Charlotte County Mirrors National, Florida Housing Market Trends
Just blame it on… the weather?
That, at least in part, is how the National Association of Realtors is explaining the worst drop in home sales in 18 years. But residents of Charlotte County know there’s more to it than that.
“Unusually bad winter weather in February curtailed home shopping, slowing sales that closed in March, which may have been dampened further by a decrease in subprime lending volume,” is how the NAR began its monthly report.
After rising three straight months, total home sales - including single-family, townhomes, condominiums and co-ops - took an 8.4 percent tumble to a seasonally adjusted annual rate of 6.12 million units in March.
That’s down from February’s rate of 6.68 million, at a period that should be reflecting a seasonal spike traditionally seen in spring.
The Florida Association of Realtors reported “sales of existing homes remained at a sustainable pace in March, with buyers continuing to see favorable [Florida mortgage] rates, as well as a range of housing options available across the state.”
Sustainable or not, sales of single-family, existing homes were down 4 percent from last year statewide. And with a 14 percent drop, Charlotte County was the hardest hit in the median sales price category, with the median price tag dropping from $224,700 in 2006 to $193,000 last month.
Fortunately, the county’s 25 percent drop in Realtor sales was lower than many other areas, which showed Naples-Marco Island at rock bottom with a 47 percent drop.
In contrast, the Sarasota-Bradenton area was down 9 percent in median sales price, but was one of only two areas - the leader being Panama City - to show an increase in Realtor sales.
In the condo category, Charlotte County suffered not only a dip of 15 percent in the median sales price, but also a 47 percent decrease in Realtor sales, fourth behind Orlando, Pensacola and Tampa.
Rising Florida mortgage loan foreclosures are impacting home inventories in some markets, according to housing industry analysts, who predict that tighter lending standards and the fallout from subprime loans will slow any recovery.
NAR Chief Economist David Lereah noted that most markets are demonstrating healthy economic activity and thus can absorb an increase in foreclosures.
In fact, 2007 is expected to be the fourth-highest year on record for existing home sales, according to NAR’s latest housing market outlook.
“Housing remains a great long-term investment,” Lereah said. “As home sales moderate, overall home prices will be essentially flat this year. The good news is that inventories remain well below the levels experienced during the last housing downturn in the early 1990s, and supplies are close to balance in many areas.”
Last month, rates for a 30-year fixed Florida home mortgage loan averaged 6.13 percent, a drop from the average rate of 6.32 percent in March 2006. Sales figures reflect closings, which typically occur 30-90 days after a contracts is written.
NAR President Pat Vredevoogd Combs, from Grand Rapids, Mich., and vice president of Coldwell Banker-AJS-Schmidt, said market conditions are clearly favoring buyers.
“It’s a good time to buy, in part, because home buyers are not pressured to make quick decisions,” he said.
“We’re in a window of low interest rates with a plentiful supply of homes on the market and flat prices in most areas. First-time buyers now have more power to negotiate with sellers for help on down payment or closing costs.”
SOURCE: Charlotte Sun-Herald
