Florida Home Sales Picture a Little Brighter

Florida homeowners aren’t dancing in the streets just yet. But there is good news on the horizon. Overall, sales of existing homes were up for the third consecutive month in May, according to the Florida Association of REALTORS (FAR).

However, buyers are being very particular about neighborhoods. According to Jack Winston, a real estate analyst with Miami-based Goodkin Consulting, the rising cost of gas is stimulating activity in downtown areas and other locations close to work and amenities. This is good news for Dade county markets like Doral, Hialeah, North Miami and, in Broward, West Hollywood, Miramar and sections of Lauderhill. In Broward, about 651 houses and condos listed for less than $199,000 were bought and sold in May, a substantial increase from 2007.

Part of this activity is being spurred by lowered prices due to the many foreclosures in the area. Although financing regulations have tightened up, buyers who are “moving up” are often able to use the money from the sale of their lower-priced home as a substantial down payment for a foreclosure or home whose price has been lowered for a quick sale.
European and out-of-state investors may also be influencing the increase in sales, especially in markets like Miami Beach which experienced more sales in May than almost any other area in Miami-Dade. However, investors and speculators are generally looking for single property values and are not expected to ignite another real estate boom here as they did in the 90s and early 2000s.