South Florida Housing Prices Defy Critics

What housing bubble?

Despite all the cries about the real estate bust, year-end median prices for both existing single-family homes did manage to rise in every part of the South Florida housing market, with the exception of a 1 percent drop in median single-family home prices in West Palm Beach-Boca Raton.

In numbers released Thursday, the Florida Association of Realtors put the single-family home median price increase at 2 percent in Fort Lauderdale, even though the number of homes sold declined 26 percent, to 8,373 homes in 2006 from 11,331 homes the year before.

In Miami, the median price rise was 7 percent, to $375,800 from $351,200, as the number of single-family homes sold fell 21 percent, to 8,692 homes from 11,016 homes.

Even with its 1 percent decline, the median home price in West Palm Beach-Boca Raton remained the highest in the region. The number of homes sold dropped 37 percent, however, largely due to Florida mortgage loan applicants hesitating to pay such prices.

“The housing market transitioned to a more sustainable balance during 2006, coming off the record-setting sales pace and price gains of the previous five years,” FAR President Nancy Riley said.

Statewide, median prices rose 6 percent, to $248,300 from $235,200. The number of homes sold dropped 28 percent, though, to 180,037 homes from 248,575 homes.
Near South Florida, the number of homes sold fell:

- 25 percent in Fort Myers-Cape Coral, as median prices fell 3 percent, to $272,300 from $281,900

- 28 percent in Fort Pierce-Port St. Lucie, as median prices were basically flat at $253,200, up from $254,000

- 41 percent in the Naples housing market, as median prices were flat at $486,500. The Naples numbers are incomplete, though. FAR said it did not have information available from the Marco Island Association of Realtors for April and November 2006, or from the Naples Area Board of Realtors and Association of Real Estate Professionals for December 2006.

- 24 percent in Punta Gorda, as median prices fell 1 percent, to $218,000 from $219,700.