Continuing low mortgage rates and a tight inventory of existing single-family homes for sale in Florida sparked buyer demand in fourth quarter 2004.
As a result, the statewide median sales price reached $193,200 - a 22 percent increase over the median price of $158,900 in fourth quarter 2003, according to the Florida Association of Realtors. For fourth quarter 1999, the statewide median sales price was $106,700, which marks an increase of 81 percent over the five-year period, FAR records show.
With many regions still shaking off the after effects of four hurricanes making landfall in Florida in the summer and fall, a statewide total of 54,633 existing, single-family homes sold during the three-month period, down 2 percent from the 55,748 homes sold during the same quarter in 2003.
Interest rates stayed under 6 percent for most of the quarter, which prompted many renters to enter the housing market for the first time and other homeowners to purchase larger residences.
According to Freddie Mac, a 30-year, fixed-rate mortgage averaged 5.73 percent for fourth quarter 2004, down from 5.89 percent in the third quarter; in fourth quarter 2003, the rate averaged 5.92 percent. FAR’s sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.
As one of the larger Metropolitan Statistical Areas (MSAs) in the state, Tampa-St. Petersburg-Clearwater reported the biggest number of homes sold for the quarter, with a total of 11,215 homes changing hands compared to 10,649 homes sold during the final quarter of 2004 for a 5 percent increase. The median sales price rose 18 percent to $168,500; it was $142,300 in fourth quarter 2003.
Development and employment opportunities are helping to spark home sales in the area, says George Bodmer, president of the Greater Tampa Association of Realtors and general manager of Bayside Realty Group Inc. in Brandon. He says, “More and more people are coming to the Tampa Bay area, which is driving up demand. And buyers want to take advantage of the still-low mortgage rates while they can.”
The Jacksonville MSA also had strong resales activity in the fourth quarter compared to the previous year, with 3,641 homes sold for an 8 percent gain. The market’s median sales price was $162,800 for the quarter, a 15 percent gain over final quarter 2003.
Among the state’s smaller markets, the Naples MSA posted a 16 percent increase in existing home sales for the final quarter of last year. A total of 1,046 homes changed hands compared to 901 homes sold during fourth quarter 2003. The median sales price rose 17 percent to $360,700; it was $307,400 in the final quarter of 2003.
Michele Harrison, president of the Naples Area Board of Realtors and Association of Real Estate Professionals says tight inventory and high demand are factors influencing the area’s median price for resales. “The Naples area is growing fast and attracts a number of affluent buyers,” she says. “Also, we were blessed not to have been hit by the hurricanes this past summer and fall.” Harrison also is director of sales for Elias Brothers Communities in Naples.
Other smaller markets reporting double-digit gains in resale activity for the final quarter of 2004 include Pensacola, where 1,551 homes sold for a 20 percent gain; Tallahassee, where 1,058 homes sold for a 20 percent increase; and Melbourne-Titusville-Palm Bay, where 1,782 homes changed hands for a 18 percent gain. The median sales price in those markets also rose compared to the previous year: in Melbourne-Titusville-Palm Bay, 32 percent to $180,500; in Pensacola, 20 percent to $141,000; and in Tallahassee, 12 percent to $156,300.