Low mortgage rates and a tight supply of homes pumped up sales of existing single-family homes in Florida 29 percent in April, for a total of 23,375 homes sold statewide compared to 18,094 homes a year ago, according to the Florida Association of Realtors.
Statewide, the median cost of a resale home in Florida rose 16 percent to $173,900; it was $149,300 in April 2003. The median is a typical market price where half the homes sold for more, half sold for less. In 1999, the statewide median sales price was $102,200, which translates to a dramatic 70.1 percent increase over the five-year-period, according to FAR records.
North Florida rode the wave. The area was up 25 percent in Homes sold with a 15 percent increase in the median price.
Florida’s median sales price compares favorably to the national median sales price for existing single-family homes, which was $174,100 in March 2004, up 7.4 percent from the previous March when the median price was $162,100. In California, the statewide median resales price was $428,280 in March; in Maryland, it was $210,583; in North Carolina, the average resales price was $182,587; in Illinois, the median price was $170,000; and in Virginia, it was $163,858.
Across the state, Realtors cite continued low mortgage rates for encouraging people to become homeowners. In many markets, Realtors also report that the supply of existing homes for sale remains low, often resulting in multiple offers on properties.
The interest rate for a 30-year fixed-rate mortgage in April averaged 5.83 percent compared to 5.81 percent during the same month a year ago. FAR’s sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.
For the state’s larger markets, the Jacksonville metropolitan statistical area reported strong home sales last month, with a total of 1,449 homes changing hands for a 25 percent gain over the 1,161 homes sold in April 2003. The market’s median home price rose 15 percent to $154,700; a year ago, it was $134,300.
Andre Boutte, president of the Northeast Florida Association of Realtors and vice president-director of training for Watson Realty Corp., agrees that low rates are attracting buyers and fueling the area’s strong resales activity.
“With rates down as low as they still are, more people can afford to purchase a home and that means people are ready to buy now,” he says. “Jacksonville is growing — we have a lot of businesses coming to the area. And with the Super Bowl coming here next year, we probably have some investors looking to buy homes and rent them out for that event.”
Other larger Florida MSAs posting double-digit increases in resales activity last month compared to a year ago include: Tampa-Clearwater-St. Petersburg, where 4,308 homes sold for a 34 percent gain; and Orlando, where 3,454 homes changed hands for a 32 percent increase. The median sales price in those markets also rose over the same period: in Orlando, 13 percent to $154,200; and in Tampa-Clearwater-St. Petersburg, 12 percent to $148,800.
Of the state’s smaller markets, the Fort Walton Beach MSA reported a 55 percent boost in home sales in April, with a total of 482 homes changing hands compared to 310 homes sold last year. The area’s median sales price rose 32 percent to $185,100; a year ago, it was $140,000.
Roland Guidry, president of the Emerald Coast Association of Realtors and a broker with the Pat Guidry Agency, points to favorable mortgage rates and a busy second home market as two factors driving sales in the Fort Walton Beach/Destin area. “We currently have a feeding frenzy on second homes,” he says. “Baby boomers can afford to buy second homes now, especially with the current mortgage rates. Another advantage we have to offer is that the Gulf Coast is within driving distance of so many communities, including Houston, Atlanta and Birmingham, Ala., to name just a few.”
Other smaller MSAs reporting strong gains in home sales last month include: Pensacola, where 612 homes sold for a 56 percent jump; and Fort Pierce-Port St. Lucie, where 647 homes sold for a 45 percent increase. The median sales price in those markets also rose: in Fort Pierce-Port St. Lucie, 25 percent to $184,400; and in Pensacola, 13 percent to $126,200.
Florida Sales Report - June 2004
Single-Family, Existing Homes
(1) Data for Sanibel and Captiva was not available.
(2) Data for Hernando County was not available.
This information is based on a survey of MLS sales levels from Florida’s Realtor boards/associations. MSAs are defined by the 2000 Census. Source: Florida Association of Realtors and the University of Florida Real Estate Research Center.
(c) 2004 FLORIDA ASSOCIATION OF REALTORS