Interest Rate Roundup

Tuesday, January 16, 2007

Straight talk on local home sales here in sunny South Florida

I live in South Florida, and I love it. But we're clearly at the epicenter of the housing bust. Our sales are down big-time ... our home prices are falling ... and our inventories remain extremely high.

Case in point: One of the real estate firms in my area posts Greater West Palm Beach, FL sales, inventory, and pricing data a few days before the official Florida Association of Realtors figures come out. The firm's web site was just updated with December figures. It looks like volume dropped 42% year-over-year, while median prices slumped 8%.

What about supply? Well, there were 21,699 properties on the market in December 2006 vs. 12,684 a year earlier. That's a 71% gain. Since December sales came in at 612 units, we're sitting on more than 35 months worth of inventory at the current sales pace. Yikes!


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