Falling Prices Good Sign in Real Estate Market: As home prices continued to fall nationwide over the past year, there is some good news on the horizon. Prices continued to fall from November to January; however, February was a month that showed some slight increases. One of those increases was in the price of new homes. The price of new homes rose 6.1% and the price for “existing homes rose .3%” sparking what may be a renewed confidence in home buying.
In Florida, hope remains. Although the Miami and Tampa Bay areas showed drops in prices in January, the drops were smaller than the average of the 20 metropolitan areas nationwide for which statistics were published. In fact, Miami showed gains in the price of homes in February and was one of four metropolitan areas out of the 20 that showed an increase in homes prices over the last twelve months. Slight changes in the price of homes may not be a great indicator of things to come, but it does lend hope for the coming months. If the economy can pick up and the number of jobs increases nationwide, then some stability in the housing market may indeed follow close behind.