Strong buyer demand, a tight supply of homes available for resale and continued low mortgage rates fueled Florida home sales in February. A total of 17,562 single-family existing homes changed hands statewide last month for a 6 percent increase over the 16,595 homes sold a year ago, according to the Florida Association of Realtors.
The Jacksonville area was among the leaders with an 11 percent increase.
Throughout the state, Realtors report that fierce buyer demand and a shortage of inventory contributed to rising housing prices. The statewide median sales price rose 25 percent to $201,400 last month; a year ago, it was $160,800. In 2000, the statewide median sales price was $107,300, which shows an increase of 87.6 percent over the five-year period, according to FAR records. The median is a typical market price where half the homes sold for more, half for less.
Florida’s existing-home median sales price compares favorably to sales prices in other states. In California, the statewide median resales price was $485,700 in January; in New York, it was $285,000; in Maryland, it was $251,984; in North Carolina, the average resales price was $192,986; and in Illinois, the median price was $179,400. Nationally, the median sales price for existing single-family homes in January was $186,900, up 9.8 percent from January 2004.
Mortgage interest rates that remained near record lows in February sparked buyer interest in markets across the state. Last month, interest rates for a 30-year fixed-rate mortgage averaged 5.63 percent — almost the same level as the 5.64 percent average rate in February 2004. 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 Tampa-St. Petersburg-Clearwater Metropolitan Statistical Area (MSA) reported double-digit increases in resales activity and the median sales price in February. A total of 3,771 homes sold in the area last month compared to 3,223 homes a year ago for a 17 percent increase. The median sales price rose 24 percent to $175,200; a year ago, it was $141,000.
Other large MSAs reporting higher home sales last month compared to a year ago include Jacksonville, where 1,218 homes changed hands for an 11 percent boost; and Orlando, where 2,641 homes sold for a 2 percent increase. The median sales price also rose in those markets: in Jacksonville, 25 percent to $171,800; and in Orlando, 28 percent to $189,700.
As for smaller markets in Florida, February was a good month for the Fort Walton Beach MSA, with a total of 387 homes sold compared to 300 homes a year ago for a 29 percent jump. The area’s median sales price rose 25 percent to $196,700; a year ago, it was $157,700.
Other smaller markets reporting increases in last month’s resales activity include Ocala, where 451 homes changed hands for a 30 percent increase; and Gainesville, where 264 homes sold, also for a 30 percent gain. The median sales price in those markets also rose: in Ocala, 22 percent to $117,100; and in Gainesville, 10 percent to $162,200.