Sale prices move up, inventory goes down

Bleak reports continue to surface about the condition of housing markets across the nation.

In Collier County, one in every 717 homeowners filed for foreclosure, a decrease of 37.99 percent compared to December 2010 and a decrease of 72.6 percent from January 2010.

Lee County dropped to 19th in the state for foreclosure filings. One home of every 428 borrowers were foreclosed, a decrease of 35.4 percent from December 2010 and a decrease of 71.74 percent when compared to January 2010. For the fourth consecutive month, RealtyTrac is reporting a decrease in Florida foreclosure activity.

Single-family housing permits increased in 2010 by 23 percent, but new home construction remains extremely flat. This is good news for existing inventory. As visitors from the north continue to experience extreme winter weather conditions, we may experience a greater increase in home sales throughout the rest of tourist season.

Shadows ahead?

Many are expressing fear over perceived shadow inventory, as real estate prognosticators are envisioning another wave of ominous foreclosures that may not be realized for several years. Seriously delinquent homeowners may add to this list, but the Lee County clerk of court reports that we've hit bottom, according to an article in the Lehigh Acres Citizen. Year over year, 12,000 foreclosures have been cleared and the expectation is that they will keep moving off bank books.

Economic indicators, as we've discussed previously, are still on the rise.

The Regional Economic Research Institute at Florida Gulf Coast University reported increased GDP growth as a result of personal consumption expenditures, exports and nonresidential investment.

Steadily decreasing unemployment rates in the area - despite record high percentages - indicate job growth that is projected to continue throughout 2014.

Consumer confidence for the nation moved down slightly from 74.5 to 74.2, but Florida consumer confidence increased to 77 in January from 70 in December.

RERI reports that the biggest increases were in perceptions of economic conditions in the short and long term, which has to do with sustained gains in the stock market over the past two months, according to Florida CCI survey director Christ McCarthy.

Seasonal activity is robust, given the extreme weather situations in the North. While it's far too early to confirm, indications are moving in the positive direction.

Despite continued negative trends nationally and statewide, Southwest Florida may be rebounding, which supports my "first in, first out" theory. In the midst of Florida's beautiful weather, the perfect storm is brewing in Southwest Florida's housing market.

It's a welcome change in forecast.  Search Fort Myers Real Estate
Post a Comment