South Florida homes sales were lackluster in June, continuing the region's housing slowdown. BY MATTHEW HAGGMAN SOURCE: Florida Association of Realtors
In the past six years, Roxanne Arnold quit her job and started flipping houses instead, buying and selling about 20 homes. But now a three-bedroom Fort Lauderdale town house she owns has sat on the market for more than year, and things are so slow that she just got a part-time job. ''Everyone that needs a home to live in has bought one, and the people that still need a home can't afford these prices,'' she said. 'I would not call it a buyers' or sellers' market, because there is no market.'' Indeed, home sales numbers released Tuesday by the Florida Association of Realtors showed that South Florida's housing market has stalled as it trudges through the summer months. Many builders and brokers have already labeled 2006 a year to forget, and the residential real estate markets' performance in June did little to change that. Home prices for June were flat, and sales were almost unchanged from May. Compared to a year ago, prices were flat or up slightly, while sales were down sharply. A median-priced single-family home in June cost $378,000 in Miami-Dade and $377,400 in Broward, compared to $379,700 and $379,800 in May. The median is the point at which half of homes cost more and half cost less. A median-priced condo in June went for $257,600 in Miami-Dade and $212,300 in Broward, compared to $250,900 and $212,300 in May. The Florida Association of Realtors does not track the Florida Keys. The market slowdown -- which some argue started last fall -- is due to prices soaring beyond the reach of too many buyers, investors fleeing the market and mortgage rates creeping up. Last week the 30-year, fixed rate mortgage increased from 6.74 percent to 6.80 percent, according to Freddie Mac, which buys mortgages from banks. Skyrocketing windstorm insurance rates and the specter of higher property taxes have chilled the market further. But many sellers refuse to lower prices, clinging to the notion that the roaring market will return. Buyers, in turn, are willing to wait it out for a better deal. The result is a standoff between buyers and sellers that has resulted in the inventory of homes for sale more than tripling in the last year. Some 54,691 homes were listed for sale in June, compared to 15,830 a year ago. That is also up from May, when 53,933 were listed for sale. Sales of single-family homes and condominiums sold in June were down more than 30 percent from a year ago. Compared to May, sales for houses were up 1 percent in Miami-Dade and unchanged in Broward; condos were down four percent in Miami-Dade and down two percent in Broward. Some market watchers, such as National Association of Realtors economist David Lereah, say activity will pick up once sellers lower their prices. The mild South Florida price increases in June lead some to think sellers are starting to do just that. ''We are starting to see a little more price drops,'' said Gus Rubio, senior vice president at Coldwell Banker, the biggest residential brokerage in South Florida. ``Sellers are starting to understand they have to be realistic.'' Rubio noted that many more condos are slated to come onto the market, adding more housing inventory and perhaps extending the slowdown. Lennar Homes, based in Miami, recently warned it may take a while for the overhang of investor-owned properties to be absorbed. But others contend the market may recover sooner rather than later. ''I am advising all sellers not to blink,'' said Craig Studnicky, president of International Sales Group in Aventura, which primarily sells new condos but also existing property. ``If 1,500 people a day are moving to Florida and we have a mild hurricane season, then I think the demand curve could catch up by fall.'' Condo owner Arnold is willing to wait -- although not much longer. Already, she has come down from her initial asking price of $340,000 to $319,000. And she notes owners of similar units nearby are dropping prices to $298,000. ''You can't be greedy these days,'' she said. ``The old market was just a freak thing. Everyone who hopped on the bandwagon thinking they would make a fortune probably did, but they are out of their minds if they think it will happen again.''

 

What did you think of this article?

Liked
Disliked
No Opinion