Florida Housing Market ‘Continued To Adjust’ In June
The Florida realtors have their June numbers out. “Rising mortgage rates, rising inventory levels, rising insurance premiums and higher energy costs impacted Florida’s housing sector in June, as the state’s housing market continued to adjust. A total of 18,089 existing single-family homes sold statewide last month, a decrease of 29 percent from the 25,552 homes sold during the previous June, according to FAR.”
“Looking to Florida’s existing condominium market, sales of existing condos also decreased in June, with a total of 5,241 condos sold statewide compared to 8,109 in June 2005 for a 35 percent decrease.”
“Sales of existing homes in Palm Beach County and the Treasure Coast posted their seventh straight monthly decline in June, emphatically breaking the boom of five bustling years of real-estate sales, according to a FAR report.”
“Sales in Palm Beach County plunged 39 percent, to 947 from 1,551 in June 2005, according to the report. In the Treasure Coast, sales declined 33 percent, to 513 from 768 in June 2005. Meanwhile, Palm Beach County inventory is up. There’s an eight-month supply of existing homes at the current sales pace, according to industry analyst Thomas Lawler.”
“Indeed, every market in the state posted double-digit sales drops last month, save for two smaller cities: Tallahassee, down 7 percent, and Jacksonville, down 3 percent, the report shows.”
“Conditions in the condo market are deteriorating faster than in the market for single-family homes. Existing-condo sales in June fell 41 percent in Palm Beach County, 50 percent in the Treasure Coast and 35 percent statewide, year over year.”
“Median home sales prices in both Lee and Collier counties dipped last month compared to June 2005. With builders cutting back on new inventory release and offering incentives to jump-start slowing sales of new homes, it has forced sellers of existing homes to bring down their expectations as well.”
“Realtors sold 57 condos last month, which is down from 109 in June 2005. Inventory levels in Lee County that had started to show just the slightest stabilization also grew last month, up to about 12,053 listings and 1,343 pending in single-family. That is a 12.97-month supply of single-family homes. There are 7,387 condos listed for sale and 591 pending in condos, a 14.17-month supply.”
“Home sales continued to fall in the double digits in Southwest Florida and prices were giving ground. Sales were down 40 percent in the Sarasota-Bradenton market in June. Homes in the Charlotte County-North Port market dropped 34 percent.”
“The median sales price of an existing home in Lee County fell in June, the first year-over-year decline in seven years, according data released today. The median sales price of an existing single-family home in Lee County was down five percent from $281,000 in June 2005. Just 891 single-family homes in Lee County were sold by Realtors in June, down 31 percent from the same period last year.”
“Collier County saw even steeper declines, with the median selling price falling 8 percent to $451,500 and sales fell 48 percent to 274. Condominium sales were also down 66 percent in Lee. Collier condominium sales fell 48 percent to just 57 sales.”
The second link from the top includes tables with detail on each metro area. In case you missed this one posted this morning in the comments:
‘With sales still sluggish in the investor-laden Martin’s Crossing development on Kanner Highway, builder Lennar Corp. has resorted to dramatic discounts.
Real estate agent Howard Fishman’s friend and client closed last week on a five-bedroom model in the community. The price: $315,000. The buyer..months ago walked away from a $38,000 deposit on a $395,000 three-bedroom Martin’s Crossing house. The loss smarted then, but now the investment could prove a boon: Lennar, eager to sell homes, let him use that deposit toward the new contract, Fishman said. ‘So as far as Lennar is concerned, they truly sold this house for $277,000,’ he said. The same five-bedroom house was originally contracted for $490,000. ‘That’s only the tip of the iceberg of what’s going on,’ he said of the price-slashing.’
Wow, what a hugh discount. Wish we would see some of that here in CA. Some speculators must of gotten wiped out on the price cutting.
Hey Norcal, what’s up. I’m sure you will see some of that discounting in most of the CA boonie communities. It’s probably happening as we speak.
Hi ockurt,
good to see active on this blog again. Yes, we will see that in the boonies where they are trying (were?) trying to sell homes for $800-900K that over 70 miles from SF. Like to see more discounts in the proper Bay Area though. Will just need to wait.
No, they got another $315,000 out of the buyer that had already forked over $38,000. Fishman is so bad at math he’s a realtor.
That’s what I thought. I assume he paid $315k + 38k = $353k, not $277k.
I’m reading it as $277,000 + $38,000 deposit = $315,000 sales price.
East is right.
The return of the 14% down. And no, have’nt seen or heard of 30% discount in California yet. But coming to a city near me…
New Hightower FL report out:
http://www.hightower-realty.com/market-report-july-2006.htm
Looks pretty slow in those parts.
I stop by Panera Bread every other morning to get an iced tea and a bagel while I read my WSJ. Last summer the place was full of 22-yo realtors who thought they were geniuses, discussion deals on their cell phones loudly to show off how well they were doing. Then they would get into their Lexus SUV and drive away.
It is markedly different today. There are very few people in there in the morning, and I haven’t seen a realtor on the cell phone since April. Even then he was telling someone that he is going to look for new opportunities becuase nothing is moving. He blamed Ben “the fed dude” for raising rates and ruining his livelihood. I was close to giving him a good schooling in simple economics but decided to refrain. The best (worst?) part is the BMW this particular guy was driving had a ‘FOR SALE’ sign in the back window.
Classic. Sometimes I feel like “educating” people like that…but most of the time they don’t listen so why ruin your breakfast
Someone opened the “real estate conversation” door at the party I was at in San Jose over the weekend, so that allowed me to move in for the kill. I gave my point of view with absolutely NO ONE disputing what I was saying. Nodding of heads, etc. One guy, however, was a little quiet. I found out later (we were exchanging business cards) that he was a commercial real estate broker.
Priceless…..
BayQT~
I’m still looked at as someone in denial if I open my mouth on the subject so I bite my tongue verrrrrrry hard these days.
Yeah, you never know who might be listening. I was at my gal’s work party the other week and that “door” opened for me as well. I try not to talk about it because while I find the topic interesting, my delivery isn’t so tactful when drinking. Found out the wife’s boss just bought a condo in Torrance! Doh!
Ouch!
BayQt~
This fat coworker of mine who spends money she doesn’t had said to me at lunch today “it’s officially a buyer’s market now, so i’m going to buy another house”. i told her to wait a year or two and see where prices go, and she got defensive. She said it was going to be something she holds onto for 10 years or so as an “investment” so waiting a year or two would make “no difference”. I just gave up. Some people won’t learn until they’ve lost it all.
If not professionally dangerous, it’s still - and increasingly - socially dangerous to Open Your Big Mouth.
Husband’s co-worker and family moved here from the SF Bay Area, bought land, had a custom build. I’ve been experiencing the odd jealousy pang, having bought and sold our residence in California at the wrong times in the ’90s, but hey, good for them, set for life. Right?
Wrong. They bought and built with the Bay Area house still on the market. Oh, and as a matter of fact they DO have a big boat back there to unload, too.
When I suggested referring his co-worker to this site for their own planning and protection, my husband showed the good sense to suggest that being the bearer of bad tidings would (1) probably just depress co-worker and wife, without changing the likelihood of their actions; and (2) likely result in deliterious future social interactions.
Go ahead and publicize your Schaundfreudgeasba$@… (can’t spell it) - if you don’t mind being the target of white hot undying hatred. For my part and with due caution, I keep in mind that some of the FBers I know are probably about a finger’s width from going postal to start with.
wise words. but it’s so hard when you see ignorance combined with arrogance… it takes a lot of self-control to keep quiet.
I was jelous of my former college roommate when he bought a house in the late 80s while I was still living in an apartment with roommates. I ceased being jelous when he was waiting for foreclosure a few years later. It made me VERY paranoid about signing up for a mortgage. I waited and saved for longer than I needed to or was advantageous before I bought.
Is this the one in Tampa? On West Shore and Kennedy
That one is the WORST! Talk about Yuppies.
Tom I go there all the time….I agree…There is hardly a line there in the morning any more….Nice and quiet now!!
Time to short Panera stock.
Correct - chock full of yuppies.
It’s too bad these people had such a headstart to get out with the media-orchestrated “soft-landing” leaving Joe Sixpacks holding the bag.
Some of them are holding BIG bags…I see ALOT of “owner/agent” listings. For fun, I checked one agent guy out, who had his own 4 properties for sale. He has been discounting the crap outta them…some, he has reduced by 25%…but, when I checked his other listings, you know, the people who are supposed to trust him, those listings were still insanely overpriced and not one has had a price reduction.
So, this jackass is trying like hell to unload his stuff, while his clients lanquish on the MLS at ridiculous prices. Obviously, he is not advising them to cut prices, since that might take away from his desperate moves to sell his!
And he ain’t the only one!
That is how people get killed at soccer games.
Similar thing happened to me today at lunch at Panera (Roast Beef on Asiago bread :-)) while reading the WSJ article on Countrywides option ARM originations as compared to WAMU. Page C3…
A group of 50ish RE broker were having lunch across from me discussing how to get their North Port lot inventory to move… Alot of the blame was on the auction of lots that the city held in winter of 06′
It’s gotten so bad down here in Fort Myers that realtors/brokers have taken to spamming the News-press online forums with thier ‘once in a life time deals’. I hold very little back.
The news press forums kill me, but if you want to see something funny drive down delprado blvd to US 41 and it will tell the whole story, 1.25% and free gift signs for 4 miles
This afternoon I was hanging out behind the dumpster at my nearby 7/11, hope to down a solitary 40-ounce or two before starting my day, when I was interrupted by a raggety couple pushing a shopping cart filled with aluminum cans.
In a bitter falsetto, the man said, “‘Suzanne researched this’, you said. ‘We can do this.’ You nagged me into making the second worst decision of my life, after marrying a harpy like you.”
“Well if you’d have been half the man the kid’s soccer coach is, you would’ve at least tried to talk me out it. Remember when the man of the house ACTED like the man of the house?”
“Oh, shut up and pick up cans. Another 20 pounds of cans and we can book a room in the YMCA tonight.”
Classic! LOL
40 oz to freedom, baby!
Was it “Olde English 8000″ or Schlitz Malt for breakfast ?
I’m not sure why the St John’s county numbers are never “available” when these figures come out each month. St John’s county is where the majority of the “growth” is occuring in Jacksonville. Thousands of existing homes are sitting in St John’s county collecting dust. I’m wondering if these numbers are never published on purpose to skew the numbers. Does anyone know why this county never reports?
Probably to skew numbers. I know someone who just bought a 900sq/ft condo there for about 350K in St. Augustine. Insane.
Things get crazy when they overlook the ocean. Move the same condo back two blocks and it probably goes for less than $200k brand new.
This one’s 24 years old.
“In Palm Beach County, the median price - half cost more and half cost less - of an existing single-family home fell to $405,500 from $406,800 in the same month a year ago, the report stated.”
And there you have it folks. We have the first YOY DECLINE in price.
Let the panic begin.
From the Naples link:
‘Collier existing single-family homes sold for a median of $451,000 in June — down 8 percent from June 2005..The June median price is down from a May median of $507,900, which was just slightly up from the May 2005 level. Last months’s median price was the lowest for a single-family home in Collier since March 2005, when the price was $430,800.’
‘The median sales price for a single-family home in the Fort Myers-Cape Coral area fell to $268,800 — down 5 percent from a year ago and about $20,000 from $286,500 in May of this year. Median condo prices took a dive in Lee County to $250,000, down 7 percent from $270,200 a year ago.’
The next 6 months will be very interesting. Those that need to sell will sell for a lot less than listed prices. Believe that housing will become affordable again within 12 months.
consider this. with this govt and its lack to see issues coming ahead, the housing market wont adjust until at lest summer 2007. if we have the same (elephants) running the show, the damage will be severe through 2008. the donkeys dont have an answer either, but they will ask some questions they havent had in a long time. look when g bushy got into the white house and greedman start playing with the economy. the economy needed help and he allowed americans to become debtors faster than any other time in us history. the 30 to 40 year debts, including the fact that bankrupcy dont protect you no more, that is alot of money to pay for the war and other debts the govt is holding. now that everyone is in debt, i need to check my savings account and see my returns finally go up.
The Chicago condo market dropped 21% from 2Q last year reflecting the drop seen in FL but as everyone who bought in Chicago would have you believe, “Demand is still strong so prices prices won’t drop in Chicago.” Riiiiiight!
Do you have a link? I used to live in Chicago and like to keep up with the market there.
Thanks.
here you go
http://chicagobusiness.com/cgi-bin/news.pl?id=21437
These numbers must be scaring the crap out of the builders. Before today I have never received a phone call from a home builder. Today I received three cold calls between 5:00 and 5:45 about “incentives” that are happening from now until the end of the month. All of them saying, “All offers will be considered!”
Oh, the sheer pain of it all!!
This is priceless
“The last few weeks have continued to be very disappointing for sellers, with no sign of any increase in the number of potential buyers. Inventory has continued to rise, and a lot of sellers are now reducing their prices substantially in the hope of attracting interest from the few buyers that there are. While there is still no evidence in the most recent statistics that actual contract prices being achieved are falling yet, it is inevitable that this will happen if the present situation continues for much longer. Buyers are looking at only the best priced homes, and homes that are priced higher are getting no viewings at all.”
I am looking for a new place to rent. I walked by a place I like tonight (near my current rental) and decided to research it on the appraisers website. I found the current owner and it looks like the fair-market value, according to the website is lower, in all circumstances, than what the units were sold for in 2003. It’s generally a $20,000 difference. I found someone who really took a haircut, buying a place for $165k and selling it for $58k in a foreclousure 6 months later.
I’m going to try and find a FB to rent from for the next couple years.
Looking for a new place to rent, also. Craigslist in the Tampa area is a complete waste of time, IMHO. Rents are almost like California, but I notice the nicer apartment complexes have more realistic rents, because that’s the business they’ve always been in. For the FBs, its amateur time in the rental department. The new trend for desperate FBs in Florida is to rent a room in their overpriced cribs for close to what an apartment would be. Some have transformed parts of their homes into “efficiencies”, which are probably illegal. I’ve got two words for them: Puhh Thetic
This will be the beginning of McMansion being partitioned into multi-family dwellings. Once again it’ll be fashionable to live in a smaller home, at least you’re not sharing it with anyone. Philly has a ton of 1920s McMansions that were partitioned into twins and whatnot. That all look like shit now. Back to the future.
http://www.bloomberg.com/news/av/
Then click on “Low of FTN Financial Says Fed Growth Forecast Is Way Too High”. (Christopher Low) This is an Audio File, warning it is 15 minutes long, first 8 min or so about housing. Demonstrating bearishness/concern about housing while hedging his bets. Slowly but surely they are stepping up to the plate.
Good discussion at that link.
I was particularly interested in the comment that talked about how the Fed may not understand the impact of broken home equity ATM may have on the economy. And the use of 100% leverage in a sliding market.
Sounded like the guy is an HBB fan.
The housing bust is all over the local news tonight, the news anchors are hyperventilating about it all over the place. Also on AOL, taken from the Wall Street Journal. You are right, Ben, it’s finally official and the cat is out of the bag. And, I think this is really what it is going to take for sellers to finally drop trow. Sheeple have to see it on the teevee and in “respectible” newspapers for it to be a fact. Can you say “BAAAAAA”?
Question for those in the know: I have in-laws, now seniors, who bought into the creepy Villages in Florida about four years ago. Are they FBs, or is that neo-plantation holding its own against the onset of reality? Could they sell if they had to in this market?
Depends on what their expectations are. Even in this market, anything priced reasonably will sell. In the Florida retirement communities it is slightly different, people often look to buy if they have friends living there and if there are amenities for those of a certain age. And of course, if the price is right.
My folks live in the Villages. Just last week I checked things out for myself. The paper for rentals is getting bigger. Isn’t too unusual for summer though. Your in-laws should be fine since they bought 4 years ago. The prices have increased greatly over the last two years. If they are in a villa or tiny cottage, they may fare worse than if they are in one of the ranch homes or designer homes. The villas are the ones that are mostly snowbirds and rentals. People who bought for the winters hoping to finance it by renting during off season probably won’t do well either.
On my parents street, there are no rentals, no houses for sale and most (everyone that I know) are year round residents. I think the Villages will fare fine in this mess. As my parents and their friends call it Disney for seniors. I question why you call it creepy? Where else can they live their final years with everything they need right outside their front door. Golf courses galore, pools, clubhouses, social activities, hobby clubs, state clubs, clubs for retired engineers to former Ohio residents club…… bus trips, cruises, heck, they even have a nice bus to drive them to the airport. My folks love cheering on the local Villages football team to dancing every night at the town square. My kids love to visit as during the summer months and holidays, they have activities for the kids and grandparents. They love riding around in the golf cart and the pools. Most of all they love going to the town square. Maybe most seniors choose it because it reminds them of the small town quality they remember from their youth.
It is a good fit for many older folks. There is something for everyone. One thing that impresses me about the place is that the younger seniors take care of the older seniors by driving them to appointmenst, bringing food, visiting…… Much better than growing old in Ohio and waiting for your family to visit you once a week…… that’s why I don’t think you need to worry about your in laws investment in Creepville. Of course if they are like my folks, they bought for the lifestyle not the investment.
Thanks to both of you for the replies.
Lizziebeth–I see your point and it is perfectly understandable that some people want to live as you describe. Viewing a “Disney for seniors” as creepy depends, of course, entirely on your point of reference. To me it’s a right wing Stepford; to you and indeed to my in-laws, something else.
Huge foreclosure investor in SoFla is unloading a bunch of property at absolute auction this weekend. Desperate times call for desperate measures?
http://www.123sold.com/ph/realtor-mls-search-results.html
I think the vultures may have eaten some bad carrion. This isn’t your grandfather’s housing bubble.
Talk about Sh!t hole houses. Most of them are in crack neighborhoods. I am going to attend just to see what type of bids these houses receive. I would not be surprised if there are some shills placed in the crowd to juice up the price.
I subscribe to Mark Zilbert’s enewsletter. He’s the guy that runs http://www.condoflip.com
this is from the one i got yesterday:
I just wanted to drop you a quick note.
Tonight, Miami came alive, once again, as the EAST COAST premiere of MIAMI VICE: THE MOVIE took place on our always-popular Lincoln Rd. I was thrilled that the star-studded, red-carpet event took place right next door to the ZILBERT REALTY headquarters! With SUPERBOWL coming this next football season, Miami should be in everyone’s eyes for quite some time to come!
We think that this continuing surge in popularity will drive real estate buyers back into a buying frenzy, which which has already started! This year, however, it’s a buyers market, and we see some amazing deals out there.
‘Talk about Sh!t hole houses. Most of them are in crack neighborhoods. I am going to attend just to see what type of bids these houses receive. I would not be surprised if there are some shills placed in the crowd to juice up the price. ‘
Many are nice homes too but it doesn’t matter if the market for flipping is dead, you can’t rent for anywhere near your total monthly payments and your credit lines are now near 9% and not the 4% of two years ago. These guys were pros and prolific flippers for years buying below market and even they seem to be in some serious trouble now. Cash drains in Florida are incredible these days with the skyrocketing property taxes and insurance added in to the mix.
The title reminds me of the story a friends aunt told about Hunter S. Thompson “adjusting” the lighting with a .45. You go through alot of lamps and drywall that way.