Florida existing home sales in October shot up 13 percent from a year ago as the median price fell, according to figures released this week by Florida Realtors.
Buoyed by lower interest rates and improved consumer confidence, sales increased in 17 of 19 metropolitan areas across the state, the association’s chief economist reported.
Median prices were off about 4 percent statewide, falling to $131,200 from $136,600 a year ago.
Florida condominium sales were also strong for the month, with sales increasing 12 percent and the median price climbing 7 percent from October 2010 figures.
“These numbers, combined with reports from Realtors throughout the state, indicate that we’re seeing strong interest in purchasing Florida real estate from smart investors who are taking advantage of the current favorable market conditions,” said John Tuccillo, lead economist for the Florida Realtors.
“These folks tend to have a long-term outlook and plan to hold onto their property purchases for a while,” he said.
The Florida Realtors reported a 12 percent increase in closed single-family existing home sales in the Jacksonville area in October from October 2010, from 841 to 943. The median sales price dropped 12 percent from $141,000 to $124,100.
Existing condominium sales in the Jacksonville area dropped 8 percent to 140 from 152 and the median condo price fell 4 percent to $63,500 from $66,400. The condo data did not include information from the St. Johns County Realtors.
Florida’s performance mirrored national trends, which saw sales increase 13.5 percent for the month while median prices fell 4.7 percent from October 2010, according to the National Association of Realtors.
One encouraging sign was that the percentage of distressed homes sold fell to 28 percent last month, a 2 percent drop from a year earlier.
Sales in the South increased 2.1 percent from September and were 14.1 percent above a year ago, the national association reported. The median price in the South was $145,700, down 1.6 percent from October 2010.
Despite the improved sales, tighter credit requirements are holding back many buyers, the association reported. The number of canceled contracts in October was more than four times higher that of a year ago, with one in three contracts being canceled during the month.
“Home sales have been stuck in a narrow range despite several improving factors that generally lead to higher home sales, such as job creation, rising rents and high affordability conditions,” said association chief economist Lawrence Yun in a statement. “Many people who are attempting to buy homes are thwarted in the process.”
Home sales in Miami jumped 41 percent fueled in part by a 13 percent decrease in median price, which fell to $174,600. West Palm Beach showed sales gains of 27 percent. Other strong markets were Gainesville and Sarasota/Bradenton, which each experienced year-to-year sales increases of 20 percent.
There were a couple of drops.
Home sales were off 10 percent in Tallahassee while median prices slipped 1 percent to $160,000. Sales in the Fort Myers/Cape Coral area fell 6 percent, while the median price jumped 15 percent in a region that has taken a pounding because of overbuilding.
Freddie Mac reports that the interest rate for a 30-year fixed-rate mortgage averaged 4.07 percent in October, down from the 4.23 percent average during the same month a year earlier.
“The latest unemployment figures indicate that Florida’s jobs outlook is improving, mortgage rates remain at historical lows and buyers are able to consider a variety of housing options at affordable prices in communities across the state,” said 2011 Florida Realtors President Patricia Fitzgerald.