Did You Know?

The average price per unit for multifamily dwellings in Phoenix is $100,000-$149,999 & in West Palm Beach it’s $150,000-$199,000?

Conditions in the Florida Real Estate “Market”

There are so many different opinions about the state of the real estate market. You know what they say about opinions. Everybody’s got one. There is so much subterfuge by so many people in positions of authority that it is very discouraging when you do not have the experience or expertise to get something done in the real estate market. Try to choose the most reputable sources when forming your own opinions. You want to be able to make an informed decision when you have to.

My opinion on this market is that it should not be considered a market. A market is driven by ready, willing & able buyers & sellers. Not the feds, big banks & Wall Street (even if they are ready, willing & able.) They are not really paying attention to the main street market. Does that mean that you may want to take what these sources are saying seriously or skeptically? Decide for yourself. Right now the big players are “making the market” – if you can call it that. The red-tape is the problem now for smaller, independent investors who do not have staffs of lawyers, accountants & analysts.

Florida was just recovering from nasty hurricane damages in my market area when the financial markets infiltrated & infected the lending business for real estate. We are still living with those consequences, as well as the consequences from an all-too-predictable over-reaction by government.

Florida is slowly & unevenly recovering from the “recession” which officially ended about 5 years ago. We still have not recovered all the information, manufacturing & construction jobs we had before the recession. Trade, transportation & utility jobs are the state’s largest employment sector.

In January, 2014, MGIC’s Economic & Housing Indicators, National Overview for the U.S. “Observations: The U.S. Economy continued to grow at a subpar pace. Even though corporate profit margins improved, both businesses and consumers remain cautious. Looking forward, conditions appear to be right for stronger economic growth in 2014. To start with, the U.S. is on track to add nearly 2.2 million jobs in 2013, as the jobless rate declines. The bipartisan budget agreement may bring more stability, as well as reduce risk of further sequestration. There is a renewed outlook for housing as foreclosure activity fell 24%, existing home sales are up and property values appreciated 4%. First-time and trade-up homebuyers must fill the void left by fewer investor purchases.”

“Housing Market Condition:

Current      STABLE

Short-Term Projection      NO CHANGE”

PHOENIX

Current     STABLE

Short-Term Projection     NO CHANGE

SOUTH FLORIDA Markets

MIAMI

Current     SOFT

Short-Term Projection      IMPROVING

FORT LAUDERDALE

Current      SOFT

Short-Term Projection     IMPROVING

WEST PALM BEACH

Current     SOFT

Short-Term Projection     IMPROVING

(These are Metropolitan Statistical Areas)