ORLANDO, Fla., Jan. 24, 2008 – Sales of existing homes and condominiums in Florida continued to reflect the impact of a sluggish economy and mortgage financing issues in December. Statewide, sales of existing single-family homes totaled 8,828 last month while 12,758 homes sold in December 2006 for a decrease of 31 percent in the year-to-year comparison, according to the Florida Association of Realtors® (FAR).
But some industry analysts see signs that the housing market may be starting to turn around, with increasing stability in the mortgage sector. National Association of Realtors® Senior Economist Lawrence Yun notes in NAR’s latest market outlook that consumers appear to be waiting for “additional signs of market stabilization. There are more people with financial capacity now than in 2005, but many are trying to market-time their purchase” – which makes the exact timing of the housing recovery more uncertain, he says. Still, Yun says that 2007 should be the fifth highest year on record for existing-home sales.
Florida’s median sales price for existing single-family homes last month was $208,900; a year ago, it was $239,900 for a 13 percent decrease. The median is the midpoint; half the homes sold for more, half for less. In December 2002, the statewide median sales price for single-family homes was $145,300, for an increase of 43.8 percent over the five-year-period, according to FAR records.
The national median sales price for existing single-family homes in November 2007 was $208,700, down 3.7 percent from a year ago, according to NAR. In California, the statewide median resales price was $488,640 in November; in Massachusetts, it was $330,000; in Maryland, it was $293,421; and in New York, it was $215,000.
Sales of existing condominiums in Florida also decreased last month, with a total of 2,693 condos sold statewide compared to 3,912 in December 2006 for a 31 percent decline, according to FAR. The statewide median sales price for condos last month was $187,100, down 8 percent from December 2006’s condo median price of $202,500. NAR reported the national median existing condo price was $221,100 in November 2007.
Last month, interest rates for a 30-year fixed-rate mortgage averaged 6.10 percent, down from the average rate of 6.14 percent in December 2006, according to Freddie Mac. FAR’s sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.
Among the state’s larger markets, the West Palm Beach-Boca Raton Metropolitan Statistical Area (MSA) reported 467 existing homes sold last month compared to 607 homes sold a year ago for a 23 percent decrease. The market’s median sales price for homes was $337,900; it was $368,200 in December 2006 for an 8 percent decrease. A total of 419 existing condos changed hands in the MSA last month, down 18 percent from the 508 condos sold the previous year. The existing condo median sales price in December was $161,400; a year ago, it was $215,700 for a 25 percent decrease.
“Our area is a great place to live, with beautiful beaches, diverse businesses and numerous cultural and leisure activities,” says John Mike, president of the Realtors Association of the Palm Beaches and a Realtor associate with Prudential Florida WCI Realty. “In December, people are ready to buy because they want to be able to take advantage of Florida’s homestead exemption for the year. As prices have adjusted to more realistic levels from the highs at the peak of the boom years, it’s opened up housing opportunities for many more people. And with plentiful inventory, it means that buyers are able to find exactly what they’re looking for from a wide range of options.”
Among the state’s smaller markets, the Gainesville MSA reported a total of 179 homes sold in December compared to 237 homes a year ago for a 24 percent decrease. The existing home median sales price was $188,300; a year ago, it was $194,200 for a 3 percent decrease. A total of 48 existing condos sold in the MSA last month compared to 66 condos the previous December for a 27 percent decrease. The market’s existing condo median price was $135,000; a year ago, it was $161,500 for a decrease of 16 percent.
J. Parrish, president of the Gainesville Alachua County Association of Realtors and president of Coldwell Banker M.M. Parrish, Realtors, notes the area’s diverse business and employment opportunities continue to attract new residents. “At the height of the real estate boom years, two to two and a half years ago, the Gainesville area posted more realistic, sustainable sales and price gain figures,” he says. “Our colleges, the university system, extensive healthcare industry and other governmental entities really drive the local economy and provide a strong underlying economic foundation.”
Two charts showing statistics for Florida and its 20 MSAs are attached. One chart compares the volume of existing, single-family home sales and median sales prices price in December 2007 to December 2006 based on Realtor transactions; the other compares the volume of existing, condominium sales and median sales price December 2007 to December 2006 based on Realtor transactions.
The Florida Association of Realtors®, the voice for real estate in Florida, provides programs, services, continuing education, research and legislative representation to its 150,000 members in 67 boards/associations.
