South Florida real estate prices at new post-bust low

South Florida real estate prices at new post-bust low

South Florida home prices hit their lowest level since the real estate crash in March, a crushing drop that reflected the nationwide trend and one that had economists declaring recent market gains artificial.

Prices for Palm Beach, Broward and Miami-Dade counties were down 6 percent from the previous year and a staggering 51 percent from their peak in December 2006, according to the Standard & Poor's/Case-Shiller price index, which was released Tuesday.

"The rebound in prices seen in 2009 and 2010 was largely due to the first-time home buyers tax credit," said David Blitzer, chairman of the index committee at S&P Indeces. "Excluding the results of that policy, there has been no recovery or even stabilization in home prices during or after the recent recession."

In South Florida, prices increased in 2009 between July and November. They ticked up again in 2010 between May and August. Both time periods conincide with deadlines to earn the tax credit.

Prices have consistently fallen since then, which to Case-Shiller economists signals a double-dip in the market.

"It's not good news," said Maureen Maitland, vice president for S&P Indeces. "It's basically confirming what a lot of people were worried about last year and that is that the tax incentive was a temporary stimulus."

But median sale prices have bumped around under $200,000. In April, Palm Beach County's price for a single-family home was $198,000, down 17 percent from the same time in 2010.

Many economists think prices nationally will drop at least an additional 5 percent by year's end. They aren't likely to stop falling until the glut of foreclosures for sale is reduced, employers start hiring in greater force and buyers regain confidence that a home purchase is a wise investment.

This is what we have been advising our sellers and prospective sellers for over 2 years now...what we advise is that you want to be THE NEXT home to sell in a declining market. Don't think it is like to old days of 'we'll price it a bit high and wait' for a buyer.