Florida's housing market shows price gains in January

Florida's housing market shows price gains in January
January existing-home sales ease, says NARORLANDO, Fla. -- Feb. 28, 2006 -- Coming off several years of blistering home sales at a record pace, Florida's housing sector followed the national trend in January and showed signs of some market adjustments, according to the Florida Association of Realtors® (FAR). Still, the statewide median sales price for existing single-family homes last month rose 21 percent to $248,600; a year ago, it was $205,100.

Housing industry analysts nationwide noted it may take a while for home price growth to cool, following a long period of short supply and sellers accustomed to exceptional price gains. In January 2001, the statewide median sales price for single-family homes was $115,800, which means a gain of about 114.6 percent over the five-year-period, according to FAR records.

Realtors from across the state report that more homes are available for sale, improving what had been tight inventories in many markets. Statewide, sales of single-family existing homes totaled 12,815 in January compared to 15,745 homes sold a year ago for a 19 percent decrease.

2006 FAR President Mike Dooley notes that the market is coming into better balance between buyers and sellers. "For years, many areas in Florida reported tight inventories of homes available for sale," he says. "Now that buyers are seeing more choices, it’s even more important for both buyers and sellers to seek advice from real estate professionals. With the expertise and services that Realtors bring to the table, they help to bridge any differences between buyers and sellers that may arise during the sales process and work to keep the transaction going smoothly for everyone involved."

In December 2005, the national median sales price for existing single-family homes was $209,300, up 10.8 percent from the previous year, according to the National Association of Realtors® (NAR). In California, the statewide median resales price was $548,430 in December; in Maryland, it was $311,914; in New York, it was $279,900; and in North Carolina, the statewide average resales price was $209,810.

Sales of existing condominiums in Florida also decreased last month, with a total of 4,456 condos sold statewide compared to 5,461 in January 2005 for an 18 percent decline, according to FAR. The statewide median sales price for condos rose 12 percent to $221,300 last month; a year ago, it was $197,300. NAR reported the national median existing condo price was $228,100 in December 2005.

This release marks the first time that FAR has reported monthly condo sales in the state's metropolitan statistical areas. In conjunction with the University of Florida Real Estate Research Center, FAR began compiling data on closed condo sales for comparison purposes in 2005.

Last month, interest rates for a 30-year fixed-rate mortgage averaged 6.15 percent, up from the average rate of 5.71 percent in January 2005. FAR’s sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

Among the state’s larger markets, the Orlando Metropolitan Statistical Area (MSA) reported higher existing condo sales last month but slower sales of single-family homes. A total of 439 condos changed hands in January compared to 185 condos a year ago -- a dramatic increase of about 137 percent. The market's median sales price for condos rose 42 percent to $185,100; a year ago, it was $130,400.

Beverly Pindling, president of the Orlando Regional Realtor Association and broker- partner/sales training manager with Orlando Real Estate Professionals, says condos offer an affordable housing choice for many buyers, as well as a more maintenance-free lifestyle.

"The Orlando area offers exciting options for residents," she says. "There are job opportunities here, a new medical school is coming and, compared to many places in the north, the cost of living here is lower. Orlando is a convenient, comfortable place to work, shop, live and obtain an education."

Among the state’s smaller markets, Ocala reported higher sales of existing single-family homes in January, with a total of 428 homes sold compared to 378 homes a year ago for a 13 percent boost. The median sales price rose 39 percent to $166,200; a year ago, it was $119,600.

Wilbur Van Wyck, president of the Ocala/Marion County Association of Realtors and broker-owner of Coldwell Banker Riverland Realty in Dunnellon, says people are drawn to the area's scenic beauty, relaxed lifestyle and friendly community. "People are coming up from South Florida where traffic and living conditions are much more congested," he says. "This area is gorgeous and it's a great place for retirees to live."

© 2006 FLORIDA ASSOCIATION OF REALTORS

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