Last week, the chief economist of the National Association of Realtors said this morning, he predicts Florida real estate prices to jump 10% by the end of the year as inventories decrease and investors battle for what remains of income-producing properties. He was optimistic that real estate in hard hit states, such as Florida, Nevada and Arizona has largely hit bottom and are on the way back up.
Compared to other parts of the United States the South West Florida market, is recovering very quickly from over supply to a shortage of inventory.
At least one report released today appears to support this prediction. The National Association of Realtors website said the median list price for a Palm Beach County home was up 15% in April to US$225,000 compared to the same time in 2011.
At the national level, the median list price was up 5.5% for the same time period. In addition, rental activity in the Miami Beach and especially South Beach neighborhood of Miami Beach surged 20% in the first quarter of 2012 on a year-over-year basis compared to the same January through April period in 2011 even as the median lease rate increased by 25%.