Last week, both the Miami Herald and the Sun Sentinel reported that property prices are now back to the same level they were in 2003. The Herald writes that the weakened U.S. economy means fewer and fewer people are able to obtain mortgages and that many are also scared from taking the plunge and making a purchase at the moment. Both of these reasons will, in turn, contribute to prices falling further.
However, falling prices have caused a recent upturn in the amount of properties being sold. Both newspapers state that sales of houses and condos increased in Dade and Broward counties from November 2007 to November of this year. Sales of houses rose by 39% in Dade and 26% in Broward; for condos it was a rather smaller 4% for Dade and 3% for Broward. There were also fewer properties coming onto the market too for the same comparison period, although supply still vastly outstrips demand.
The two articles report that the housing market isn't expected to make a recovery soon, with 2010 more likely to experience an upturn rather than next year. However, they do both highlight the fact that for those willing to take a gamble, there's plenty of opportunity to grab a bargain right now.
To finish this post, I'd like to point out what I think is a great quote in the Sentinel from a Californian gentleman, Bob Tucker, who recently bought a five-bedroom property in south Florida (it is not mentioned exactly where) for $743,000, which was $250,000 off the market value for the area. Despite some problems with the purchase and the property itself, Mr Tucker says:
"...I think it's a good investment because this is such a desirable area."
Very desirable area indeed, Mr Tucker.
Happy New Year to everyone and all the best for 2009.
Article: As prices tumble, buyers scoop up existing homes in Broward County (Sun Sentinel, 24th December 2008)
Article: Lower home prices behind uptick in South Florida home sales (Miami Herald, 24th December 2008)
