The US housing recovery will most likely be on hold for years. There are many reasons as to why, however, one that is becoming more glaring is the amount of vacant homes in the United States. The oversupply of homes should depress new home builds and take a while for the market to return to an equilibrium between supply and demand.
In March 2011, the US Census Bureau revealed that 1.6 million homes in Florida are vacant-- that is 18% of the total. The number of vacant homes increased 63% during the past 10 years.
Florida is the worst state in the nation for vacant homes; Arizona sits at 16%; Nevada is 14% and California is only 8%.
The worst hit county in the state of Florida is Collier, the home of Naples, which stands at 32% of the total homes being empty. Palm Beach comes in at 18%; Broward is 16%; and Miami-Dade is 12%.
The median home in Florida sold for $122,000 in January 2011, which is down 7% from 12 months earlier; this is less than half the price reached at the market peak. The oversupply and reduced influx of people to Florida are reasons to be cautious about the market. During the decade of 2000, the state saw just 5.7% population growth in the second half; the decade had a nearly 18% increase of population during the decade.
The aforementioned statistics are why some real estate experts think it will take a while for the Sunshine State's housing market to appreciate in price. One expert is quoted as saying it taking eight years for the vacancy numbers to reach single digits.
Ingo Winzer, a market analyst for Local Market Monitor is quoted as saying prices will drop another 5% in 2011 and an additional 3% in 2012. Celia Chen, a market analyst for Moody's Analytics says prices will fall another 11% and the bottom won't hit until mid-2012 for Florida; she predicts a market bottom for the United States during mid-2011.
If you are thinking of selling or buying a home, or require more information, please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-247-3550
http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser
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