ORLANDO, Fla., July 25, 2007 – Despite favorable mortgage interest rates, strong job growth and other positive economic conditions, statewide sales of existing single-family homes in Florida totaled 12,954 in June and were closer to activity levels in June 2002 – prior to the housing boom years – than June 2006 figures when 18,607 homes sold for a 30 percent decrease in the year-to-year comparison, according to the Florida Association of Realtors® (FAR).
Florida’s median sales price for existing single-family homes last month was $243,200; a year ago, it was $256,200 for a 5 percent decrease. The median is the midpoint; half the homes sold for more, half for less. In June 2002, the statewide median sales price for single-family homes was $142,400, for an increase of 70.8 percent over the five-year-period, according to FAR records.
In May 2007, the national median sales price for existing single-family homes was $223,000, down 2.4 percent from the previous year, according to the National Association of Realtors® (NAR). In California, the statewide median resales price was $591,180 in May; in Massachusetts, it was $355,000; in Maryland, it was $312,683; and in New York, it was $239,000.
Existing home sales are expected to recover in 2008 and pick up by the end of this year, according to NAR’s latest market outlook. “It appears some buyers are simply waiting for more signs of stability before they get serious about getting into the market,” says NAR Senior Economist Lawrence Yun. “The market is underperforming when you consider positive fundamentals such as the strength in job creation, economic growth, favorable mortgage interest rates and flat home prices.”
Sales of existing condominiums in Florida also decreased last month, with a total of 4,004 condos sold statewide compared to 5,532 in June 2006 for a 28 percent decline, according to FAR. The statewide median sales price for condos last month was $206,100, down 3 percent from June 2006’s condo median price of $213,200. NAR reported the national median existing condo price was $228,200 in May 2007.
Last month, interest rates for a 30-year fixed-rate mortgage averaged 6.66 percent, according to Freddie Mac, lower than the average rate of 6.68 percent in June 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 Sarasota-Bradenton Metropolitan Statistical Area (MSA) reported 797 existing homes sold last month compared to 762 homes sold a year ago for a 5 percent increase. The market's median sales price for homes was $292,700; it was $326,800 in June 2006 for a 10 percent decrease. A total of 276 existing condos changed hands in the MSA last month, down 7 percent from the 297 condos sold the previous year. The existing condo median sales price in June was $256,300; a year ago, it was $287,500 for an 11 percent decrease.
“Several factors are influencing the market in the Sarasota-Bradenton area,” says May Aston, president of the Manatee Association of Realtors and real estate consultant with RE/MAX Gulfstream Realty. “Here in Manatee County, our location and beautiful beaches are central to the major airports and attractions. Inventory is plentiful, and sellers have adjusted their price expectations, which helps make homes more affordable again.”
Among the state’s smaller markets, the Tallahassee MSA reported a total of 422 homes sold in June compared to 512 homes a year ago for an 18 percent decrease. The existing home median sales price was $187,900; a year ago, it was $180,500 for a 4 percent increase. A total of 42 existing condos sold in the MSA last month compared to 41 condos the previous June for a 2 percent increase. The market’s existing condo median price was $161,500; a year ago, it was $141,000 for an increase of 15 percent.
Robby Turner, president of the Tallahassee Board of Realtors and broker-owner with Robby Turner Realty, says that the area’s economy remains strong and home sales are returning to a more normal pace. “As the state capital, Tallahassee is fortunate to have a stable, government-based economy, as well as a positive employment and job outlook due to our higher education institutions and a vibrant healthcare industry,” he says. “We’re the center of an eight-county region that offers plenty of room to grow.”
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; the other compares the volume of existing, condominium sales and median sales price in June 2007 to June 2006 based on Realtor transactions.
Single-Family: Download June_2007_home_chart.pdf
Condominium: Download June_2007_condo_chart.pdf
The Florida Association of Realtors (FAR), the voice for real estate in Florida, provides programs, services, continuing education, research and legislative representation to its 150,000 members in 68 boards/associations.
© 2007 FLORIDA ASSOCIATION OF REALTORS®
SOURCE: Florida Association of REALTORs Press Release
John Elwell - REALTOR
Bill Nye Realty, Inc.
Licensed in Florida