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Florida Home Sales Increase 12 Percent; Median Price Rises 11 Percent in 4th Quarter 2003

ORLANDO, Fla., Feb. 12, 2004 -- In the fourth quarter of 2003, a booming housing market, combined with rising consumer spending, exports and business purchases boosted the economy in Florida and nationwide. During the three-month period, a total of 45,768 existing, single-family homes sold statewide for a 12 percent increase over the 2002 final quarter figure of 40,901 homes, according to the Florida Association of Realtors (FAR).

The statewide median sales price rose 11 percent to $167,700; a year ago, it was $150,500. For fourth quarter 1998, the statewide median sales price was $103,300, which marks a 62.3 percent increase over the five-year period, FAR records show. Nationally, the final quarter 2003 median sales price for existing homes was $171,600, according to the National Association of Realtors (NAR).

Interest rates stayed under 6 percent for most of the quarter, which prompted many renters to enter the housing market for the first time and other homeowners to purchase larger residences. According to Freddie Mac, a 30-year, fixed-rate mortgage averaged 5.92 percent for fourth quarter 2003, down from 6.01 percent in the third quarter; in fourth quarter 2002, the rate averaged 6.08 percent. The fourth-quarter average interest rate was the third lowest since the Freddie Mac series began in 1971; the lowest averages were in the second and first quarters of 2003. FAR’s sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

As one of the larger Metropolitan Statistical Areas (MSAs) in the state, Sarasota-Bradenton reported a double-digit increase in both number of homes sold and median sales price for fourth quarter 2003. A total of 2,957 homes changed hands compared to 2,127 homes sold during the final quarter of 2002 for a 39 percent increase. The median sales price rose 22 percent to $204,100; it was $167,600 in fourth quarter 2002.

New construction and commercial activity are helping to spark home sales in the area, says Nick Figlow, president of the Sarasota Association of Realtors. Figlow, who is vice president and general manager for RE/MAX Gulfstream Realty, says, “For example, an international investor (from Ireland) has just purchased The Quay, with plans to revitalize the commercial area and put millions of dollars into it. We're also attracting more and more international buyers, drawn by the area's well-deserved reputation as a cultural mecca.”

West Palm Beach-Boca Raton, another large MSA, also reported strong resales activity in the fourth quarter compared to the previous year, with 3,897 homes sold for an 11 percent gain. The market's median sales price was $253,000 for the quarter, a 19 percent gain over final quarter 2002.

Among the state’s smaller markets, the Fort Pierce-Port St. Lucie MSA posted a 24 percent increase in existing home sales for the final quarter of last year. A total of 1,630 homes changed hands compared to 1,314 homes sold during fourth quarter 2002. The median sales price rose 23 percent to $167,300; it was $135,900 in the final quarter of 2002.

Carmen Pappa, president of the St. Lucie Association of Realtors and a broker-associate with Coldwell Banker Residential Real Estate, cites low interest rates, location and lifestyle as factors in the area's bustling housing market. “We're getting a tremendous influx of people living in the south end of Florida, who are tired of congestion,” she says. “And we still have a lot of land available for development in St. Lucie County, which adds to the value.”

Other smaller markets reporting double-digit gains in resale activity for the final quarter of 2003 include: Fort Walton Beach, where 1,002 homes sold for a 28 percent gain; Melbourne-Titusville-Palm Bay, where 1,764 homes changed hands for a 22 percent increase; and Panama City, where 563 homes sold for a 14 percent gain. The median sales price in those markets also rose compared to the previous year: in Panama City, 16 percent to $148,900; in Melbourne-Titusville-Palm Bay, 11 percent to $134,000; and in Fort Walton Beach, 10 percent to $153,800.

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 fourth quarter 2003 to fourth quarter 2002, 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 100,000 members in 70 boards/associations.

© 2004 FLORIDA ASSOCIATION OF REALTORS