With mortgage rates still ticking upwards, Florida’s housing sector in May continued to adjust to changing market conditions, including a greater inventory of homes available for sale in many areas.
Statewide, the existing-home median price rose 11 percent to $256,400 in May; a year ago, it was $232,000, according to the Florida Association of Realtors. A total of 18,680 existing single-family homes sold statewide last month, a decrease of 24 percent from the 24,523 homes sold during the previous May, according to FAR.
In 2001, the statewide median sales price was $125,200, which is an increase of about 104.7 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 sold for less.
The Jacksonville metropolitan statistical area reported 1,732 existing homes changed hands in May compared to 1,671 homes sold in May 2005 for a 4 percent gain. The market’s median existing home price rose 15 percent to $208,700; a year ago, it was $181,700.
A total of 230 existing condos sold in Jacksonville in May for a 35 percent increase over the 170 condos sold the previous year. The market’s median existing condo price rose 3 percent to $170,900; a year ago, it was $166,700.
“The range of housing options and prices available in the Jacksonville area is one of the attractions here,” says Kay Seitzinger, president of the Northeast Florida Association of Realtors and assistant manager with the South Beach office of Watson Realty Corp. in Jacksonville Beach. “The economy continues to be very strong, there are new businesses coming to the area and our jobs outlook is solid now and for the future. The market is adjusting and rising inventory levels offer buyers more opportunities.
“Nationally, the median sales price for existing single-family homes was $222,700 in April, up 4.3 percent from a year earlier, according to the National Association of Realtors.
Home sales across the nation are settling into a slower pace, which is good for the long-term health of the sector, according to NAR housing industry analysts. Still, NAR expects 2006 to be the third strongest sales year on record. Analysts note that the adjusting housing market will continue to provide a strong underlying base to the economy, while slower appreciation will help to preserve long-term affordability.
Looking to Florida’s existing condominium market, sales of existing condos also decreased in May, with a total of 5,725 condos sold statewide compared to 8,337 in May 2005 for a 31 percent decline, according to FAR. The statewide median sales price for condos remained relatively flat last month at $222,000; a year ago, it was $222,100. The national median existing condo price in April 2006 also was $222,000.
According to Freddie Mac, the average rate for a 30-year fixed-rate mortgage was 6.60 percent last month, up from 5.72 percent in May 2005. FAR’s sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.
Editor’s Note: Sales numbers represent totals of Realtors’ closed transactions from local Realtor boards/associations within the MSAs.
The information is based on a survey of MLS sales levels from Florida’s Realtors boards/associations. MSAs are defined by the 2000 census. Source: Florida Association of Realtors and the University of Florida Real Estate Research Center.
