Since 2006, the average US home price has declined by nearly 33%. These downward trends have contributed to panicked owners selling too quickly and an increase in available homes on the market. According to market watcher, Fiserv, home prices in the US will rise at 4% per year for the next five years. Fiserv sees market prices stabilizing by the end of summer and then climbing quickly. The driving force behind the rising home prices will be investors with first-time and trade-up buyers to follow.
In a separate study by market researcher, Core Logic, home prices from February to March 2012 were analyzed. This study yielded a 0.6 percent increase in the average US home price. This was the first month-over-month increase since July 2011. The two biggest factors in this upward trend include good affordability and the declining number of inventories.
Furthermore, a shift in economic conditions has certainly played a critical role in the housing market. “The Fiserv forecast, done with Moody’s Analytics, assumes steady economic growth with no major shocks. Markets hardest hit by foreclosures will show the biggest five-year increases in home appreciation” (Florida Realtors).
While this is certainly great news for the overall economy and will drastically improve housing conditions in the United States, what does it mean for the Sunshine State? According to Realtor.com, “Florida has more cities than any other state that show the strongest signs of a housing recovery.” Local markets will remain dependent on the economy and how fast lenders can dispose of distressed properties.
Locally, the first quarter of 2012 produced great results for the sale price of homes in Charlotte and Sarasota Counties. The Suncoasteam report, which includes single-family homes with 3 bedrooms, 2 bathrooms, 2 car garage, and a pool, returned results that are very encouraging for home buyers. From January 2012 to March of 2012, average home prices for these types of homes in Charlotte and Sarasota Counties went from $183,848 to $221,661. Concurrently, the number of these homes sold rose from 1,020 to 1,517. Please click here to conduct your own sold report for a particular area.
The improving economic conditions, a decreasing inventory of homes, and rising home prices are positive indicators of the housing market recovery. With a predicted 4% growth year-over-year for the next five years, the dark days of low, 33% declines in home prices seem to be behind us. Though investors are expected to build the momentum for rising home prices, the average consumer looking to buy for the first time or trade-up, will be responsible for helping the surge continue. For prospective buyers who have been on the fence for so long, the days of lying in wait may soon be coming to an end. How much longer will the great deals that are out there now remain available? If this forecast holds true, it won’t be much longer.
If you have interest in property on Florida’s Gulf Coast, please click here, Southwest Florida Real Estate For Sale. For more information on a specific property, please contact Jim Mulligan, Suncoasteam Realty at 941-235-7474 orjim@suncoasteam.com.