Home Prices Ease, Favor Buyers in St. Lucie, Brevard
Good news for the local housing market.
The average home doubled in value in St. Lucie County, Brevard County and South Florida during the past five years, according to a national study released Thursday by the federal government.
However, growth included a decline that started in 2006 and continued during the first quarter of the year — a reflection of slower home sales and higher inventory levels, the Office of Federal Housing Enterprise Oversight (OFHEO) noted in the same report.
Local Realtors said that means that buyers, rather than the sellers who have seen their home values grow, are in the driver seat.
Florida mortgage seekers now have the upper hand when it comes to getting bargains for extras such as home warranties or help from the buyer on closing costs, the Realtors say.
“Buyers have a wonderful lot to choose from since there’s such an excess of supply out there,” said Sheri Wetzel, president of the Realtors Association of St. Lucie County. “Buyers have a lot of bargaining power right now and that will continue through the year.”
The report stated Florida is experiencing noticeable deceleration in appreciation. Between the first quarter of 2006 and first quarter of 2007, the average value of a home was down of 4.3 percent statewide.
That’s the lowest since the 1998-1999 fourth quarter periods.
Thirteen of the 18 Florida cities on the list experienced price declines between the fourth quarter of 2006 and the first quarter of 2007.
The situation is worse to the north, as appreciation fell during past four-quarters in Michigan and Massachusetts.
Despite slower appreciation, Wetzel said for those buyers who took out Florida mortgages before the housing boom, news is a positive as buyers stay in their homes an average of 5-7 years.
Diane Volkart, a Realtor with Caldwell Banker Residential Real Estate in Port St. Lucie, said that motivated sellers are more apt to throw in some extras to win a sale.
“Furniture is not going to make or break a sale like a patio or washer and dryer,” Volkart said. A home warranty, now that’s a good offer because it’s like giving the buyer an insurance policy — there’s so much more negotiating room now than there was two years ago.”
The House Price Index is published on a quarterly basis and tracks average price changes through the repeat sales or Florida mortgage refinancing of the same single-family properties, and on analysis of data obtained by Fannie Mae and Freddie Mac from more than 32 million repeat transactions.
SOURCE: TCPalm.com
