Florida Home Prices Fall in Lee County

The median price of an existing single-family home in Lee County fell 5 percent to $268,000 in March from $281,300 a year ago, according to a report released today by the Florida Association of Realtors.

March’s price was up slightly from February’s median price of $256,100.

The number of existing-home sales dropped 33 percent in March to 636, down from 955 a year ago. Sales were up compared to February, when 423 homes were sold. It may be related: the less properties cost, the more likely Florida mortgage borrowers will look to purchase them.

Statistics for Naples and Marco Island were not available, according to the report.

In Charlotte County, the price fell 14 percent to $193,000 from $224,700 a year ago while the number of sales fell 25 percent from 315 to 237.

In a separate report also released today by the National Association of Realtors, sales of previously owned homes in the U.S. declined more than predicted in March to the lowest level in almost four years, delaying housing’s recovery from a slump that’s shown some signs of reaching bottom.

Sales fell 11.3 percent compared with a year earlier.

The decline in sales, while partly weather related, may renew concern that the housing recession will linger and put at risk the Federal Reserve’s forecast for moderate economic growth. Bad credit Florida mortgage defaults are rising, and owners’ reluctance to reduce prices may keep more unsold properties on the market.

“I have no reason to believe that this particularly is the low,” said Kevin Logan, senior market economist at Dresdner Kleinwort in New York. “A lot of forces that drove sales higher in recent years are still weakening.”

In other words: it’s difficult to predict an end. The Florida housing market is unlikely to see the sort of boom in experienced from 2001-2006. At least not any time soon.