SoFla Update: Sales Rise, Prices Plummet

Forecast: Housing Prices Won't Rise Until 2011 or 2012

Paul Owers of the Sun-Sentinel gives us the good news/bad news breakdown as the HousingBath nears the 40-month mark. Existing home sales in Broward and Palm Beach County rose 47% and 20% respectively in March while existing condominium sales were up 28% and 17% respectively. And now the bad news: prices are plummeting. The median home price in Broward is now $219,500 compared to the peak of $391,100 in November 2005, and economists think Broward median prices will fall another $90,000 before bottoming out around $130,000. The trajectory is similar in Palm Beach County where median prices maxed out at $421,500 in 2005 and hit $228,100 last month. Moody's Economy.com analysts believe Palm Beach median prices will fall another $80,000 over the next 2-3 years. Owers sums up the SoFla housing status quo: "When banks slash prices on distressed properties, it reduces the values of homes nearby. That, in turn, feeds the foreclosure cycle. The price declines lead to homeowners walking away, frustrated that they owe more than their properties are worth."