MIAMI (CBS4) – For years we have seen real estate prices in South Florida tumble, but for the first time it appears that trend is reversing.
In fact, some are predicting this year could turn out to be a record year for sales that could dramatically affect home prices.
Miami resident Ben Mollere showed CBS4’s David Sutta what he hopes will be his home by next week.
The two story home in Coral Gables is exactly what he was looking for.
“I kind of liken it to child birth. You’ve gone through the labor pains right now and soon we are going to have our baby.”
Mollere said he has looked at over 75 homes and has found himself competing with buyers at every turn.
“We are not really seeing that there are these great deals or great steals from the asking price to the actual selling price.” Mollere said.
Are prices still dropping like a rock?
“Definitely not in Coral Gables.” realtor Jeanette Slesnik said.
Slesnik says some homes are actually appreciating.
Homes that used to take a year to move, “Now sell in 17 days, 18 days because the supply has greatly decreased.” she said.
It’s all about supply and demand, and lately supply is disappearing quickly.
Ron Shuffield of EWM Realty is smiling ear to ear because of what he is predicting.
“We will definitely sell more homes and condominiums in Miami-Dade county this year than we have ever sold in history,” said Shuffield.
Shuffield has the numbers to prove it. During the peak of our market in 2005 Miami-Dade realtors averaged 2200 sales a month. This year they are pushing close to 2500.
“It says to me that people sense that these values are as low as they are ever going to get.” Said Shuffield. “Of course our international buyers are helping us a lot.”
With homes selling demand is pushing prices up. The price of a house in Miami in January averaged $150,000. In just five months it has jumped to $180,000.
The same can be said for condos. In January they fetched $90,000. Today they average $124,000.
Of course not every area is seeing this.
Shuffield explained “Some of the areas that were overbuilt on the outer fringes it will be a few more years before we see an appreciation.”
Shuffield says all of this is good thing because every time a home appreciates, people that are under water, or people owning more on their house than its worth, see their home values come up,.
With roughly one out of every two homes underwater in South Florida it is a good thing to see.