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Housing Market Making a Comeback in Florida
11/23/09 - 02:46 PM

Associated Press

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The housing market is making a comeback in Florida and across the country as homebuyers rush to take advantage of a federal tax credit.

Figures released today by the Florida Association of Realtors show existing home sales jumped 45 percent last month. That represents more than 15,000 (15,160) homes sold.

Home sales nationally far exceeded expectations in October, surging to the highest level in two-and-a-half years and Florida’s housing market showed promising signs as well.

Sales of existing homes jumped 10 percent nationwide last month while in southwest Florida homes sales soared 77 percent, according to the Florida Association of Realtors.

That’s quite a turnaround for such areas as Fort Myers and Cape Coral, which have experienced some of the highest foreclosure rates in the nation.

Analysts say the government’s tax credit of up to $8,000 boosted homes sales as people rushed out to take advantage before it was set to expire on November 30th. But now the tax credit has been extended to any buyers who sign a purchase agreement by April 30th.

Plus, it has been expanded. People who have owned their current homes for at least five years will qualify for a tax credit of up to $6,500 if they buy a house.

It’s definitely a buyer’s market with three big factors fueling home sales: the federal tax credit, low interest rates and low housing prices.

John Sebree of the Florida Association of Realtors says home prices in Florida are as low as they ever will be and buyers across the country are looking for deals here.

“They know that it’s incredibly well priced, far below market value, and so the investors and first-time buyers are picking these properties up.”

Sebree says areas hit hard by foreclosures, including Fort Myers and Cape Coral, are seeing a surge in home sales now as buyers scoop up those properties. Sebree says home sales in southwest Florida were up 77 percent last month compared to a year ago.

“Those investors and first-time homebuyers have discovered those and they’re buying them even if they can’t sell their house back in Indiana or Michigan. They’re buying the Florida property because the price is so good.”

“Florida is in a unique position because we have not only first-time homebuyers but we have investment buyers, we have second-home vacation buyers and that puts us in a very good position.”

Sebree says Florida’s housing market is in a unique position right now because it’s getting a lot of attention from both first-time home buyers and investors across the country.

The national median sales price is about $173,000. That’s down seven percent from a year ago and down 1.6 percent from September.

In addition to lower prices, mortgage rates have been hovering around 5 percent since spring.

The inventory of unsold homes on the market has dropped to a seven-month supply, which is close to a healthy stock of about six months.