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Florida's Home Resales' Median Price Up 18 Percent for Third Quarter 2004

ORLANDO, Fla., Nov. 15, 2004 -- Florida's housing market demonstrated its continued strength in third quarter 2004, despite the impact of having four hurricanes making landfall in the Sunshine State in August and September. Statewide, sales of existing single-family homes totaled 59,676 for the three-month period, a drop of only 1 percent compared to the 60,331 homes sold in third quarter 2003, according to the Florida Association of Realtors® (FAR). 

The statewide median sales price for third quarter 2004 rose 18 percent to $190,600; a year ago, it was $162,100. For third quarter 1999, the statewide median sales price of existing single-family homes was $112,000, which represents an increase of about 70.2 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. 

Realtors across the state are reporting that buyers' interest remains high, even in those areas hit hardest by the hurricanes, and sellers do not appear to be looking to lower home prices in exchange for a quick sale. 

Interest rates for a 30-year, fixed-rate mortgage averaged 5.89 percent for the three-month period, even lower than the 6.01 percent reported during the same quarter in 2003. 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 double-digit increases in sales volume and median price for the quarter. A total of 4,332 existing homes sold in the Jacksonville market compared to 3,757 homes last year for a 15 percent gain. Over the same period, the market’s median sales price rose 10 percent to $164,500; it was $149,100 a year ago. 

“The underlying market trend shows that the housing market in Florida is still strong, which is supported by the sales data for third quarter,” says Andre Boutte, president of the Northeast Florida Association of Realtors and director of training for Watson Realty Corp. “The Jacksonville area will continue to see the demand for housing grow: there are new subdivisions being built, new condo developments and new job opportunities.” 

Other larger MSAs reporting higher resales activity for third quarter 2004 include: Tampa-St. Petersburg-Clearwater, where 12,531 homes changed hands for a 7 percent gain; and Orlando, where 9,236 homes sold for a 3 percent increase. The median sales price in those markets also rose: in Tampa-St. Petersburg-Clearwater, 17 percent to $167,400; and in Orlando, 15 percent to $172,900. 

As for smaller Florida markets, the Tallahassee MSA had a total of 1,163 homes sold during the quarter compared to 1,132 a year ago for a 3 percent increase. The median sales price rose 10 percent to $155,600; a year ago, it was $141,900. 

Penny Herman, president of the Tallahassee Board of Realtors and broker-owner of Penny Herman Realty, says that the area's strong university system, cultural arts activities and sense of community are attracting buyers. “We're seeing a lot of people choosing to retire here,” she says. “Wakulla (county) and the coastal areas continue to experience high sales.” 

Several other smaller MSAs reported strong home sales for the third quarter, including: Fort Walton Beach, where 1,399 homes sold for a 15 percent gain; and Ocala, where 1,512 homes changed hands for an 8 percent increase. The median sales price also rose: in Fort Walton Beach, 27 percent to $199,100; and in Ocala, 19 percent to $115,000. 

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 2004 to third quarter 2003, based on Realtor transactions.

The Florida Association of Realtors (FAR), the voice for real estate in Florida, provides programs, services, continuing education, research and legislative representation to its more than 120,000 members in 70 boards/associations.

© 2004 FLORIDA ASSOCIATION OF REALTORS