South Florida Homes - and prices - rise

After nearly three years of freefall, South Florida single-family home prices tried something new in April: They went up.

In a sign that the ailing real estate market could be heading in a healthier direction, the median sale price of existing homes in Miami-Dade and Broward increased compared with last April, according to data released Monday by the trade group Florida Realtors.

Home sales also crept up, fueled by bargains on troubled properties, low mortgage rates and a deadline for thousands of dollars in tax credits.

``There's no question that the market has been strengthening,'' said Ron Shuffield, president of Esslinger-Wooten-Maxwell Realtors.

In Miami-Dade, the year-over-year median home price increased by 8 percent to $192,000, while the jump was 7 percent in Broward, to $204,300. Existing Miami-Dade home sales rose 7 percent over last April to 594. In Broward, sales increased 11 percent to 766.

Condo sales had big jumps over last year, but with plenty of inventory still to choose from, prices continued to fall. In Miami-Dade, 723 units sold, a 33 percent increase over the same time a year ago. But the median price dropped 3 percent to $130,000. Broward condo prices dropped a percent to $79,300, with 1,077 selling -- an increase of 30 percent over April 2009.

All this follows last week's positive news on the job front. Florida's unemployment rate dropped to 12 percent in April after 49 months of increases.

``It is a lot more exciting now,'' said Jay Reichbaum, general manager at Jeanne Baker International Realty in Coconut Grove. ``Things are definitely looking a little brighter.''

Still, he called the mood ``hopefully optimistic'' rather than all-out celebratory. ``Most of us who've been doing this for awhile feel like we probably won't get back to a real market until 2011 at least.''

Foreign buyers, mostly Canadians armed with cash, have been driving sales in Hollywood, Hallandale Beach and Sunny Isles Beach for Realtor Genevieve Bouchard.

``It was really, really great,'' said Bouchard, who said the big sellers are condos between $150,000-$300,000. ``I wish all my months were like that.''

Nationally, home sales outpaced expectations for April with the temporary boost of an $8,000 tax credit for first-time buyers and $6,500 credit for repeat buyers. The deadline to sign a contract was April 30; buyers must close by the end of June.

The National Association of Realtors said Monday that sales of previously owned homes rose 7.6 percent to a seasonally adjusted annual rate of 5.77 million, the best showing in five months.

Home prices also increased from a year ago, with the median price up 4 percent to $173,100.

If you put a microscope to the numbers, the month-to-month figures show less clarity. April's numbers were either only slightly better or worse than March's. Broward single-family home sales were up 4 percent from March, while prices dropped 4.5 percent. Miami-Dade sales dipped 8.5 percent and prices were down nearly 3 percent.

Miami-Dade condo sales were down 13 percent, with prices down 6 percent from March. Condo sales in Broward dropped 5.5 percent month over month, though prices increased almost 8 percent.

Expert opinions on Monday's news ranged from skeptical to the ``I told you so'' variety.

``I think it's a blip,'' said independent housing analyst Jack McCabe, CEO of McCabe Research & Consulting. ``A lot of times when we compare these monthly numbers from the Realtors association to a year ago, they're highly volatile.''

He pointed to foreclosures that haven't hit the market and predicted a drop in sales later this year once all the tax credit-fueled purchases close.

But real estate analyst, appraiser and advisor Michael Y. Cannon said he was wasn't surprised by the increase in sales and prices.

``The market is coming back to its equilibrium,'' he said.

Cannon, executive director of Integra Realty Resources -- Miami, said some markets -- Coral Gables, Miami Beach and part of Coconut Grove, for example -- have kept their prices up, and even some investors are finding value in flipping foreclosures.

EWM's Shuffield said it is too early to predict whether sales prices will continue to increase, but said the figures should bring confidence to the homeowners.

``I don't think anybody is anticipating that we're going to see peak prices again anytime soon,'' he said. ``But I think if we can just begin to get back to a normal increase of 4, 5, 6 percent annually in value, then people would be very pleased.''

Physician's assistant Krysten Riordan ``probably looked at close to 100 houses'' before signing a contract for a four-bedroom home in Davie in April. She's waiting for bank approval.

Riordan, 32, said low interest rates and fair prices spurred her to make her move.

``For me, I think everything fell into place at the right time.''

Source: http://www.miamiherald.com/2010/05/24/1646315/home-sweet-home-with-rising-sales.html

BY HANNAH SAMPSON
hsampson@MiamiHerald.com