Florida's existing home sales ease, median price level in August 2006

ORLANDO, Fla., Sept. 25, 2006 -- Mirroring a national pattern, Florida's housing sector continued to show signs of adjustment in August as many markets reported higher inventory levels of homes available for sale and a slowing pace of sales as buyers weighed more options.

A total of 14,736 existing single-family homes sold statewide last month, a decrease of 34 percent from the 22,421 homes sold during the previous August, according to the Florida Association of Realtors® (FAR). Statewide, the existing-home median price remained unchanged at $248,400 last month; a year ago, it was $248,400, according to FAR.

In August 2001, the statewide median sales price was $130,800, representing an increase of about 89.9 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.

Nationally, the median sales price for existing single-family homes was $231,200 in July, up 1.5 percent from a year earlier, according to the National Association of Realtors® (NAR). In California, the statewide median resales price was $567,360 in July; in Massachusetts, it was $361,750; in Maryland, it was $316,697; and in New York, it was $269,700.

Economists with NAR point out that, after five years of outstanding growth, the housing market now is going through a period of adjustment and is more of a balanced market between buyers and sellers. Rising mortgage rates, speculative investors pulling back and many first-time buyers being priced out of some markets during the boom years have contributed to the normalizing housing sector, according to industry analysts, who note that 2006 is expected to be the third strongest sales year on record nationally.

Looking to Florida's existing condominium market, sales of existing condos also decreased in August, with a total of 4,375 condos sold statewide compared to 7,398 in August 2005 for a 41 percent decrease, according to FAR. The statewide median sales price for condos last month was $201,300; a year ago, it was $205,800 for a 2 percent decrease. The national median existing condo price in July 2006 was $225,600.

According to Freddie Mac, the average rate for a 30-year fixed-rate mortgage was 6.52 percent last month, up from 5.82 percent in August 2005. FAR’s sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

Among the state’s larger markets, the Jacksonville metropolitan statistical area (MSA) reported 1,368 existing homes sold last month compared to 1,697 homes sold in August 2005 for a 19 percent decline. The market’s median existing home price rose 4 percent to $202,300; a year ago, it was $194,200. A total of 142 existing condos changed hands in Jacksonville in August for a 45 percent decrease over the 260 condos sold the previous year. The market's median existing condo price was $173,000; a year ago, it was $180,000 for a 4 percent decrease.

"Right now, Jaguar fever is here and providing positive exposure of the Jacksonville area to the nation," 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. "Our housing market benefits from Jacksonville's strong economy that features diversification of industries and service companies."

Of the state’s smaller markets, the Lakeland-Winter Haven MSA reported a total of 465 existing homes sold in August compared to 541 homes sold a year earlier for a 14 percent decline. The area’s median existing home sales price rose 6 percent to $179,000; a year ago, it was $168,100. Twenty-four existing condos sold in the MSA last month for a 25 percent decrease over the 32 condos sold a year ago. The market's median existing condo price was $125,700; a year ago, it was $95,000 for an increase of 32 percent.

"We benefit a lot from our great location between Tampa and Orlando," says Arthur Mattson, treasurer of the Lakeland Association of Realtors and owner of Lakeland Realty. "I don't think there's a better place to live -- our community has a nice, small-town atmosphere, and we have great leadership in local city government that really supports the housing industry. Owning your home is still a great investment -- but buyers and sellers need to understand what’s going on within their local market areas, so it’s even more important now to work with a real estate professional who can guide you through the negotiation process."

© 2006 FLORIDA ASSOCIATION OF REALTORS

Questions, comments or suggestions on this article? Have a news tip? Send a letter to the editor to: Newseditor@floridarealtors.org.