Broward Sales Dive; Median Prices Still Rise

Opinions vary on where the South Florida housing market is headed, but everyone seems to agree on one thing: Buyers are in no rush.
The Sun-Sentinel reports that sales of existing single-family homes fell 31 percent in Broward County during the first quarter of 2006, compared with the same period last year, the Florida Association of Realtors said Monday. At the same time, the median price rose 14 percent to $366,600.

“This is the slowdown, but I’m not a doom-and-gloom guy. People are just going to have to get used to this as a normal market,” said David Dweck, a Broward agent and founder of the Boca Real Estate Investment Club.

With more leverage than they’ve enjoyed in years, buyers have become a lot more selective in Broward County. Many held off making offers during the January-to-March period, waiting to see if the Florida Legislature would alter the state’s property tax structure significantly. Homeowners say they can’t afford to buy again because they would be slammed with huge property tax bills when they move.

As legislators decided against making any changes in 2006, some buyers will probably now go ahead and make an offer. But others will resist, in hopes of prices falling more and the Florida property insurance crisis being resolved.

“People are not going to see much relief on insurance. They’re not going to see much relief on their taxes. I don’t see [prices] going much lower. This is the best time for someone to go ahead and purchase a home,” said Donn Roebke, an agent for Illustrated Properties in Wellington.

Spring and summer typically are peak times for selling homes, and agents say they expect sales to increase this summer compared with the past few months. Inez Fleming, of Delray Beach-based Tauriello & Co., hasn’t worked with many buyers in 2006. She said people might be waiting to see whether the region gets hit with a hurricane for the third year in a row.

Hurricane season starts June 1 and ends November 30. The number of homes for sale has increased dramatically across South Florida since last year, giving buyers plenty of choices.

“You can take your time now and not rush into anything and probably get a little more of what you want,” said Sam DiCrescio, 60, a Palm Beach resident who recently started looking for a home.

Broward County condo sales fell 26 percent during the first quarter, but as we are seeing throughout South Florida, median prices rose — in this case 25 percent to $209,800.

In the Palm Beach County housing market, single-family homes dropped 32 percent in the quarter, and the median price still increased 8 percent to $392,900. Sales in Miami-Dade County dropped 9 percent as the median price increased 21 percent to $376,900.

So what’s next? Where is the market headed? Good question. One thing’s for sure, though: South Florida real estate is still incredibly inflated. But things have slowed, and may slow more yet. More expensive Florida home loan rates certainly play a role in the tepid demand, and perhaps buyers will finally drag their feet long enough to see serious price reduction.