Home Prices Drop

Fort Myers News Press
The median sales price - half of the homes sold for more and half sold for less - was $253,900, down 5 percent from $268,000 a year ago in Lee County.
Things aren't that bad.. In June 2005 the median price of a single family home was $281,000 up from $191,000 in June 2004. So last month's median price is still about 33 percent higher than just three years ago.
Condominium sales were up slightly in the month, with 194 transactions, up from 183 a year ago. The median prices fell about 5 percent, however, from $269,100, in June 2006 to $254,800 last month.
Nationally, the National Association of Realtors reported that sales of existing homes dropped by 3.8% in June , the slowest sales pace in 4 1/2 years. However, the median price of a new home edged up slightly by 0.1 percent increase from the sales price a year ago. That was the first year over year price increase in 11 months.

Home Prices expected to bounce back

Associated Press
Prices of existing and new homes are expected to bounce back next year (2008) after a dreary 2007, a real estate trade group said Wednesday.
The National association of Realtors lowered it's estimate of home sales for 2007 predicting existing home sales will decline 5.6 percent this year to 6.1 million while sales of new homes will plummet 17.7 percent.
Existing home prices are expected to gain 1.8 percent in 2008.
"Markets that sharply reduce new construction in 2007 will generally experience respectable price increases in 2008" Lawrence Yun, the Realtors' senior economist, said in a release. " Buyers now have an overwhelming advantage given the wide selection of homes available in many markets".
In SW Florida we have seen many new construction sites halted or slowed down greatly. This will help prices recover next year in our market.

Foreclosures still climbing

Fort Myers News Press
Lee County foreclosures kept rising last month, with Cape Coral leading the way. June's foreclosures totaled 968, up from May's 867, according to the Lee County Clerk of Court.
It was a contination of a long run up in foreclosures as the real estate market has cooled - the rate in April 2006, before the number took off, was only 131.
Many of the properties going into foreclosures were single family homes owned by investors.