Dennis Norman
By:Dennis Norman
Florida is definitely a state that has felt the impact of the declining real estate market. It has been one of of the top four states in number of foreclosures,biggest declines in values and a few other statistics a state would just as soon not be associated with.
The tides may be turning though. The Florida Association of REALTORS(R) reported today that existing home sales in their state rose again in May…the ninth month in a row that sales activity has increased in a year-to-year comparison. Home sales were up 16% in May and condo sales were up 21% for the same period.
Home and condo prices in Florida have taken a big hit over the past two years. Last month the median home price for existing homes was $144,400,a year ago it was $203,800. However the median price in May for Florida was higher than the prior four months. Condo prices have followed suit as well:May’s median condo price was $113,400,down almost 40% from a year ago when it was $181,700. Like single family homes,condo prices are showing signs of “bottoming out”. May’s median condo price was higher than the prior 3 months and about equal to four months ago.
These stats would lead me to believe that the prices in Florida have fallen to 
the point where home owners and investors are perceiving value and stepping up to the plate and buying. For investors that have been wanting to take advantage of the lower prices in Florida but cautiously waiting for the “bottom”I think these statistics should tempt them to wade out in the water.
Having said that I want to do a little CYA. With the way our federal government has been printing and spending money and the relative instability of the economy,things could change for the bad quickly and this could end up being a “false bottom”. The problem is it is really impossible to determine the “bottom”of a market until it has passed.
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