Florida Realtors: Sales Down, Great Time to Buy
With positive economic conditions such as low Florida mortgage rates and job growth continuing in the state, sales of existing single-family homes totaled 11,674 in July and were closer to activity in July 2001 and 2002 – before the housing boom years – than the July 2006 figures.Last year, 15,378 homes sold, good for a 24 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 $237,500; a year ago, it was $250,400. In July 2002, the statewide median sales price for single-family homes was $141,700, for an increase of 67.6 percent over the five-year-period.
NAR’s latest national market outlook calls for existing home sales to gain momentum by the end of the year, with broader improvement in sales activity in 2008.
“Existing-home sales should be relatively stable over the next few months, holding in a modest range, with some pent-up demand growing from buyers who’ve been on the sidelines,” says NAR Senior Economist Lawrence Yun. While noting that sales could be temporarily affected by recent Florida mortgage industry disruptions, Yun added that the “fundamental momentum clearly suggests stabilizing price trends in many local markets.”
Sales of existing condominiums in Florida also decreased last month, with a total of 3,610 condos sold statewide compared to 4,449 in July 2006 for a 19 percent decline, according to FAR. The statewide median sales price for condos last month was $193,900, down 7 percent from July 2006’s condo median price of $209,100. NAR reported the national median existing condo price was $228,900 in June 2007.
Last month, interest rates for a 30-year fixed-rate Florida mortgage averaged 6.70 percent, according to Freddie Mac, which was lower than the average rate of 6.76 percent in July 2006.
Among the state’s larger markets, the Fort Lauderdale housing market reported 559 existing homes sold last month compared to 721 homes sold a year ago for a 22 percent decrease. The market’s median sales price for homes was $373,700; it was $380,400 in July 2006.
“We’re getting the word out that this is a great time to buy a home in the Fort Lauderdale area,” says Christine Hansen, president of the Realtor Association of Greater Fort Lauderdale and Florida mortgage broker-owner of Century 21 Hansen Realty Inc. “It’s taken some time for buyers and sellers to adjust to the changing market, and now we’re seeing more interest and more offers. Fort Lauderdale is still a wonderful place to live, with beautiful beaches, diverse businesses and great job opportunities.”
Among the state’s smaller markets, the Fort Pierce-Port St. Lucie region reported a total of 371 homes sold in July compared to 400 homes a year ago.
The existing home median sales price was $231,300; a year ago, it was $259,000 for an 11 percent decrease. A total of 48 existing condos sold in the market last month, compared to 59 condos the previous July for a 19 percent decrease.
