October Florida Mortgage Market Report: Pace of Home Sales Down
The pace of home sales in Florida continued to slow in October, though some markets report that the inventory of homes available for sale also eased last month.
A total of 12,773 existing single-family homes sold statewide last month, a decrease of 22 percent from the 16,407 homes sold during the previous October, according to the Florida Association of Realtors(FAR).
Statewide, the existing-home median price remained level at $242,500 last month; a year ago, it was $243,400, according to FAR. Therefore, those considering Florida mortgages can at least take comfo
rt in reasonable prices in the state.
Future of Florida housing market
Following current market adjustments, existing-home sales in the U.S. are expected to remain at about the same level next year, according to NAR’s latest market outlook, which predicts 2006 to be the third strongest sales year on record nationally.
NAR Chief Economist David Lereah notes that conditions for buyers have improved, Florida mortgage interest rates remain near historic lows and most sellers - those who have been in their home for a normal period of homeownership - are still seeing very healthy returns on their investment.
Looking to the Florida condominium market, sales of existing condos also decreased in October, with a total of 3,440 condos sold statewide compared to 5,001 in October 2005 for a 31 percent decrease, according to FAR. The statewide median sales price for condos last month was $209,200; a year ago, it was $213,600 for a 2 percent decrease.
According to Freddie Mac, a 30-year fixed-rate mortgage averaged 6.36 percent last month, up from 6.07 percent in October 2005. FAR’s sales figures reflect closings, which typically occur 30 to 90 days after Florida home mortgage contracts are written.
Breaking down various housing markets
Among the state’s larger markets, the Fort Lauderdale housing market reported 591 existing homes sold last month, compared to 561 homes sold a year ago for a 5 percent increase.
The market’s median existing home price decreased 5 percent at $349,400; a year ago, it was $368,900. A total of 580 existing condos changed hands in Fort Lauderdale in October for a 21 percent decrease over the 737 condos sold the previous year.
“Inventory levels appear to be stabilizing and sales prices also are leveling,” says Dorine Longhini, president of the Realtor Association of Greater Fort Lauderdale and manager of the Lighthouse Point office of Coldwell Banker Residential Real Estate Inc. “This is good for buyers, who have more options in the market, while the biggest impact has been on speculative buyers.”
Of the state’s smaller markets, the Fort Pierce-Port St. Lucie sector reported a total of 367 existing homes sold in October - compared to 334 homes sold a year earlier for a 10 percent increase in Florida mortgage demand.
The area’s median existing home sales price was $242,400 last month; a year ago, it was $263,500 for an 8 percent decrease. Fifty-three existing condos sold in the area last month for a 31 percent decrease from the 77 condos sold a year ago.
“I see evidence that the real estate market is on the rise,” says Jerry Mabus, president of the Realtors Association of St. Lucie and broker associate with All Florida Realty Services in Port St. Lucie. “We’re on the cusp of growth in a new direction: School officials here say that they’re projected to spend $2 billion on new schools through 2025; and since May, we’ve had 3,000 new students coming into our schools.
We have five quality universities that have developed satellite campuses here in St. Lucie County and Torrey Pines molecular research institute is moving its headquarters here. With this kind of growth comes greater economic stability.”
