| **Central Florida Real Estate led by hot
| |
| | is being fed by a steady influx of new
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| commercial sector
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| | residents and a booming job and
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| Throughout 2005, commercial developers
| |
| | commercial sector. People are moving in
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| and real estate investors in the Orlando
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| | from the Northeast, from the Midwest, and
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| area have seen the same kind of
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| | from Latin America.
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| impressive price increases as home owners
| |
| | **Effects of hurricane season on real
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| across Florida. One of the hottest
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| | estate activity short lived
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| segments of the market is the sale of
| |
| | The Florida hurricane season of 2005 was
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| apartments. Two of the Orlando area's
| |
| | one of the worst on record. In the
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| largest apartment brokerages have done
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| | southern parts of the state, home sales
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| more than $2 billion in sales this year.
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| | declined in October slightly, primarily
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| It is expected that 20,000 apartments
| |
| | due to insurance issues. Most insurers
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| have changed hands and will be sold as
| |
| | stopped issuing new policies as Hurricane
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| condos in Orlando in 2005.
| |
| | Wilma approached the state. And some
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| One apartment complex developed by the
| |
| | mortgage lenders required reinspections
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| Disney Co. recently sold to a developer
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| | before mortgage money was released.
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| planning to turn them into condos. The
| |
| | But in the northern parts of the state,
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| sale price to the developer was $402,000
| |
| | in Jacksonville, where the hurricanes
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| per unit.
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| | were not much of an issue, real estate
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| Other types of commercial buildings also
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| | agents saw a 38 percent increase in the
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| were making impressive gains. The value
| |
| | number of homes sold.
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| of industrial buildings rose more than 15
| |
| | Median home prices continued to climb
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| percent in 2005. Space has gone from $55
| |
| | across the state. In October of 2005 the
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| a square foot in 2003, to more than $70
| |
| | median home price for all of Florida was
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| in 2005.
| |
| | $ 241,000 -- 28% higher than $188,800 in
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| Two bank buildings in downtown Orlando
| |
| | October, 2004. In October of 2000 the
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| were in high demand among buyers. The
| |
| | median price was $116,100.
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| AmSouth Bank drew 47 offers and sold for
| |
| | For comparison sake, median prices in
|
| $ 50.4 million. And the Wachovia Bank
| |
| | some other states in September were:
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| went for $30 million in 2002 and sold for
| |
| | California - $543,980, New York -
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| $55.35 million in 2005. That represents
| |
| | $275,000, North Carolina - $208,097. This
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| an increase of 85 percent in two years.
| |
| | shows that Florida prices have actually
|
| **Tampa Bay area office market very hot
| |
| | been undervalued and are now approaching
|
| Led by very high employment growth, the
| |
| | national averages.
|
| Tampa Bay office market is expected to be
| |
| | **Miami area experts predict 2006 real
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| one of the best performing in the entire
| |
| | estate trends
|
| country for 2006.
| |
| | According to a South Florida Sun-Sentinel
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| In a Wall Street Journal article, the
| |
| | poll of real estate experts in the South
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| Tampa Bay area was ranked as the fourth
| |
| | Florida area, real estate may cool off a
|
| most hopeful office market in the country
| |
| | bit in 2006, but will generally remain
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| for 2006. The others on the list included
| |
| | very active.
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| New York-Manhattan, Orange County,
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| | Richard Bass of Keller Williams Realty in
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| California, and Riverside-San Bernardino,
| |
| | Boca Raton expects a bit of a slowdown in
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| California.
| |
| | the residential market in the first part
|
| The Tampa Bay area has one of the highest
| |
| | of 2006. "Overall, I expect prices to
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| employment growth rates in the country
| |
| | level off for a while and then pick right
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| (3.7 percent), and most of these jobs are
| |
| | back up where they left off." Gradually
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| in office-using positions. In 2005 office
| |
| | rising interest rates will have a bit of
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| sales volume rose 35 percent with a
| |
| | a dampening effect, but they will
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| median price of $116 per square foot.
| |
| | "continue to be low enough for the market
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| **Jacksonville area not slowing down
| |
| | to expand."
|
| Real estate activity in the Jacksonville
| |
| | David Dweck with Re/Max Advantage Plus in
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| area of Florida has been booming for a
| |
| | Boca Raton thinks the lingering effects
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| number of years. And it shows no signs of
| |
| | of Hurricane Wilma will start to take
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| slowing down. According to Ray Rodriguez,
| |
| | their toll in 2006. He says "some
|
| a real estate analyst with the Real
| |
| | homeowners and investors will get
|
| Estate Strategy Center of North Florida,
| |
| | clobbered by the increase in taxes,
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| "We're OK. We will let some steam off,
| |
| | insurance and potentially higher interest
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| but the bubble here wont burst anytime
| |
| | rates." He expects it to become more of a
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| soon. It will slow down a little bit and
| |
| | buyer's market "and we will return to 10
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| we will get back to reality. Speculative
| |
| | to 15 percent price appreciation rates."
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| buying is slowing down a little bit due
| |
| | Jeff Kahn with Florida Beach Inc. of Fort
|
| to rising interest rates."
| |
| | Lauderdale agrees the market will
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| New condo developments are going ahead at
| |
| | gradually turn from a stong sellers'
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| a brisk pace, with available, affordable
| |
| | market to a more balanced one. "I believe
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| land being the major deciding factor
| |
| | that in 2006 home prices will begin to
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| determining where new developments are
| |
| | recede. Listing prices will become more
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| taking place. On the beach, much of the
| |
| | realistic."
|
| development is focused on "refurbishing"
| |
| | David Levin, a real estate industry
|
| older buildings. Small duplexes are being
| |
| | consultant based in Delray Beach is more
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| bought up, torn down, and replaced by
| |
| | blunt: "In 2006, residential unit sales
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| multi-floor condominiums.
| |
| | and prices will decrease 10 percent from
|
| As in the rest of Florida, the housing
| |
| | peak 2005 levels.
|
| market is complex and unpredictable. It
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| |
|
