Florida Real Estate – Existing Home Sales Remain Slow in January

RISMEDIA, Feb. 27, 2008-The mortgage credit crunch and a sluggish economy continued to affect the sales pace of existing homes and condominiums in Florida in January. Statewide, sales of existing single-family homes totaled 6,737 last month while 9,360 homes sold in January 2007 for a decrease of 28% in the year-to-year comparison, according to the Florida Association of Realtors(R) (FAR).

But some industry analysts expect sales activity to improve by the second half of the year, especially if the increased loan limit caps within the federal government’s economic stimulus package can be implemented quickly. In the latest market outlook from the National Association of Realtors(R), Chief Economist Lawrence Yun says, “Existing-home sales have moved narrowly since last September, but when the full impact of higher loan limits for conventional mortgages begins to hit the market, there is likely to be a notable rise in home sales and prices. If higher limits are enacted very quickly, we’ll see a faster and more meaningful recovery by expanding safe, affordable financing in high-cost areas – that, in turn, would help to stimulate overall economic activity.”

Florida’s median sales price for existing single-family homes last month was $208,600; a year ago, it was $242,700 for a 14% decrease. The median is the midpoint; half the homes sold for more, half for less. In January 2003, the statewide median sales price for single-family homes was $142,900, an increase of about 46% over the five-year-period, according to FAR records.

The national median sales price for existing single-family homes in December 2007 was $206,500, down 6.5% from a year earlier, according to NAR. In California, the statewide median resales price was $475,460 in December; in Massachusetts, it was $323,000; in Maryland, it was $291,622; and in New York, it was $222,646.

Sales of existing condominiums in Florida also decreased last month, with a total of 2,252 condos sold statewide compared to 3,227 in January 2007 for a 30% decline, according to FAR. The statewide median sales price for condos last month was $190,200, down 11% from January 2007′s condo median price of $213,900. NAR reported the national median existing condo price was $222,200 in December 2007.

Last month, interest rates for a 30-year fixed-rate mortgage averaged 5.76%, down from the average rate of 6.22% in January 2007, 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 Tampa-St. Petersburg-Clearwater Metropolitan Statistical Area (MSA) reported 1,235 existing homes sold last month compared to 1,627 homes sold a year ago for a 24% decrease. The market’s median sales price for homes was $187,100; it was $220,100 in January 2007 for a 15% decrease. A total of 333 existing condos changed hands in the MSA last month, down 12% from the 378 condos sold the previous year. The existing condo median sales price in January was $159,500; a year ago, it was $183,600 for a 13% decrease.

“The greater Tampa Bay area has always been a desirable location in Florida,” says Alan Riley, FAR’s District 6 vice president and broker-owner of RE/MAX Affiliates in Seminole. “We’re blessed with a huge and beautiful coastline that offers waterfront in three directions, and we’re centrally located for access to all that the Sunshine State has to offer. In the Tampa Bay area, you can enjoy the amenities and excitement of city living or the peace and quiet of the countryside. And you’re only a half hour or 45 minutes at most from all the area’s major attractions, including sports and recreational activities.”

Among the state’s smaller markets, the Fort Pierce-Port St. Lucie MSA reported a total of 200 homes sold in January compared to 252 homes a year ago for a 21% decrease. The existing home median sales price was $175,300; a year ago, it was $241,000 for a 27% decrease. A total of 44 existing condos sold in the MSA last month compared to 51 condos the previous January for a 14% decrease. The market’s existing condo median price was $200,000; a year ago, it was $225,000 for a decrease of 11%.

Scott Wingfield, president of the Realtors Association of St. Lucie and general manager of Coldwell Banker Thomas J. White Realty Inc., notes the area’s thriving business and employment opportunities continue to attract new residents. “The high tech and bio-medical research industries are helping to strengthen our area’s diversified economy, yet we retain the appeal of a friendly, small-town community,” he says. “The St. Lucie area couldn’t be in a better location: With the turnpike and I-95, it’s easy to travel to destinations all across Florida, and we’re in a prime spot for business commuting and development.

Real Estate Hot Topics

Profit Center: Real Estate Tips, Training & Events

RISMedia Solutions

RISMedia on the Go

Today's Featured Listing