Friday, June 29, 2007
Future Predictions & Update Snapshot:
Housing market activity improved in March, closing out the first quarter of 2007. Hank Fishkind, Ph.D., and chief economist for The Fund, notes that closing volumes were generally higher for all market segments and in almost every county across the State. Prices firmed as well. These data confirm that Florida’s housing markets have finally stabilized after contracting sharply during the last 12-to-16 months.
Fishkind also adds that the inventory of new homes is declining in most markets, because the volume of closings is higher than the pace of new construction activity. Furthermore, even the bloated inventories of existing homes are receding, as closing volumes have stabilized and new listings have declined. Orlando’s housing markets (including Lake, Osceola, Orange and Seminole Counties) reflect these trends. For example, the closing volume for existing homes increased in March reversing many months of declines. Prices were firmer too. The markets for new homes, new condominiums and existing condominiums were all a bit stronger as well.
Fishkind predicts that Orlando’s housing markets will continue improving during the next 24 months. However it will take at least another 12 months before the recovery reaches levels that can be considered “normal” for Osceola, Orange and Seminole Counties and at least another 18 months for Lake County.
