Florida Housing Market for the 3rd Quarter

In the 3rd quarter of 2006, the number of transactions and median home prices dropped statewide. Inventory levels increased and sales have slowed. According the FAR (Florida Realtor Association) sales of single-family existing homes totaled 43,395 during the 3rd quarter, a decrease of 34 percent compared to 65,364 homes sold during the same time a year ago.

The University of Florida's Center for Real Estate Studies recently conducted a new statewide quarterly survey of industry executives, market research economists, real estate scholars and other experts. The threat of spiraling insurance rates was mentioned as the biggest concern, followed by the softening housing market as the second most-mentioned trend.

Still, even if a sharp downturn in the housing market occurs as some analysts predict, Florida will be less affected by it than other states because of the insulating effect of its high population growth rate, said Dr. Wayne Archer, director of UF's Center for Real Estate Studies. Despite some people's worst fears, housing is unlikely to suffer the same fate as tech stocks at the beginning of the decade, he said. "Unlike tech stocks, housing has a use, which means it can't just evaporate," he said.

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