For most Americans, especially here in Florida, the data concerning residential real estate can be particularly impactful. So, when a recent report says that the number of new home sales rose in July but prices fell, what is someone interested in the South Florida real estate market supposed to make of that data?
Several of our previous posts have mentioned how the slow housing market recovery seems to have a bit of a quicker pace in South Florida than most other areas of the country. Both the number of sales in the region, as well as prices, has mostly risen in recent months, helped by strong demand from all types of buyers interested in residential property in one of the most beautiful locations in the country.
But when the numbers are looked at from a national perspective, prices in July for new homes dropped 2.5 percent from the same month last year, to an average of $224,200. That drop in price coincides with an increase of 25.3 percent in the number of new homes sales in July of this year as compared to July 2011.
Although most of the news concerning the health of the national housing market continues to be tepidly good, there were bound to be some black marks and setbacks along the way. So what does this conflicting data represent? Most likely, it represents a national market for residential property that will continue to remain in flux for the foreseeable future.
Fortunately for South Florida buyers and sellers, the local market appears to remain strong. Residential development is picking up, and the local market looks like it will continue to be a bright spot in the somewhat-sagging overall national real estate market.
Source: Yahoo! News, “New home sales rise 3.6 percent in July, but prices fall,” Jason Lange, Aug. 23, 2012