Florida Home Sales Increase 13th Straight Month
ORLANDO, Fla. – Oct. 23, 2009 -- Florida’s existing home sales rose in September, which marks more than a year (13 months) that sales activity has increased in the year-to-year comparison, according to the latest housing data released by Florida Realtors. September’s statewide sales also increased over sales activity in August in both the existing home and existing condominium markets.Existing home sales rose 34% last month with a total of 14,419 homes sold statewide compared to 10,778 homes sold in September 2008, according to Florida Realtors (see chart above). Statewide existing home sales last month increased 4.1% over statewide sales activity in August. Florida’s median sales price for existing homes last month was $142,000; a year ago, it was $174,900 for a 19% decrease.
9 Comments:
Price decreases and quantity demanded increases!
I think you're on to an important economic discovery here. Take a deeper look into this strange phenomenon. You might get a Nobel Prize some day.
Mezzo;
Please don't offer any encouragement. We'll see this or a similar "chart" at least 10 more times before the end of the year.
Chuck, exactly what is your problem with this chart that forces you to use scare quotes around the word? Enlighten us with your analysis why this is a "chart" as opposed to a chart.
Very interesting that the trend has been in place all year. Looks like economics and government hand-outs are working. Lower prices leading to higher sales. And if you are a first time homebuyer that $8,000 taxpayer gift is a gaint windfall. In this price range, and with 10% down loans still common, thats 1/2 your downpayment.
Well if the Miami Herald knows what its talking about there are still problems that would aid it seems the increase in the sale of housing in Florida...
Homeowners walking away from underwater mortgages
'As property values have plummeted by an average of 50 percent, such strategic defaults now make up a sizable chunk of South Florida's foreclosures. In the fourth quarter of last year, they accounted for an estimated 28 percent of all defaults in Miami-Dade and Broward counties, according to recent research from the credit bureau Experian and Oliver Wyman, a New York-based international consulting firm.
That's up from 8 percent in the same quarter two years ago. With property values down even further now, researchers are certain the numbers have risen even more...
Speaking of underwater mortgages, First American estimates that as of Q2.2009, Floridian homedebtors [homes encumbered by a mortgage(s)] had average equity of 6%. The national equity rate is 22%.
Climate change or not, Florida is deeply underwater.
Don't look at Nevada. That is a cluster**ck.
The real test is a month away. Not much longer to sneak those deals in under the first time buyer credit deadline. Remove that layer of demand at the margins and there might be both lower sales volume and lower prices.
juandos, that was an interesting article. The example of the guy who bought the condo four years ago and is now underwater so he just stops making payments, even thought his employment situation has not changed and then LIVES RENT FEE for 12 months waiting for eviction notice. The 2007 tax law changes will not require him to declare the debt forgiveness as pre-2007 people were required to do. This guy is living the moral hazard dream. I wish I could get that kind of sweat deal any time my investment deal was underwater or costing me money.
I find it curious that you tell us that year to year comparisons in production are irrelevant. It is consecutive months that should be examined to see how the economy is doing. But with housing it is the year to year comparison that is important and not the consecutive months. Why do you use one measure for one segment of the economy and a different measure for another?
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