Florida Housing Market Leads Double Digit Home Price Appreciation Increase

Across the nation, single-family home prices finished 2005 with gains of more than 10 percent for the year, according to the latest report from the National Association of Realtors.

The median home price in the United States jumped 13.6 percent last year, thanks mostly to big increases over the first three quarters. By the fourth quarter, when the pace of increases slowed, the median home sold for $213,900.

About half of the markets surveyed — 72 of 145 — showed double digit increases in appreciation.

“Although home sales have eased, the tremendous momentum in price appreciation was sustained in the fourth quarter because tight inventories still favored sellers,” NAR chief economist David Lereah said in a statement.

The hottest metro market in the United States in 2005 was Phoenix, Ariz., where the median price soared 48.9 percent to $268,400. It barely edged out Cape Coral-Ft. Myers, where prices soared 48 percent to $293,100.

Florida cities claimed six of the top 10 spots - rated by percentage increase - with Orlando, Ocala, Tampa, Sarasota, and Daytona all recording gains of 28.5 percent or more. .

This is further evidence that the Florida home loan industry is going strong. Sellers are seeing decent prices on their homes, while buyers are also able to find reasonable deals.