Southwest Florida has witnessed a steady increase in home prices in the post-recession period. However, despite all this progress a report released in April shows that the prices are far away from the peak prices witnessed when the housing industry was experiencing a boom.
RealtyTrac, a research firm based in Irvine Calif says that the home prices in the area (Southwest Florida) were below their peaks by a higher margin than anywhere else in the whole nation. The good news is that they are recovering well like in other parts of Florida.
The Vice President of RealtyTrac, Daren Blomquist says that most areas in Florida have not recovered to the peak prices seen when the housing industry was booming. The median prices for homes in Collier were down by 38% from the peak prices of $390000 seen in 2006 (May). In Lee, the home prices were 44% below the high median peak prices of January 2007 ($256000).
In July 2006, the statewide median home prices were at a high of about $230000 but in April, they were 42% below. By contrast, the nationwide prices are about 28% below the peak prices of $237537 that were seen in 2006 (August).
As for the Southwest Florida residents, Blomquist said the figures are the in the same predicament. Many homeowners are going through a negative equity since they bought homes when the home prices where high. However, the current situation is a relief for buyers as the prices are relatively low.
RealtyTrac has found that about fifty-two counties nationwide have seen prices rise past the peak levels. Michigan and Kalamazoo County have had the highest rise. The prices are up by 25.5% from the median peak prices of $108000. This has been partly attributed to the increase in population by about 2.6% to 256725 between 2010 and 2013. Blomquist said that the Midwest counties have seen their home prices surpass the peak levels. Also noted, was how rich buyers in big cities such Washington and New York have managed to keep the prices high.
RealtyTrac also reported that Southwest Florida has also experienced a considerable rise in home prices. The median prices in Collier hit a low of about $150000 in 2010 (October). Thereafter, there has been a 60% rise. The median prices in Lee have risen by 90% from a low of $74900 seen in November of 2010.
Mahoning County has experienced an impressive recovery where the prices zoomed by 273% from a median low of about $25500 that was seen in the month of March in 2009.
Despite the rise in home prices, homeownership levels have not been hurt. Mahoning has a 70.7% ownership rate compared to Ohio’s 68% and 65.5% nationwide. Despite a pent-up demand, Blomquist said that tighter lending has put a strong hold on the prices nationwide. This is keeping them from rising back to the boom levels. He noted that one has to go through some stringent processes in order get a good loan or one has to use cash. This has made buyers quite conservative.