Florida Realtors Report on Home Sales, Interest Rates

Despite favorable Florida mortgage rates, strong job growth and other positive economic conditions, statewide sales of existing single-family homes in the state were down last month.

They totaled 12,954 in June and were closer to activity levels in June 2002 – prior to the housing boom years – than June 2006 figures when 18,607 homes sold for a 30 percent decrease in the year-to-year comparison, according to the Florida Association of Realtors (FAR).

Florida’s median sales price for existing single-family homes last month was $243,200; a year ago, it was $256,200, a 5 percent decrease. In June 2002, the statewide median sales price for single-family homes was $142,400, for an increase of 70.8 percent over the five-year-period, according to FAR records.

Existing home sales are expected to recover in 2008 and pick up by the end of this year, according to NAR’s latest Florida real estate market outlook.

“It appears some buyers are simply waiting for more signs of stability before they get serious about getting into the market,” says NAR Senior Economist Lawrence Yun. “The market is underperforming when you consider positive fundamentals such as the strength in job creation, economic growth, favorable Florida mortgage interest rates and flat home prices.”

Sales of existing condominiums in Florida also decreased last month, with a total of 4,004 condos sold statewide compared to 5,532 in June 2006 for a 28 percent decline, according to FAR. The statewide median sales price for condos last month was $206,100, down 3 percent from June 2006’s condo median price of $213,200. NAR reported the national median existing condo price was $228,200 in May 2007.

Last month, interest rates for a 30-year fixed-rate Florida mortgage averaged 6.66 percent, according to Freddie Mac, lower than the average rate of 6.68 percent in June 2006. FAR’s sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.