The residential real estate market is gradually improving in Florida, according to a myriad of factors presented at the recent Florida Realtors® 2013 Real Estate and Economic Forecast Conference in Orlando. Prominent U.S. economists at the event projected that the residential real estate market in Florida will continue to escalate in 2013, but the pace could be slower than the United State as a whole.
“We believe the housing market is on firm footing,” Fannie Mae Chief Economist Doug Duncan said at the conference. “Most of the improvement we’ve seen has come from the supply side of housing. Distressed properties are coming down from about 5 million to more like 3 million.”
According to Dr. John Tuccillo, who is chief economist for Florida Realtors, the real estate market “bottomed out in late 2008” based on market date from Florida Realtors, information from the National Association of Realtors (NAR) and other market research.
“Since the beginning of 2009, we’ve clearly seen a regrouping and a recovery underway,” Dr. Tuccilo said.
According to Dr. Tucillo, some of the signs that Florida’s residential real estate market is improving include:
- A months’ supply of single-family homes is now under six months
- The latest data (from October 2012) indicates that 44 percent of closed sales were paid in cash, which indicates a strong demand from investors
- Foreign buyers compose 19 percent of closed sales in Florida (based on date from October 2012)
- Traditional sales now feature more than 50 percent of Florida’s closed sales
- Closed sales are made up of fewer REOs (real estate-owned) and more short sales
- The shadow inventory has been decreasing since 2009; however, it remains an important factor in Florida’s housing market going forward since this is a judicial foreclosure state (which means that foreclosures undergo a court process)
Based on the scenario that the country’s fiscal problems are postponed if they are not resolved, Dr. Tuccilo told conference attendees that he believes employment in Florida will increase 10 percent in 2013, as will residential real estate sales. He also believes the inventory will expand as the market improves.
“I think the improvement in the market and rising prices will bring more potential sellers back into the market,” Dr. Tuccilo said. “Signs point to a better year in 2013.”
The Estelia Mesimer team at Keller Williams Realty in St. Petersburg has seen an active 2012. For more information on Estelia Mesimer and her team, and to learn more about the high-end homes she represents, visit www.estelia.com.
You can reach Estelia at (727) 686-2859 and at email@example.com. Her office is located in downtown St. Petersburg at 111 2nd Ave. NE., Suite 400.