Real Estate Matters

One of Florida's best know economist recently said that the real estate market in the region has stabilized.  Hank Fishkind made his predictions for this region as part of a 33-county economic report.  In November, Sarasota-Bradenton Realtors sold twice as many homes than in the Miami area.  The median sale price in November was $267,700, down 4 percent from a year earlier, but an improvement from $244,300 in September and $263,900 in October. Interestingly, Fishkind projects moderate rates of growth for population and employment in Sarasota and Manatee counties between now and 2010.  These predictions mirror my previous comments relating to buyer activity and interest improving in the Sarasota-Bradenton area.  However, Fishkind said that speculative investing in the real estate market occurred in the area between 2003 and 2006 and resulted in an excessive amount of new homes in both markets.  A recovery in housing starts for both counties, however, is expected to begin in 2008, he said. The economist's forecast is predicated on the assumption that the national economy, while definitely in slow motion, will narrowly avert a full-blown recession. 

Continued lower interest rates are also having a positive effect on the real estate market.  Jonathan Santiago, CMPS, a local mortgage broker with Kroboth and Helm, says in his latest newsletter that  "Mortgage Rates reach two and a half year lows! Thanks to a very healthy mortgage bond market, mortgage rates have come down to levels not seen in 2 and 1/2 years! Clearly, if you have clients who have been waiting till rates came down, now is the time to let them know that 30-year fixed rates can be had in the 5% range! "