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Florida Home Resales Rise 24 Percent for Third Quarter 2003

ORLANDO, Fla., Nov. 13, 2003 -- Historically low mortgage rates fueled sales of existing single-family homes in Florida in third quarter 2003, with statewide resales activity from July through September demonstrating a 24 percent increase, according to the Florida Association of Realtors® (FAR). During the three-month period, a total of 59,446 homes changed hands compared to 48,080 homes a year ago. Realtors across Florida reported that buyers' avid demand for homes resulted in tight inventories in many markets, particularly for residences priced under $200,000.

The statewide median sales price in third quarter 2003 rose 13 percent to $163,700; a year ago, it was $144,600. For third quarter 1998, the statewide median sales price of existing single-family homes was $104,500, translating to a 56.6 percent increase over the five-year period. The median is a typical market price where half of the units sold for more and half sold for less.

Interest rates for a 30-year, fixed-rate mortgage averaged 6.01 percent for the three-month period, a notable dip from the 6.29 percent reported during the same quarter in 2002. 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 Orlando metropolitan statistical area (MSA) reported double-digit gains in sales volume and median price for the quarter. A total of 8,994 existing homes sold in the Orlando market compared to 7,292 homes last year for a 23 percent gain. Over the same period, the market’s median sales price rose 14 percent to $150,100; it was $132,100 a year ago.

“People today are putting their money in their homes as an investment,” says Dean Asher, president of the Orlando Regional Realtor Association and vice president of Don Asher and Associates in Orlando. “They see real estate appreciating in value and often decide to buy a more expensive home or a second home as a personal investment.”

Other larger MSAs reporting strong resales activity for third quarter 2003 include: Tampa-St. Petersburg-Clearwater, where 9,488 homes changed hands for a 33 percent jump; and West Palm Beach-Boca Raton, where 4,371 homes sold for an 18 percent increase. The median sales price in those markets also rose: in West Palm Beach-Boca Raton, 24 percent to $249,300; and in Tampa-St. Petersburg-Clearwater, 9 percent to $149,600.

As for smaller Florida markets, the Tallahassee MSA had a total of 1,132 homes sold during the quarter compared to 841 a year ago for a 35 percent boost. The median sales price rose 2 percent to $141,900; a year ago, it was $139,000.

Kevin Hattaway, president of the Tallahassee Board of Realtors and a sales associate with Linda Dix Realty, says that residents are attracted to the area's strong university system, cultural arts and sense of community. “As the capital city, Tallahassee offers a more significant cultural base than most other cities of this size,” he says. "We've found that more and more people are choosing to raise families and to retire here, because they really enjoyed being here while in college.”

Several other smaller MSAs had double-digit home sales in the third quarter, including: Melbourne-Titusville-Palm Bay, where 2,383 homes sold for a 45 percent gain; and Panama City, where 710 homes changed hands for a 35 percent increase. The median sales price also rose: in Melbourne-Titusville-Palm Bay, 15 percent to $140,000; and in Panama City, 15 percent to $140,400.


A chart showing statistics for Florida and its 20 MSAs is available by clicking here. The chart compares the volume of existing, single-family home sales and median sales prices in third quarter 2002 to third quarter 2001, based on Realtor transactions.

The Florida Association of Realtors, the voice for real estate in Florida, provides programs, services, continuing education, research and legislative representation to its 90,000 members in 70 boards/associations.

© 2003 FLORIDA ASSOCIATION OF REALTORS