Florida’s existing home sales remained soft in April though the inventory of homes continued to ease in many markets across the state, according to the Florida Association of Realtors. Statewide, sales of single-family existing homes totaled 12,016 last month compared to 16,283 homes sold in April 2006 for a 26 percent decrease.
Florida’s median sales price for existing single-family homes in April was $237,800; a year ago, it was $245,900 for a 3 percent decrease. The median is the midpoint; half the homes sold for more, half for less.
The North Florida market reflected the overall state numbers. Home sales declined 13 percent over April 2006 with prices up 5 percent, and condo sales dropped 35 percent with prices up 4 percent.
In April 2002, the statewide median sales price for single-family homes was $133,700, for an increase of 77.9 percent over the five-year-period, according to FAR records.
Housing industry analysts anticipate that a decline in subprime mortgage loans, coupled with stricter lending standards, could impact housing activity in the coming months. According to NAR Senior Economist Lawrence Yun, one benefit for the market is the disappearance of speculative behavior, which contributed to abnormal price growth.
“Homebuyers today are purchasing for the long-term, generally with a realistic expectation of modest gains over time,” Yun said in NAR’s latest market outlook. “It’s good that we’re getting beyond the tendency of some buyers to view housing as a temporary asset to accumulate short-term wealth, which is not to be expected in a normal market.” NAR predicts that existing home sales will increase gradually in the second half of 2007, with prices recovering a bit later.
Sales of existing condominiums in Florida also decreased last month, with a total of 4,321 condos sold statewide compared to 5,344 in April 2006 for a 19 percent decline, according to FAR. The statewide median sales price for condos last month was $215,500, up 3 percent from April 2006’s condo median price of $210,000. NAR reported the national median existing condo price was $228,200 in March 2007.
Last month, interest rates for a 30-year fixed-rate mortgage averaged 6.18 percent, according to Freddie Mac, a significant drop from the average rate of 6.51 percent in April 2006. FAR’s sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.
