Staredown Between Buyers and Sellers in Miami; Florida Home Loan Demand On Par with Supply

Who will blink first? That seems to be the issue at stake in Miami, where sales fell in July but home prices remained stagnant.

So, where does the county go from here? Will sellers cave and bring down prices? Making it possible for Florida mortgage loan demand to increase due to reasonable house values? Or will owners remain stubborn and continue in their staredown with hopeful buyers?

”The longer it takes for sellers to recognize the market they are in, the worse the market will become,” said Manuel J. Iraola, president and CEO of Homekeys, a Kendall-based brokerage that sells homes in Miami-Dade and Broward.

However, some real estate professionals still say sellers shouldn’t budge and that buyers will eventually adjust up. There’s no way of knowing which side is correct - but a number of bubble sitters certainly hope they come out on top as they delay applying for a Florida home mortgage until prices drop even more.

The Miami housing market in July

Last month, prices held more or less steady in the single-family home market. The median price for a single-family house came in at $382,200 in Miami-Dade and $380,400 in Broward. In Miami, that amounts to appreciation of 5 percent from last year and 1 percent from June.

In slightly worse news, however, the county’s condo market showed signs of weakness. Condo prices dropped to $252,200, down 2 percent from June and 11 percent from a year ago. It was the first double-digit percentage fall since the South Florida housing market started cooling last year.

A bright future ahead?

The South Florida market still is far ahead of where it was three years ago. In July 2003, for instance, a median-priced single-family home went for $232,700 in Miami-Dade and $236,700 in Broward.

Furthermore, the underlying economics remain strong: population growth; low unemployment; appeal to international and second-home buyers and relatively low Florida mortgage rates.

Unfortunately, even the most optimistic observers who predicted the return of a strong market this year have revised their timeline. Lackluster sales have continued through the summer months. said Ronald A. Shuffield, president of Esslinger Wooten Maxwell, which sells homes across South Florida.

”When we saw the price appreciation stop earlier this year we thought it would get everyone back on board,” Shuffield said. “But there has been such a dark cloud painted over the housing market that it hasn’t happened. Everybody gets anxious at a time when a market transitions, we forget that we have been here before.”

And every time before, especially in the Sunshine State, buyers have returned. Florida mortgages are always appealing option due to the climate and nature of local counties.