Evidence Points to Florida Home Loan Slow Down, Rising Inventory

Nationwide, home sales may have risen in May, but there’s no surer sign of a weaker housing market than this: Properties are remaining on the market, unsold, for longer than any period of time in the last few years.

While the National Association of Realtors doesn’t maintain national time-on-market figures for this issue, inventory has climbed 37 percent for the 12 months through April 30, the most recent data available. Where are all the Florida home loan buyers?

They’re waiting for prices to come down, something that’s at least beginning to occur in the South Florida housing market. Nevertheless, unofficial regional numbers show that homes in Miami are now on the market for 35 days, a jump over the previous estimate of 20 days.

All this supply means homes are sitting around longer and sellers are asking more than buyers are willing to pay - an indication that prices may have to come down in order for individuals to agree upon any Florida home loans.

“Sellers are in denial, and there is a rising disconnect with the buyers,” said Jonathan Miller, a real estate appraiser in New York. “Until sellers get the message, you’ll see a drop in the number of transactions.”

Comparing housing markets

In once superheated markets, such as Florida, things have gotten tougher.

In Hanover, New Hampshire, broker Ned Redpath reports a “drastic” increase in time-on-market. All through the 2000s, New Hampshire averaged double-digit price appreciation and about 60 to 70 days on market. Now Redpath estimates average time-on-market at 125 days. He expects price changes to soon reflect that.

Meanwhile, in Miami, the time-on-market has lengthened to between 30 and 40 days from about 20 just a few weeks ago, according to Mario Tome, of Greater Miami Realty. Sales have been falling in the are as those seeking a Florida home loan wait for sellers to face reality.