Existing home sales in Florida show signs of recovery

Existing home sales in Florida show signs of recovery. The U.S. housing market is finally on the mend after its most far-reaching collapse in 70 years. This could help rebuild consumer confidence and revive the economy.

For the first time in five years, sales of previously occupied homes for sale in Florida rose for the third consecutive month in June, while foreclosure property sales in Florida and the glut of homes on the market both declined.

The figures, released Thursday by the National Association of Realtors, and a string of rosy corporate earnings reports sparked a rally on Wall Street as the Dow Jones industrials rose above 9,000 for the first time since January.

“People believe that the worst is behind us,” said Julie Longtin, a real estate agent in Providence, R.I., an area that has suffered deeply from record foreclosures of risky loans.

Sales also have risen for three straight months in 40 out of 55 major metropolitan areas tracked by a Housing Report, also released Thursday. Prices rose during that period in about half of those areas.

Still, unlike past recessions, the turnaround in the Florida real estate sector is likely to have a muted effect overall. That’s largely because homebuilders are expected to keep bulldozers idle as long as they face competition from bargain-priced foreclosures in Florida. And it’s likely to take at least another year before job losses and foreclosures peak.

The Labor Department said Thursday the number of newly laid-off workers seeking jobless benefits rose 30,000 to a seasonally adjusted 554,000 last week, though the government said its report again was distorted by the timing of auto plant shutdowns.

Unemployment insurance claims have declined steadily since the spring, but most private economists and the Federal Reserve expect jobs to remain scarce and the unemployment rate to top 10 percent by year-end.

“We’re not going to see much growth in (home) sales until the labor market turns around,” said Patrick Newport, an economist. “People don’t move as much when they can’t find work.”

But companies should start hiring as their fortunes improve – and there were some early signs Thursday that’s starting to happen.

Ford Motor Co. surprised investors with a profit of $2.3 billion, due mainly to a huge gain for debt reduction, while manufacturing conglomerate 3M Co. and candy maker Hershey Co. raised their profit forecasts for the year.

The Dow Jones industrial average, the stock market’s best-known indicator, shot up almost 190 points Thursday to 9,069.29, its highest level since November, and all the big indexes gained more than 2 percent.

Analysts said signs that the housing market is finally, gradually turning around could help spur demand as buyers become less fearful of losing their shirts.

Property Prophets have many properties for sale in Florida including Four Bedroom PGA Village Home in Florida, Three Bedroom Villa in the PGA Village, Port St Lucie, Three Bedroom House in Kissimmee, Orlando, Three Bedroom Property in Newport Isles, Florida, Two Bedroom Apartment in Marco Island, Florida, Three Bedroom Waterfront Townhouse in Jupiter Harbour, Two Bedroom Ocean Front Apartment in Florida at Ocean Towers, and Apartment For Sale in Stuart, South Florida. Please visit www.property-prophets.com for more information.

Print this story

More News: