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