South Florida Housing Market: Hope Remains

Metrostudy said its fourth quarter housing data show early signs of hope for the South Florida housing market, which it considers to be Palm Beach, Broward, Miami-Dade, Martin, St. Lucie and Indian River counties.

“The annual pace of new home starts in the six-county region fell to a level that can allow inventory to decline - a milestone on the path to equilibrium,” said Bradley F. Hunter, director of Metrostudy’s South Florida division.

Metrostudy, which bases its South Florida division in the West Palm Beach housing market, said regional starts have fallen to 17,525, which it said is significantly below the level of demand for marketwide move-ins, which numbered 19,417.

“The reduction in starts was the first step,” Hunter said. “Soon, inventory of both unsold homes and homes that have been sold but are still vacant will diminish.”

The housing information firm counts home starts and move-ins by driving past each lot or home in each active subdivision to verify the construction status of each new home every quarter. From there, naturally, it’s up to Florida mortgage applicants to make the purchase.

The number of local resale listings is still increasing, but Metrostudy said it expects a peak in that supply indicator during the next few months - and not just because of the winter season.

“Many MLS listings are those of market testers - sellers who were hoping for a high bid, but who are now letting their listings expire. The reduction in this number will be a reassuring sign,” Hunter said.

He targeted the to move back toward inventory equilibrium starting in the first or second quarter, and continuing throughout the year.

However, Metrostudy noted its research suggests there will still be “months of adjustment” ahead.