Has the Florida Real Estate Market Hit Bottom?
Mar 24th, 2010 by admin
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You really want to retire to Florida and buy a retirement home, but you’ve been waiting until the real estate market bottoms out. How will you know when this has happened?
The honest answer is that you won’t know the exact time and neither will anyone else. However, there are some indicators that will help guide you and give you some confidence to time your purchase.
One strategy is to look at the median asking prices for homes and condos in several Florida metropolitan areas over the past 4 years. Then look at the housing inventory data for these areas over the same time period.
One expects that at the market bottom, the asking prices for properties would stop decreasing or “bottom out”. Also, inventory levels may be expected to level out or decrease as prices become so attractive that demand increases.
Let’s look at beautiful Cape Coral, Florida:
- Median asking prices have shown a steady decline over the last four years to the point where they are now only 53% of what they were in 2006!
- Inventory levels peaked in 2008 and have declined substantially since then.
- The median asking price has dropped from $376,920 to $199,000 in the past 4 years!
Hence, barring a collapse of the national economy, most pundits don’t see any further large declines in housing prices. Actually, there are sporadic signs that the housing market is already turning around.
Florida is indeed on sale. The state abounds with tons of incredible properties in every price range.
See the complete chart of median values for all metro areas and full analysis in the pages of the newly updated “The Florida Retirement Book – An Insider’s Guide”.
Take advantage of special New 2010, 7th Edition pricing and read it cover to cover RISK FREE by clicking the book below or visiting Florida Retirement Info:
