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South Florida Housing Market Prediction: Look For More of the Same

Existing home sale figures for March will be released today, and experts are predicting little movement in the sluggish South Florida real estate market.

Year-over-year sales and prices have declined across the region since 2006, following a five-year boom, powered by record-low Florida mortgage costs.

Analysts have said they expect the South Florida housing market to bounce back later this year, but financial trouble among lenders that make loans to high-risk borrowers could delay any recovery until 2008.

As lenders tighten their standards, residents are having a harder time qualifying for Florida mortgage refinancing to bail themselves out of trouble. This trend has magnified in recent months.

  • Palm Beach County’s median price for February was $374,300, down $16,700 from $391,000 a year ago.
  • Sales plunged 21 percent, to 560 from 707 a year ago, according to the Florida Association of Realtors.
  • In Broward County, the median home price was $362,200, up $1,400 from $360,800 a year ago.
  • Sales dropped 20 percent, to 498 from 622 a year ago.

SOURCE: South Florida Sun-Sentinel

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