreclosures. 

Dec 29, 2011 08:21 PM #5
Rainmaker
1,155,969
Ginny Gorman
Phillips Post Road Realty ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in North Kingstown RI and beyond

Katerina, i always say that it flows from the west to the east and from the south to the north on home prices...as Wellington short sale agents you will always find a way and a solution to help the homeowners in need.  We are all praying for the bottom to be here and for jobs to be on the rise to help homeowners survive!

Dec 29, 2011 10:01 PM #6
Rainer
124,789
Laurie Clark CRB Angel Realty LLC Your Monument Realtor 719-502-6572
CRB-CCSS-ASD-HBS-RSD-Denver Short Sale Agents - Monument, CO
Angel Realty, LLC

Light at the end of the tunnel is such a great thing. I am sure as the Wellington short sale agent to call, you will do an excellent job of riding the remaining months and keeping clients informed on all the market specific trends. Thanks for sharing and have a wonderful new year!

Dec 29, 2011 11:26 PM #7
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Nestor & Katerina Gasset
International Properties and Investments LLC - Wellington, FL
Realtors, Wellington Florida Homes For Sale

Thank you everyone for your comments. I had all my posts in draft on Monday so that I could take this week off to get organized for the new year. Happy New Year to each of you. We appreciate your awesome comments and conversation! Katerina 

Dec 29, 2011 11:53 PM #8
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Nestor & Katerina Gasset
International Properties and Investments LLC - Wellington, FL
Realtors, Wellington Florida Homes For Sale

Rich- You don't have the ground zero of foreclosures as we did, however, I coach a broker in ABQ and she has Tons of HUD home listings. We hardly have any here. Less than 12 at any time in a huge county. Our prices were too high for FHA loans here until just a few years ago. So you have a lot more lower end homes that are owned by HUD and she also has a lot of Fannie Mae REO listings. Katerina 

Dec 29, 2011 11:55 PM #9
Rainmaker
589,274
DeeDee Riley
Lyon Real Estate - El Dorado Hills CA - El Dorado Hills, CA
Realtor - El Dorado Hills & the Surrounding Areas

Hi Katerina,

Though I'm constantly preaching about real estate being local to all my newsletter readers and clients, our areas sound very similar in what's going on in the market.  

Just glad we are not free falling anymore either!

Happy New Years to you and Nestor!

Dec 30, 2011 12:05 AM #10
Rainmaker
127,363
Faye Taylor
Floresville, TX
Faye Taylor

Those figures are disheartening.  We have not seen that type of drops here due to our heathly economic climate.   But there still is a fair amount of short sales and foreclosures now compared to 2 years ago. 

Hopefully you will stablize soon.

Dec 30, 2011 06:15 PM #11
Rainmaker
874,574
Fred Carver-Top Realtor Victoria, BC
Re/Max Camosun Victoria BC Real Estate - Victoria, BC
Accredited Victoria BC Real Estate Consultant

Christmas has Passed …..Wow it went by FastThis Year.

Thank You for being Part of My Life in the RAIN !

I Would Like To Wish You  and Your Family The Very Best Ever Year in 2012 !!!

Dec 30, 2011 11:59 PM #12
Ambassador
1,807,851
Barbara-Jo Roberts Berberi, MA, TRC - Greater Clearwater Florida Residential Real Estate Professional
Charles Rutenberg Realty - Palm Harbor, FL
Palm Harbor, Dunedin, Clearwater, Safety Harbor

Wishing you a fantastic New Year's Eve and a 2012 that is extremely prosperous!

Dec 31, 2011 10:16 AM #13
Rainmaker
594,287
Curtis Van Carter
Coldwell Banker Brokers of the Valley, Yountville Napa Valley - Yountville, CA
Napa Valley's Broker Extraordinaire in Yountville

Hi

Just wanted to wish you a Happy New Year and great 2012. Also, thanks for all you do for others here on AR. cheers cvc

Dec 31, 2011 12:34 PM #14
Rainmaker
961,150
Kathy Clulow
RE/MAX All-Stars Realty Inc. Brokerage - Uxbridge, ON
Trusted For Experience - Respected For Results

Nestor and Katerina - Nice to see some good news for the real estate market for a change

 

From Our House To Yours - Happy New Year

 

Happy New Year

 

In 2012 I would Challenge each and everyone to reach out and touch someone be it as close as a neighbour going through a hard time to some one half way around the world. It does not matter if you donate to a local food bank, or travel halfway around the world to offer aid or assistance. If we all did Just One Thing To Make Someones New Year A Little Better A Little Brighter the world would be better for it and so would we. In today's global world with its instant communication of disaster and distress how can we not reach out.

Make This A Happy New Year For Someone Else.

Dec 31, 2011 12:53 PM #15
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Nestor & Katerina Gasset

Realtors, Wellington Florida Homes For Sale
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