Florida Realtors reported positive signs in their local housing markets during the first quarter of 2008, noting a slower rate of expansion for inventory levels and an increase in pending home sales (based on contracts signed but not closed) in some areas.
Sales of existing condominiums improved from fourth quarter 2007 to first quarter 2008, according to the latest housing statistics from the Florida Association of Realtors (FAR). A total of 8,581 existing condos sold statewide in the first quarter of 2008, an 8.3 percent increase over the fourth quarter of 2007 when 7,923 units were sold.
In Jacksonville, home sales fell 36 percent in the first quarter of 2008 compared to the first quarter of 2007 when 3,294 homes were sold.
“If we look at what is happening month-over-month for 2008, it appears that the bottom (of the housing slowdown) may be here,” said 2008 FAR President Chuck Bonfiglio. “We are now seeing more activity, more sales and even prices starting to rise in some markets. So I believe that there are some really good signs in many areas of our state.”
Looking at a year-to-year quarterly comparison, a total of 25,443 single-family existing homes changed hands during the three-month period, a decrease of 26 percent compared to 34,298 homes sold during the same time a year earlier, according to FAR records. The state-wide existing-home median sales price was $202,300 in the first quarter; a year ago, it was $238,900 for a decrease of 15 percent.
To gain insight into current trends in Florida’s real estate industry, the University of Florida’s Bergstrom Center for Real Estate Studies conducts a quarterly survey of industry executives, market research economists, real estate scholars and other experts.
The first quarter 2008 survey, released in March, found the outlook for Florida remains stable because of the state’s fundamentals of good climate and in-migration.
Continuing low mortgage rates remain another positive influence on the housing sector. According to Freddie Mac, the national commitment rate for a 30-year conventional fixed-rate mortgage average 5.88 percent in the first quarter of 2008; one year earlier, it averaged 6.22 percent.
The latest industry outlook from the National Association of Realtors (NAR) predicts that home sales activity will remain flat for the next couple months before improving over the summer. The extent of expected recovery hinges on better access to affordable loans, according to NAR Chief Economist Lawrence Yun.
“Things are beginning to improve, but the availability of affordable mortgages is uneven around the country and sometimes within metropolitan areas,” he said. “As anticipated, we continue to look for a soft first half of the year, for both housing and the economy, before notable improvements in the second half.”
