Home Prices Finally Fall in Broward County; Ripe Time for Florida Mortgage Loans in Area

It hasn’t happened in over six years. But now that it has, buyers waiting for a lull in the market should be considering a Florida home mortgage loan application right now.

What is “it?” A drop in the median price for existing single-family homes in Broward County, the first time such an event has taken place since April 2000. In July, area’s median price for was $380,400, a 1 percent dip from the previous year, according to the Florida Association of Realtors.

That may not seem like a drastic difference, but 1 percent is a lot when you’re talking about six-figure prices. A Florida home mortgage is the county should seem more reasonable now to a number of individuals. Between 2000 and 2005, year-over-year median prices routinely rose 30 percent during the South Florida housing market - but then the price gains narrowed considerably this year. Now this.

The effect on owners

“What it means for homeowners is that wonderful buildup of equity is starting to erode,” said David Levin, a housing analyst in Delray Beach.

He doubts the slumping market has hit bottom. With prices falling and interest rates rising, Levin, said residents shouldn’t delay in applying for a Florida home equity loan, which is based in large part on a home’s value.

The timing is perfect for buyers, as sellers grow more desperate. Even last month, Broward’s home sales continued to decline, falling 30 percent in July compared with the year before. Condo sales dropped 39 percent, while the median condo price rose 4 percent to $209,100.

Mike Pappas, president of Keyes Co. Realtors in Miami, said he’s not surprised by the housing market’s continued slide. But he does expect things to improve soon, in part because South Florida’s inventory of homes for sale seems to have peaked. Broward, Palm Beach and Miami-Dade counties have about 120,000 listings of homes and condos; that figure has remained steady for three months in a row.

“I think that bodes well for the future,” he said.

In the Palm Beach housing market, existing home sales fell by 44 percent in July. The median price was $390,100, virtually unchanged from $391,600 in July 2005. Meanwhile, existing home sales in Miami-Dade County declined 38 percent, while the median price rose 5 percent to $382,200.

Various views on Florida mortgage loan future

While some South Florida real estate agents are optimistic, others are concerned that the market will get worse in the coming months as buyers wait for prices to fall. David Eiglarsh, an agent with ReMax Hometown in Weston, said he spends most days calling clients and persuading them to reduce asking prices.

He predicts prices will continue dropping during the next six months to compensate for the “absurd” increases over the past few years. Bad news for sellers, good news for anyone thinking about taking out his or her first Florida home loan.

Richard Edwards, 55, general manager for an aviation hardware company in Fort Lauderdale, said sellers in a soft market must make their homes look especially attractive. He cleaned grout lines in the tile and painted his front door and garage floor.

“We made sure it showed like a model,” he said. “I really think that’s the key.”

Others sellers are coming to a similar conclusion as they get creative and attempt to attract those seeking Florida home loans. As it stands now, the buyer has all the power.