Florida Median Home Prices Rise Against National Trend

Whoa, there!

According to a report released this morning real estate gains came to an abrupt halt in the first quarter of 2006, with the median price of a U.S. home falling 3.3 percent from last year’s fourth quarter.

The National Association of Realtors states that prices were basically flat or lower during the quarter, as inventories of houses for sale rose and their time spent on the market lengthened; far from an ideal situation for sellers.

Overall, home prices were still up 10.3 percent from a year earlier. Houses sold in the second and third quarters, for example, tend to be of slightly bigger average size and slightly more expensive. But most of that gain was recorded in the first two quarters of the 12-month period.

A national pricing drop

In the first quarter, median prices nationwide fell from $225,300 in the fourth quarter of 2005, to $217,900, a decrase of 3.3 percent. Many major metro areas showed slight declines, including Washington D.C. (down 2.4 percent), Los Angeles (down 0.8 percent) and Chicago (down 0.8 percent).

Florida, however, showed strong Florida home loan action and an increase in prices almost across the entire board.

Winners included Gainesville, (up 31.9 percent), Ocala , (30.8 percent) and Deltona - Daytona Beach - Ormond Beach, (25.4 percent).

The state of condo prices

Condo prices faired worse, only gaining 5.2 percent nationwide year-over-year. They actually fell 0.8 percent in the West region and gained just 0.8 percent in the Midwest. The biggest regional gainer was in the Northeast, where condo prices gained 9.2 percent. They fell 5 percent in both Birginia Beach and Palm Bay, Florida.

The report quoted NAR’s chief economist David Lereah saying, “With the supply of homes picking up very nicely in many areas of the country, pressure is coming off of home prices.”

Lereah, and other industry insiders, are optimistic that the housing market will soon return to growth. Those seeking a Florida home mortgage loan and those hoping to sell should both be in good shape.