A moment that seemed choreographed to cause maximum confusion about whether the housing market is in recovery—or not—took place in real estate markets across Florida last week. No sooner had the National Association of REALTORS® issued its nationwide snapshot of existing home and condominium sales for the month of January than the Florida Association of REALTORS® released its own statewide recap. To say the least, the two sets of monthly statistics clashed dramatically, painting very different pictures of the market.
Poised for national sales to finish up slightly in January, economists were caught off balance by NAR’s announcement that unit sales had actually declined nationwide for the second straight month, falling to the lowest level since last June. Rightly or wrongly, the result was widely interpreted as a sign that the national housing recovery might be faltering.
Then—literally moments later—January sales for Florida were released by the Florida Association of REALTORS®. The contrast between the two sets of results could not have been sharper; proving once again the old business adage that “all real estate is local.”
Far from mimicking the sluggish national trend, Florida’s existing home sales continue to blaze a trail of sustained recovery in the price ranges below $350,000. Sales here rose impressively again in January, marking 17 straight months in which statewide sales have increased in year-over-year comparisons.
Homebuyers probably don’t see themselves this way, but as they step up to take advantage of the best housing values in more than a decade each becomes their own personal economic stimulus package, securing for themselves a fabulous long term investment even as they help rescue the economy from the mess it’s in. More likely, they see themselves as grand prize winners in the housing sweepstakes; smartly timing the market just as prices are bottoming, interest rates are at an all-time low and the first time homebuyer tax credit is on hand to add an extra dollop of icing to the cake. Moreover, if you also happen to be a newcomer to Florida your decision to move your primary residence to one of the least-taxed states in America will be the gift that keeps on giving.