Brevard County Housing Market Slump Continues

Two reports released Monday showed fairly significant declines in the Brevard County housing market during the third quarter.

Although the numbers vary, both reports — covering July, August and September — spotlight where the once-hot housing market has gone.

The Florida Association of Realtors said sales dropped 34 percent in the third fiscal quarter, compared with the same three-month period in 2005. There were 1,490 single-family homes sold in the third quarter of this year, down from 2,243 in the same period a year ago.

• In addition, the median sales price dropped 9 percent in that period, to $215,500 from $237,800 a year ago.
• The Brevard median sales price fell to $193,600 in the third quarter, from $212,800 during the third quarter of 2005.

Brevard’s real estate market mirrors what’s happening in many areas of the Sunshine State, where home sales — fueled by low Florida home mortgage rates and creative loans — once were red hot, but since have lost steam.

Lance VandeBerg, the incoming president of the Space Coast Association of Realtors, said that although no one has a crystal ball for the local real estate market, most Realtors expect a turnaround in January.

“We’re starting to enter our slow period for the holidays,” said VandeBerg. “Florida mortgage rates are still good, so we’re hoping things will turn around in January.”

Jason Hart, a co-owner of the Suntree-based Hart to Hart Real Estate, said sales have picked up in the past few weeks, but one thing he noticed about the Brevard County market is there still is a considerable amount of new-home inventory that must be absorbed.

Also, there are more positive comments about the Florida housing market, especially around Brevard County, from out-of-state buyers vs. local sellers.

“The people coming down to the area are just looking for a good deal. The locals are awaiting to see what the market conditions are going to do,” Hart said.

Brevard’s record-high median sales price was $248,700, set in August 2005, according to the Florida Association of Realtors. The median price for home sales in September, the latest monthly statistics available, was $206,100.

Because buyers have more choice and inventories have gone up, sellers have to reduce their prices and negotiate when buyers make an offer where once they didn’t.