Sellers who are still moaning over falling house prices can take comfort in this recent fact.  New research shows that current home values are just about where they would have been if the real estate bubble had never inflated and burst.

A long-term view of the market reveals that, even though prices rose and fell dramatically in recent years, they appear to have settled back into historic patterns.  An analysis conducted by Stan Smith, a University of Central Florida finance professor shows that homeowners who purchased prior to 2005 are within 6 percent of where they would have been had there not been a bubble.  In fact, prices now are about where they would have been had the dramatic rise and fall never occurred.  The S&P/Case-Shiller Home Price Indices—the leading measure of U.S. home prices—further illustrates that as of the 2nd quarter of 2009 average home prices across the United States are at similar levels to what they were in early 2003.

Real estate professionals are also reporting an increase in activity.  According to a HomeGain survey conducted earlier this month of more than 1,000 agents across the country the vast majority expect prices to remain the same or increase in the next six months.

Even more encouraging is that most people—83 percent—still believe that buying a home is a good financial decision, according to a recent survey from NAR.  FAR President Cynthia Shelton explains that, “Many homebuyers are realizing that this is the time to buy—with a good selection of housing inventory, affordable pricing and low mortgage rates.”  “In fact, three-fourths of those responding to the 2009 National Housing Pulse Survey said they think now is a good time to purchase a home, a number that has increased steadily the past two years,” Shelton added.

Clearly, there is no evidence of Americans falling out of love with homeownership as over two thirds of households in our country still prefer to own their home.  In fact the FAR web site “Great time to buy Florida” presents 15 positive facts about real estate in the Sunshine State, some of which are noted below.

·         The time is right. Home sales volumes are rising again – a clear signal that today’s “buyers market” may be changing soon.

·         High inventory levels. Conditions are ideal for buyers to find their dream home as inventory is still plentiful in all price ranges.

·         Low mortgage rates. Mortgage rates are still at the lowest levels since the 1960s.

·         Incentives to buy. Federal, state and local housing programs can help buyers make that big purchase.

·         A long-term-growth state. Long-term economic and demographic trends continue to favor Florida. By 2010 economists forecast that Florida will be the third-most-populated state in the country. Florida has been one of the 10 fastest-growing states in the U.S. for each of the past seven decades. Population growth will continue to provide a foundation for other economic development, such as new jobs and growing incomes. 

·         A migration magnet. Even with a slowdown in economic growth nationally, projections call for Florida’s population to return to more normal growth levels translating to a lot of new buyers coming into the market.

·         A favored retirement destination. Demographic studies show that the Sunshine State’s mild climate and outdoor amenities continue to make Florida a top retirement destination.

·         Business-friendly state. Florida has always been a business-friendly state – no state income taxes, plus incentives from local municipalities encourage businesses to set up shop here.

·         Positive investment outlook.  Quarterly studies conducted by the University of Florida’s Bergstrom Center for Real Estate Studies show people have not lost their faith in Florida as a place to be and a place to invest.

·         Homeownership has value. Studies show that home equity is still the largest single source of household wealth.

·         An unsurpassed lifestyle. Remember what continues to attract people to Florida:  beautiful beaches, fabulous weather and a friendly business climate, with no state income tax.

 http://media.floridarealtors.org/GreatTimeToBuy/