The market is turning in the sunshine state. What was once considered the worst real estate market in the nation is now considered by many to be one of the brightest.
How could it not?
Prices have dropped substantially in Florida over the last 5 years. In some areas of Sarasota, Florida you can find a home for less than half of what is sold for 2005. If the price of almost anything is cut in half someone is bound to show interest. That is the free market.
Realtor.com released their top 10 turnaround markets and 6 of the 10 were Florida cities. Miami, Orlando, Ft. Myers/Cape Coral, Ft. Lauderdale, Sarasota/Bradenton and Lakeland/Winter Haven were on the list.
The National Association of Realtors (NAR) came out recently with a list of the top 10 cities in the country with the highest percentage median list price change from September 2010 to September 2011. Seven out of the ten top cities are in Florida with Sarasota, Florida at #4! The median list price was $233,000 which is 16.53% change from September 2010.
The chart above shows inventory levels, sales and pending sales for Sarasota county over the last 5 years. As you can see inventories of properties for sale has decreased substantially. Many of the other Florida markets have a similar story – higher sales and shrinking inventory.
This is a good sign for sellers and home owners. Fewer properties for sale with steady or increasing demand leads to one thing – higher prices.
Jim Cramer’s Thoughts on Florida Real Estate
Take a look at what Jim Cramer thinks about Florida real estate.