Florida's real estate market shows gains:FAR releases September stats

Even as the nation’s economy churned in turmoil, Florida’s real estate market quietly — and some would say, amazingly — showed significant gains in September, according to the most recent stats released by the Florida Association of Realtors.

The stats are based on transactions conducted by member Realtors throughout the state and reflect only existing residential properties commonly known in the industry as “resales.” They do not include other types of real estate such as new construction, unimproved property (lots and land) or commercial properties.

According to FAR’s numbers, sales of existing residential properties across the state rose by 24 percent, as compared to September 2007. Sales of existing condo units were also up, netting a gain of 11 percent.

Likewise, sales of existing homes along the Emerald Coast rose, jumping 26 percent, two points ahead of the state average. Sales of existing condos, however, dipped, losing 11 points in September, as compared to the same month in 2007.

“I think the condo market is going to take longer to recover,” said Dr. Rick Harper, director of UWF’s Haas Center for Business Research, while analyzing the state of the nation’s economy and its effect on the Emerald Coast real estate market.

Harper described the local economy as being economically “buffered” by a heavy military presence that in addition to offering job stability for many residents, also contributes tremendously to the demand for primary homes regardless of market conditions.

Conversely, he pointed out, a large percentage of condo investors do not reside or work in the local area. Added to that, potential real estate investors are typically also invested in the stock market and many of them have suffered significant loss in its recent downturn. This in turn has whittled away at their discretionary income that previously was abundant enough to allow for the purchase of secondary or investment homes.

Still other potential condo purchasers who reside outside the local “buffer” zone may be tightening their investment belts as a precaution for an uncertain economical future spawned in part by industries across the country publicly undergoing massive job layoffs in an effort to trim their own shrinking budgets.

In areas of the state where sales of existing condos have significantly picked up speed, the demand may have been fueled by a different type of buyer than those who typically buy into the local market. Longtime Miami area Realtor Ellen Bithell said she’s seen an increased number of retirees buying condominium units there.

“Supply and demand is everything and right now there is so much supply the buyer can really get a great deal,” she said. “We’ve seen a lot of retirees buying condos now who couldn’t afford to buy them before.”

Which is why, she said, she also sees more and more families able to get into the market for the first time. Unlike with retirees, she explained, these types of buyers are typically in the market for a single-family residence and, in the current market, can usually find something affordable.

While Bithell’s comments are based on her own personal on-the-job observations, the FAR numbers validate her words. According to the stats, sales of existing homes in the Miami area were up 14 percent in September while sales of existing condo units dipped a mere 1 percent. The sales numbers seem even more significant when considering the many months of sharp double-digit declines the Miami area experienced in 2007 and 2008.

But Bithell and other industry insiders note there are still many challenges facing the real estate industry. And tighter, more complex lending practices appear to be at the top of the list.  That’s just one reason why experts often advise consumers that using a Realtor is the best way for consumers to navigate the often-complicated procedure of buying, selling and arranging financing for a home.

“Good Realtors are very hands on,” noted Lorena K. Spillar, a home mortgage consultant with ECAR affiliate member Wells Fargo Home Mortgage in Destin.  “They’ve established relationships with appraisers, inspectors, title companies and lenders and can act as a liaison and help get things ‘through’ more quickly.”

She advised consumers, particularly sellers, to “shop around” for a Realtor.

“If I were selling my home, I would interview at least three Realtors,” she advised. But even as an industry professional, she said, she wouldn’t try and go it alone.

“I absolutely recommend using a good Realtor when buying or selling,” she said. “They’re experienced and know how to navigate the system. In the long run, they make things easier for all of the parties- the buyer, the seller and the lender.”

This article was contributed to The Log.