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» VISIT US ONLINE @ DSNEWS.COM 101 IN THE NEWS Florida Housing Market Recovering But Still Not 'Healthy' In Florida, the median price of homes is increasing and sales of single-family homes have gone up, Florida Realtors reported in its Q2 2014 report released in August. However, RealtyTrac's July 2014 U.S. Foreclosure Market Report found that Florida had the highest state foreclosure rate in the nation for the 10th consecutive month despite a 30 percent year-over-year decrease. "Many of the markets are defined by extremes – either the accelerator is to the floor or they're slamming on the brakes," Realty- Trac vice president Daren Blomquist said. "Right now the accelerator is on the floor in Florida, but there is a drag on the market as far as foreclosures. e market is show- ing signs of recovery, but I wouldn't say it's healthy yet." Florida Realtors reported a 5.3 percent year-over-year increase in the median price of single-family existing homes for Q2 2014 and a 10.1 percent increase in the median price of townhouses-condos from the same quarter a year ago. "Florida's housing market continued its steady course during the second quar- ter of 2014," Florida Realtors president Sherri Meadows said. "As of June, the state's unemployment rate is 6.2 percent. More jobs are being created, which is good news for Florida's economy and a strong housing market." Sales of single-family existing homes for Q2 2014 totaled 67,579, up 7.3 percent from Q2 2013, according to Florida Realtors. But sales of townhouse-condo properties experienced a 3.4 percent year-over-year decrease. "e second quarter numbers show that Florida's real estate market is settling in," Florida Realtors chief economist Dr. John Tuccillo said. "While prices throughout the state tend to be up, sales are mixed with single family sales growing, and condos and townhouses declining. ere are a lot of reasons for this, but the major factors are the reduced role of bulk investors, along with the difficulties faced by households with essen- tially flat incomes and thus limited access to mortgage credit. is market is sustainable, but either or both of these roadblocks must be removed if it's to take off again." e high foreclosure rate in Florida is a problem left over from the housing bust that occurred following a flurry of buying activity on the part of investors between 2004 and 2008, according to Blomquist. About 74 percent of loans currently in foreclosure in Florida originated during that four-year period, Blomquist said. According to RealtyTrac's report, eight of the 10 highest metro area foreclosure rates in July were located in Florida, led by Ocala with one foreclosure for every 296 housing units on the average. e statewide foreclo- sure average for Florida was one in every 469 properties for July. RealtyTrac reported that one in every 469 Florida homes was in foreclosure as of July 2014, appreciably higher than the national average, but still down 30 percent from a year ago, a "dramatic decrease," according to Blomquist. "In Florida, even though the foreclosure rate is highest in the country, the numbers are still coming down," Blomquist said. e rising prices and increased sales of single-family homes are signs that Florida housing market is headed in the right direc- tion despite the foreclosures, Blomquist said. "In terms of prices and consumer con- fidence, the market has bottomed out and is coming back up," Blomquist said. "e prospect looking forward is good and there is a light at the end of the tunnel." Consumer Sentiment on the Rise in Florida e Bureau of Economic Research at the University of Florida announced that the consumer sentiment index for the state's resi- dents rose another two points to 84, hitting a post-recession high. Consumers' expectations of U.S. eco- nomic conditions over the next year and the next five years rose. Perceptions as to whether it is a good time to buy big-ticket items main- tained a post-recession high of 94. e gain in confidence was more broad-based than in previous months. "We appear to be gaining some traction among consumers here in Florida," said Chris McCarty, the Survey Director. "e last time Florida consumers were this confident was over seven years ago in April 2007, prior to the recession, when the housing market was beginning to unravel. Prior to that the index peaked at 98 in January 2004. Overall we are quite a bit behind where we would typically be this far out from the end of a recession, but we had a lot further to go in this recovery." e employment situation has improved slightly in the Sunshine State, with unem- ployment declining 0.1 percent to 6.1 percent. Housing prices were up again in June to $185,000 for the median price of a single fam- ily home. ere are some signs that housing gains may slow as both housing starts and sale of existing homes slowed in adjacent southern states. Economists are holding judg- ment until further data has been compiled to see if the decline part of a trend. "Given the current trends here in Florida our expectation is that consumer sentiment will continue to rise slightly in the short run," McCarty said. "While an index of 84 is not historically high, it does reflect a far more optimistic consumer than we have seen over the past year. Most of the potential effects of confidence are external to the state". "ese include the inevitable rise in short- term interest rates that the Federal Reserve will implement as early as this fall, the effect on consumers from escalation of conflict in the Middle East and Ukraine, and a signifi- cant correction in the stock market which is a topic of discussion among economic pundits." The number of active home listings Florida had in the second quarter of 2014. Source: Florida Association of Realtors. STAT INSIGHT 108,046

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