Any Signs Of Life In The Florida Real Estate Market?

Just like the rest of the country, the Florida real estate market is trying to figure out exactly how this week's Washington DC news about home owner bail-outs will work. It looks as if we'll have to wait for a couple of weeks to see exactly what the rules and regulations will be:

"Who won't be helped by housing fix? . . . . The jobless and many of those who owe far more than home is worth won't benefit much from Obama's foreclosure prevention plan."

Source: CNN

"The program, which begins March 4, allows borrowers to refinance into 15-year or 30-year fixed-rate mortgages at the current market rate, which hovers around 5%. This could benefit those whose mortgages carry higher rates or those in adjustable-rate or interest-only loans, groups of people who could see big rate spikes in the future. The plan, however, will not reduce the loan balance."

Source: CNN

And in the meantime, there are signs of growing unrest about the Stimulus Bill (or "Generational Theft Act", as John McCain and others have described it):

"It’s been called “the rant heard around the world,” after The Drudge Report linked to the video with a screaming red headline. However Rick Santelli may have given CNBC viewers a preview of what effects Obamanomics will have on the populace . . . . On CNBC’s “Squawk Box” Feb. 19, the Chicago Mercantile Exchange floor reporter, along with several traders, expressed his outrage about President Barack Obama’s plan to “spread the wealth” for people that didn’t deserve it. He said a stimulus should go to people who live responsibly rather than some sort of housing bailout to people that lived irresponsibly."

Source: businessandmedia.org

But in the middle of all this turmoil, how is the Florida real estate market doing?

Well, there are some signs of life:

"New contracts: for the three months to January 2009 there were 5797 new contacts, compared with 3455 in the same period last year. A 67.8% increase . ."

Source: Orlando Realtors data

And some professionals are seeing positive signs:

"It seems that all of the people who WANTED to buy but were just waiting are entering the market! . . Miami and Florida was one of the first areas to be hit by the slow down, so I am hoping that our turnaround will be a sign for better things to come for our area and the rest of the country."

Source: activerain.com

But the market is, of course, still heavily biased in favor of buyers:

"Our real estate market here in Brevard County is flooded with short sales and foreclosure properties. There are some absolutely fantastic deals for buyers today. There are short sales at under $100,000 that are 1700 square foot homes, 3 bedroom, 2 bath, 2 car garages, on .23 acres, 2-3 years old, many never lived in. The deals are phenomenal!"

Source: activerain.com

And there are real doubts held by some observers that the steps already taken will lead to a recovery:

"Foreclosure Glut Clogging Courtrooms; Will Obama Make it Better or Worse? . . . Am I alone in thinking that perhaps the real bailout is for lawyers and judges to handle all the upcoming foreclosure cases that result from this plan?"

Source: biggerpockets.com

The conclusion? There's obviously a long way to go yet before Florida real estate regains even a little of it's attraction for many buyers.

Is Naples Florida Real Estate On The Mend?

Some recent news reports about Naples Florida real estate suggest that an upturn may be on the way. It may be too early to celebrate yet, but there are actually a few positive signs out there - for example, consider these:

• Coldwell Banker, February 2009: "The third highest sales price for Florida was in Longboat Key at $3,300,000. Three of the top sales in the Southwest Florida area include Cape Coral (at $1,825,000), Marco Island (at $1,250,000) and Naples (at $1,100,000). These international buyers are from Canada, the U.K. and India."

• Toll Brothers, January 2009: "FHA mortgages . . . . Naples was approved with the highest limit in the state, ranking higher even than Palm Beach. Naples has maintained strong market values even in a slumping economy. We are seeing buyers from Canada, the U.K, France, Germany, India, Denmark and Egypt buying property in our area."

• Bonita Bay Group press release, January 2009: "Buy-Now Urgency Hits The Naples, Florida Real Estate Market . . . . the 2008 sale of 11 multi-million-dollar model homes in its upscale Mediterra community to the market's realization that now is the time to buy."

Ok, ok, so they're all builders or Realtors and they have a vested interest in talking the market up. How about banks in South West Florida?

• News-Press.com, February 2009: "Some SW Fla. banks see light at end of the tunnel . . . the pace of new foreclosures is slowing and housing prices may have bottomed out . . . The median price of a house sold with the assistance of a Realtor increased."

So Naples Florida real estate may not be back to the boom times of a few years ago, and we may need to wait and see how the latest stimulus / bail out / financial contortions play out over the next few weeks. But don't you think that to some extent the gloom can be self perpetuating? After all, if overseas buyers are still to be found, even with the dollar exchange rate at the level it is, just imagine what will happen when the expected dollar weakness materializes later this year - could another boom follow?

So if you really believe in Naples Florida real estate, remember how fortunate we are to live in this climate, stay positive and keep working hard!