Hot Month of Florida Home Sales

Based on recent numbers from the Florida Association of Realtors (FAR), 15,272 existing homes were sold in September 2004 across Florida, marking an impressive increase for this year’s statewide sales of 20,368 in the same month.

However, FAR officials warn that the 33% statewide increase from September 2004 to September 2005 may not be reflective of true market activity. The concern becomes even more palpable when one considers local market increases, such as in Orlando, where existing home sales jumped 40 percent from 2,2,12 in September 2004 to 3,105 last month. President of the association, Frank Kowalski, explained the situation further.

“Home sale closings were clearly affected by the four hurricanes that struck Florida in August and September last year,” he said. “Closings generally occur 30 to 90 days after sales contracts are written. And since most insurers do not write homeowners’ policies when a hurricane threatens, many buyers repeatedly were unable to obtain coverage, which delayed closings. All of this influences the comparisons between the closed sales reported in markets across the state last month and closed sales during September 2004.”

Local Realtor boards/associations, real estate firms and Multiple Listing Services in many areas across Florida also were directly affected by last year’s hurricanes, which in turn impacted the collection of data for several months. In the wake of the storms, resales activity also was impacted when lenders postponed closings for property re-inspections or repairs. Kowalsi added that home sales were still strong and the median price continuing to rise.

The statewide median sales price in September rose 28% to $247,800; a year ago, it was $193,400. Florida’s year-to-date figures show that a total of 197,523 homes sold statewide through September compared to 187,774 homes changing hands during the same period last year, a 5%increase.