Florida Housing Market Stabilizing Overall, Realtors Say; Sales Fluctuate By Region
In second financial quarter of 2006, the Florida housing market followed a national trend, showing signs of a market adjusting to a better balance between buyers and sellers.
As we reported earlier, sales of existing single-family homes amounted to 53,161 during the three-month period, a decrease of 27 percent compared to 72,870 homes sold during the same time a year ago, according to the Florida Association of Realtors.
Across Florida, the existing-home median sales rose by 9 percent to reach $254,800 in Q2. A year ago, it was $234,500. Going back to 2001, the second-quarter Florida median price was a mere $127,400, marking an increase of about 100 percent in five years.
The latest Florida economic outlook from the Realtors notes that the market is in the process of stabilizing with little change in overall sales volume expected over the balance of the year. Analysts report that the level of activity remains high historically — 2006 is expected to be the third best year for existing home sales.
Florida home mortgage rates have a lot to do with the downturn in housing market activity. According to Freddie Mac, the average rate for 30-year fixed-rate Florida home loans in the first quarter was 6.60 percent, up from last year’s 6.24 percent.
Market conditions do fluctuate by area, of course. In the Orlando real estate market, 8,189 existing homes sold for the quarter, good for a decrease of 23 percent compared to the 10,585 homes sold a year ago.
The market’s existing-home median sales price increased 18 percent to $265,500, while a year ago, it was $224,500. A total of 1,456 existing condos sold over the three-month period, up 24 percent from a year ago, while the existing-condo median price rose 1 percent to $163,500.
In Gainesville, one of the smaller markets in the state, 992 homes changed hands in the second quarter, down 24 percent compared to 1,297 homes sold a year ago. Over the same period, the existing-home median price rose a significant 21 percent to $214,300. At this point in 2005, it was $176,400.
A total of 426 existing condo units sold in the Gainesville market during the second quarter, up a significant 37 percent from a year ago, while the existing condo median price in the area rose 16 percent to $146,600. It seems North Florida real estate is finally catching up with the South in terms of meteoric price appreciation.
In greater Naples, considered one of the most overvalued markets in all of the U.S., sales of houses and condos slipped during the second quarter of the year in Collier County.
The number of houses sold in the county last quarter was 861, which is down 44 percent from the 1,548 houses sold in the Q2 of 2005. Figures released yesterday by the Realtors show that prices increased 2 percent compared to the second quarter of last year, up to $500,600.
With sky-high prices and more expensive Florida mortgage loans, numbers released last month showed the median June price in Collier actually dropped to $451,000. Condo sales decreased by 53 percent during the second quarter this year, while prices increased just 1 percent to $395,300.
