Jupiter Real estate market upbeat

General Homes Outlook

It looks like the housing market is finally turning around for the better, according to Florida Association of Realtors® (FAR). Florida’s existing home sales increased in March, making it the seventh month in a row that sales activity confirmed gains in the year-to-year comparison. To be more specific, existing home sales rose 30 percent in March with a total of 13,085 homes sold statewide compared to 10,080 homes sold in March 2008, according to FAR.

Florida Realtors also reported a 25 percent rise in statewide sales of existing condominiums in March, continuing a trend in recent months for higher statewide sales of both the existing home and existing condo markets compared levels a year ago.

The median sales price in Florida for existing homes in March was $141,300; a year ago, it was $201,700 for a 30 percent decrease. Industry analysts with the National Association of Realtors® (NAR) report there is a significant downward distortion in the current median price due to many discounted sales, including a large number of foreclosures. The median is the midpoint; half the homes sold for more, half for less.

The National Association of Realtors (NAR) has reported that the latest housing industry outlook is that of first time buyers who are seeking bargains. “Given the downward distortion in price comparisons due to distressed sales, it’s important for owners to keep in mind that this doesn’t equate to a similar loss of value for traditional homes in good condition,” as said NAR Chief Economist Lawrence Yun.

The general forecast for home and condo sales are optimistic due to the United States Senate moving towards easing mortgage terms therefore allowing more citizens to obtain the loans to buy homes as well as to avoid foreclosures. On Wednesday May 6^th, 2009 the Senate voted to make it easier for homeowners to switch to a lower cost mortgage backed by the US Government. To be more specific the Senate bill would expand an existing $300 billion program called “Hope for Homeowners,” which encourages lenders to write down an individual’s mortgage if the homeowner agrees to pay an insurance premium. The program, which is set to expire in 2011, is intended to swap out a homeowner’s high-interest rate for a 30-year fixed loan backed by the Federal Housing Administration. The bill that passed 91-5, also would give banks a break by reducing fees they must pay for the government to insure deposits. Lawmakers say that this legislation is needed to avoid the economy from getting any worse.

 

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