Florida Real Estate & Home Prices Post Record Drops
December 27, 2007
According to an article in USA Today, home prices in 11 large metropolitan areas posted record declines in October. According to data released Wednesday, this represents more evidence that 2007 was one of the worst real estate markets in a really long time.
The S&P/Case-Shiller composite index of home prices in 20 major cities slid 6.1% compared with October of last year. The biggest home price drops were in Miami, (down 12.4%) and the metro Tampa real estate market where prices have dropped by 11.8% since October of 2006.
Detroit (down 11.2%) and San Diego (down by 11.1%) were close behind in the size of thier respective average home price drops.
Some areas where prices have been holding steady until now also experienced drops. Prices in Atlanta (down 6.7%) and Dallas (down by 0.1%) dipped for the first time during the current downturn.
This was the 10th month in a row that the index has shown negative annual price comparisons.
The primary cause of the price downturn is the enormous inventory of homes for sale right now. There is nearly a year's supply of homes for sale on the market. The tightening of the mortgage market where lenders have gotten burned by sub-prime mortgages is exacerbating the situation. Those few willing to buy a home at this point find it difficult to get mortgage approval. Except for those who qualify for a VA loan, there are virtually no mortages available
without at least a 5% down payment.
The last time home prices dropped by more than this was in 1941, just before the U.S. entered World War II.
"It is clearly a 'buyer's market' and those willing to spend the time looking can find real bargains in the Sarasota real estate market," says Judie Beger of Sky Sothebys Realty. "This may be your best time to contact a Sarasota Realtor and begin shopping for that Florida home or condo you've been dreaming about" she added.
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