Housing Market Recovering as Sales, Prices Rise in April

Home sales and prices increased last month in South Florida as the housing market continues to stabilize following a steady, four-year decline.
Broward County had 766 sales of existing homes in April, up 11 percent from 690 a year ago, the Florida Realtors trade group said Monday. Palm Beach County had 918 homes trade hands, a 35 percent increase from 681 last April.
Broward’s median price of $204,300 rose 7 percent from $191,300 a year earlier. Palm Beach County’s median rose 2 percent to $239,100.
Even existing condominium prices show signs of rebounding. Palm Beach County’s median condo price of $102,000 increased 4 percent from last April. Broward’s median condo price of $79,300 was down 1 percent from a year ago.
Much of the activity is the result of two federal tax credits. To qualify for the $8,000 and $6,500, buyers had to sign contracts by April 30, but they don’t have to close until June 30.
With the incentive gone, some analysts expect sales to decline gradually over the next few months. That also could hurt prices.
Still, Mike Larson, a housing analyst with Weiss Research in Jupiter, doesn’t forecast a major decline in sales because affordability will keep buyers interested. He expects a steady, if stagnant, recovery.
“For a market that’s already gotten killed, I don’t think there’s some new huge plague out there,” Larson said.

from South Florida Sun-Sentinel - May 24, 2010