Positive Indicators in Southwest Florida Housing Market
Lower prices have provided ample incentive for many buyers in Charlotte County to get off the proverbial fence. In March, 268 single-family homes sold in North Port, a 13% increase over the 237 sold in 2007. Average price per square foot also seems to be stabilizing in select areas like Anna Maria Island where average price/sf rose to $404 from $390 in March 2007. Data from the North Port condominium market is not as robust as the single-family segment; however, the relatively flat data (sales down 2%, median price off 4%) also seem to suggest a bottom. Excess inventory is a big problem in Southwest Florida, although some markets like Sarasota are now showing movement in a positive direction. Active listings in the Sarasota MLS rose 26% from 2006 to 2007 but actually fell 3.5% from 2007 to 2008. 
NBC-6 investigates the foreclosure fallout and the growing number of open, vacant and abandoned (OVA) houses in South Florida. The report details the negative impact abandonded houses are having on their surrounding neighborhoods. Mosquito-infested pools, unkept lawns, broken windows and doors are creating eyesores for neighbors, a deterrent for potential buyers and serious hazards for children. Viewers in Miami-Dade are encouraged to contact Team Metro, an organization tasked with cleaning up and sealing off abandoned homes. Bank inspectors and Team Metro members say the OVA phenomenon is impacting both affordable areas like Homestead and Miami Shores and exclusive gated communities like Cocoplum and Gables by the Sea.
First it was the financial institutions like PNC Finanacial and Bank of America. Then Starbucks got in on the act. Now AutoNation is jumping on the housing scapegoat bandwagon. Earnings for the Florida-based auto retailer were down 35% in the first quarter of 2008, and the company (Chart) blamed housing market weakness in four states that account for 60% of their new vehicle sales: California, Florida, Nevada and Arizona. With this latest news, it seems the housing crisis is ascending to the ranks of some of Wall Street's best known scapegoats including El Niño, Y2K and the economic slowdown post-9/11. For some humorous, historical perspective, enjoy this New York Times column from 1998: Dear Shareholder: The Dog Ate Our Earnings.
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