FL REALTORS® Predict Price Increases Will Top 5 Percent

Dated: November 9 2015

Views: 353

WASHINGTON – Nov. 5, 2015 – Most Realtors® remain "strongly" confident that the single-family home market will perform better over the next six months than it did a year ago, according to the latest Realtors Confidence Index, a survey of more than 50,000 practitioners.

And in a state-by-state comparison, Realtors in Florida have the highest expectation for home price increases. Job growth and low interest rates – the 30-year fixed-rate mortgage is holding below 4 percent – are helping to buoy demand, the survey indicates.

Nationwide, Realtors expect home prices to rise an average 3.2 percent over the next 12 months. However, "Realtors expect the recent strong price growth to moderate as rising prices have made homes unaffordable for many, with home prices almost on par with their levels prior to the housing downturn," according to the report.

The median price of all existing homes in August was $230,200, which nearly matches the peak price of $230,900 in July 2006.

Realtors in Florida predict that state home prices will rise 5-6 percent over the next 12 months – the only state where members expect an increase greater than 5 percent. In addition, only three other states' Realtors expect a price increase in the 4-5 percent range: Washington, Oregon and Colorado. Realtors predict a 3-4 percent increase in 19 states, and 2-3 percent increase in 27 states. No state predicted an increase less than 2 percent.

Survey respondents report that their biggest market challenges continue to be tight inventory, decreasing affordability, tight mortgage availability, and slow, excessively conservative appraisals.

Many respondents also express concerns over the difficulty to obtain financing for condo purchases, since many condos aren't eligible for FHA loans or ones backed by Fannie Mae or Freddie Mac.

Source: "REALTORS® Confidence Index: Report on the September 2015 Survey," National Association of REALTORS® (Oct. 22, 2015)

Blog author image

Angelo F. Terrizzi Jr.

I am a New England native, born and raised in the Boston area. Growing up, I was always involved with extra-curricular activities through school and church. I spent 30+ years in Business and later in ....

Want to Advertise on this Site?

Latest Blog Posts

Selling A Home

Selling a home can be a difficult task for even the most seasoned of sellers. There is so much that goes into the process of placing a property on the housing market. First, the owner needs to get

Read More

Dear Homebuyers Please Stop Thinking You Need 20 Percent Down

NEW YORK – Feb. 18, 2019 – First-time buyer surveys consistently show the top hurdle to homeownership is saving up for the downpayment. But potential home shoppers may be misunderstanding the

Read More

Green Building At All Time High In Nations Largest Metros

LOS ANGELES – Aug 24, 2018 – The nation's largest cities are getting greener, according to the fifth annual U.S. Green Building Adoption Index by CBRE and Maastricht University.

Read More

Easy Deep Cleaning Tips

These are great hacks to cut your time and energy in half. Soap Scum in the Tub - Cut this backbreaking effort in half by attaching a scrubber to a power drill and using it to do the scrubbing for

Read More