Broward County Housing Market Backpedals to Begin 2007

After a momentary December dose of optimism, the Broward County housing market backtracked a bit to start 2007, the South Florida Sun-Sentinel reports.

The county had 458 sales of existing homes last month, down 17 percent from 552 in January 2006, the Florida Association of Realtors said Tuesday.

The median price was $364,500, off 2 percent, or $6,000, from $370,500 a year ago. The data shows that the future outlook for South Florida home prices remains very much unsettled, and that it could be years before it comes close to the windfall that was 2000-2005.

“The market is trying to find a bottom, and it could take awhile,” said David Dabby, a real estate analyst in Coral Gables. “I don’t see any significant appreciation in prices for at least a few years to come.”

Condominium prices had a year-over-year decline, according to the Orlando-based Realtors’ group, which started tracking the sector early last year.

The median price in the local condo market in January dropped 6 percent, or $12,300, to $199,200 from $211,500 a year ago. Condo sales fell 26 percent, to 556 from 753.

Some analysts predict improvement in South Florida’s housing market in the spring as some take advantage of the buyer incentives available now. But others expect it to founder until the second half of the year and perhaps into 2008.

One major reason: the growing inventory of unsold homes.

Broward County has nearly 36,000 homes and condominiums for sale, up by 24 percent from last year, according to the Keyes Co. of Miami. At the current sales pace, it would take several years to sell that inventory.

“The inventory problem we have is still definitely with us. That’s going to put the cap on any rebound,” said Mike Larson, an analyst with Weiss Research in Jupiter.

What’s more, frustrated owners who pulled homes off the market in 2006 are now expected to re-list them as the spring selling season heats up. This will give prospective Florida mortgage loan applicants more choices, but could keep the problem of inventory absorption front and center for some time.

Not to mention the fact that Florida mortgage lenders have started to tighten standards, and that could reduce people’s buying power.

Bob Sharak, 50, who’s moving to Parkland from New Jersey, was surprised by the number of homes he had to choose from and by the wide range of prices for similar-size properties. He and his wife quickly dismissed overpriced homes.

“Some people price their homes correctly, and they’re the ones who are going to see most of the action,” Sharak said.

Marian Goodbread, 66, who recently sold her Fort Lauderdale home after 42 years and retired to Winter Haven, found a buyer in 11 days. She and her husband took their real estate agent’s advice and did a little home staging, painting with neutral colors and clearing clutter out of the house.

“The No. 1 thing, I think, is to have your house clean,” she said. “You want buyers to see where their things could go, not admire what you have.”

Across South Florida, real estate agents say they’ve seen more potential buyers in recent weeks.

“My marketing efforts were pretty fruitless” last year, said Missy Biagiotti, of Ross Realty & Appraisal in Boca Raton. “But in the last few weeks, my showings have increased dramatically.”

In January, state legislators took steps that they say will lower property insurance costs. They also seem certain to address the property-tax crunch during the legislative session beginning Tuesday.

“People’s confidence is coming back around,” said Christine Hansen, president of the Realtor Association of Greater Fort Lauderdale.

Hansen figures legislators will find a solution to soaring real estate tax bills, although she doesn’t think Florida voters will ultimately endorse a Republican proposal to eliminate property taxes on homesteaded properties.