CNN Money’s report for Florida was centred on the Palm Bay area. Palm Bay is on the east coast and is situated just south-east of Orlando and north of Miami. However, Florida’s unique ‘micro climate’ style economy means specific area reports are typically indicative of Florida’s market cycle as a whole.
Florida, generally being ahead of the game in the USA, fell earlier and further than any other area in the whole of the USA. Why? Because the area was overbuilt on expectations that baby boomers would flock to the area on-masse. These expectations were pushed back by the housing bust and economic crisis.
However, as home prices crashed and fell 37% between during the last four years alone, foreclosures ballooned. Prices in Florida are typically now 50% below replacement costs, but the market is expected to come roaring back with a double-digit jump next year.
The median home price in Florida is currently $141,000.