Regional Spotlight: Florida’s Existing Home Sales Still Stabilizing in July 2007

RISMEDIA, August 29, 2007-With positive economic conditions such as low mortgage interest rates and job growth continuing in Florida, statewide sales of existing single-family homes totaled 11,674 in July and were closer to activity in July 2001 and 2002 – before the housing boom years – than the July 2006 figures, when 15,378 homes sold for a 24% decrease in the year-to-year comparison, according to the Florida Association of Realtors(R) (FAR).

Florida’s median sales price for existing single-family homes last month was $237,500; a year ago, it was $250,400 for a 5% decrease. The median is the midpoint; half the homes sold for more, half for less. In July 2002, the statewide median sales price for single-family homes was $141,700, for an increase of 67.6% over the five-year-period, according to FAR records.

In June 2007, the national median sales price for existing single-family homes was $230,300, up 0.1% from the previous year, according to the National Association of Realtors(R) (NAR). In California, the statewide median resales price was $594,260 in June; in Massachusetts, it was $364,000; in Maryland, it was $325,427; and in New York, it was $250,000.

NAR’s latest market outlook calls for existing home sales to gain momentum by the end of the year, with broader improvement in sales activity in 2008. “Existing-home sales should be relatively stable over the next few months, holding in a modest range, with some pent-up demand growing from buyers who’ve been on the sidelines,” says NAR Senior Economist Lawrence Yun. While noting that sales could be temporarily affected by recent mortgage industry disruptions, Yun added that the “fundamental momentum clearly suggests stabilizing price trends in many local markets.”

Sales of existing condominiums in Florida also decreased last month, with a total of 3,610 condos sold statewide compared to 4,449 in July 2006 for a 19% decline, according to FAR. The statewide median sales price for condos last month was $193,900, down 7% from July 2006′s condo median price of $209,100. NAR reported the national median existing condo price was $228,900 in June 2007.

Last month, interest rates for a 30-year fixed-rate mortgage averaged 6.70%, according to Freddie Mac, which was lower than the average rate of 6.76% in July 2006. 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 Fort Lauderdale Metropolitan Statistical Area (MSA) reported 559 existing homes sold last month compared to 721 homes sold a year ago for a 22% decrease. The market’s median sales price for homes was $373,700; it was $380,400 in July 2006 for a 2% decrease. A total of 562 existing condos changed hands in the MSA last month, down 19% from the 696 condos sold the previous year. The existing condo median sales price in July was $187,200; a year ago, it was $209,100 for a 10% decrease.

“We’re getting the word out that this is a great time to buy a home in the Fort Lauderdale area,” says Christine Hansen, president of the Realtor Association of Greater Fort Lauderdale and broker-owner of Century 21 Hansen Realty Inc. “It’s taken some time for buyers and sellers to adjust to the changing market, and now we’re seeing more interest and more offers. Fort Lauderdale is still a wonderful place to live, with beautiful beaches, diverse businesses and great job opportunities.”

Among the state’s smaller markets, the Fort Pierce-Port St. Lucie MSA reported a total of 371 homes sold in July compared to 400 homes a year ago for a 7% decrease. The existing home median sales price was $231,300; a year ago, it was $259,000 for an 11% decrease. A total of 48 existing condos sold in the MSA last month compared to 59 condos the previous July for a 19% decrease. The market’s existing condo median price was $166,700; a year ago, it was $188,300 for a decrease of 11%.

Sheri Wetzel, president of the Realtors Association of St. Lucie and broker with RE/MAX Midway, says that home sales are returning to a sustainable pace in the Fort Pierce-Port St. Lucie area. “This is a growing area in a convenient location for travel around the state,” she says. “We have a beautiful coastline, and we’re gaining new industry and businesses. Mortgage rates are still very favorable and buyers have more options right now. For most people, buying a house is a long-term investment in a place
to call home for themselves and their families. It’s a decision that deserves time, attention and the expertise of a Realtor.”

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