Despite Hurricanes, Market Remains Strong
According to the Florida Association of Realtors, home prices across Florida continued to rise in October as sales dropped, notably in southern areas directly impacted by Hurricane Wilma’s march across the state.
According to the association, following the storm some lenders required a home inspection of properties before they would release mortgage money. Some insurers stopped issuing new policies as the hurricane neared.
Despite storm problems the state’s median home price rose 28 percent in October to $241,000, from $188,800 in October 2004. In September 2005, the median price was $247,800. FAR records show the statewide median sales price in October of 2000 was $116,100. This represents a 107 percent increase over the five-year period.
Despite cosistently strong prices many realtors across the state report gains in housing supply, giving buyers a larger selection of homes to consider. Across the state 16,029 existing single-family homes sold last month. This represents a 5 percent decline compared to the same period of time last year.
Interest rates for a 30-year fixed-rate mortgage averaged 6.07 percent in October, a slight increase from the average 5.72 percent in October 2004. These figures reflect the lock-in rate for closings that typically occur 30 to 90 days after sales contracts are written.
According to statistics in the Daytona Beach metropolitan statistical area (MSA) 1,037 homes sold in October for an 18 percent gain over 881 home sales a year ago. In one of the state’s larger markets the median home price rose 35 percent over the same time period a year ago- from $165,000 in October 2004 to $223,300 in October 2005.
Other larger MSAs with strong sales and price increases include Jacksonville, with 1,504 home sales in October for a 38 percent gain over October 2004 sales numbers; and Tampa-St. Petersburg-Clearwater, with 3,735 homes sold for an increase of 4 percent over the same time period. Prices also rose in both markets over the year. In Jacksonville, the median price rose 20 percent to $191,600; in Tampa-St. Petersburg-Clearwater the median price rose 35 percent to $225,700.
Among the state’s smaller MSAs, Lakeland-Winter Haven posted a 24 percent gain in home sales in October, with 513 homes changing hands compared to 414 homes a year ago. The market’s median sales price rose 50 percent in October to $173,500; last year, it was $115,500.
Additional MSAs that posted gains in the number of homes sold in October include Ocala- 482 homes sold representing a 15 percent jump; and Tallahassee- 393 homes sold representing a 18 percent increase. In addition the median sales price in those markets rose. In Ocala- 38 percent to $159,200; and in Tallahassee- 19 percent to $172,700.
Despite increased interest rates, mortgages continue to be sought.
