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Florida’s Existing Home Sales Up 14 Percent, Median Sales Price Rises 12 Percent in December

ORLANDO, Fla., Jan. 26, 2003 -- A vibrant home resales market, more jobs and a positive consumer spending report demonstrated increased momentum in Florida's economic recovery in December: A total of 14,934 existing single-family homes sold statewide last month compared to 13,071 last year for a 14 percent increase, according to the Florida Association of Realtors (FAR). The statewide median sales price rose 12 percent to reach $174,100; a year ago it was $155,900.

In December 1998, the statewide median sales price was $104,700, translating to a 66.2 percent increase over the five-year period, according to FAR records. The median is the midpoint, which is a typical market price where half of the homes sold for more and half for less.

Florida’s median sales price mirrors November's national median sales price for existing single-family homes of $170,900, up 5.9 percent from last year. In California, the statewide median resales price was $386,760 in November; in New York, it was $210,000; in North Carolina, the average resales price was $183,215; in Illinois, the median price was $167,900; and in Ohio, the average was $143,925.

Across Florida, Realtors cited continued low interest rates as a strong incentive for buyers to enter the market last month. The rate for a 30-year fixed-rate mortgage averaged 5.88 percent in December, a dramatic drop from the already low 6.05 percent rate last year. FAR’s sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

Among Florida’s larger cities, the Orlando metropolitan statistical area (MSA) posted a double-digit increase in sales in December. Orlando reported a total of 2,235 homes changing hands compared to 1,830 homes last year for a 22 percent boost. The area's median sales price rose 8 percent to $150,900; a year ago, it was $140,300.

Greg Rokeh, 2004 president of the Orlando Regional Realtor Association and REO property specialist with Watson Realty Corp. in Longwood, pointed to low mortgage rates and a strong local economy as factors driving the area's housing market. “We ended the year essentially where we started in terms of interest rates,” he says. “And Orlando is an attractive community offering the kind of quality of life that appeals to homebuyers. It's a great place to live and to work.”

Another large Florida MSA reporting higher sales last month compared to a year ago was West Palm Beach-Boca Raton, where 1,439 homes sold for a 22 percent gain. The median sales price rose 21 percent to $259,800; last year, it was $215,100.

As for the state’s smaller markets, the Fort Walton Beach MSA reported a phenomenal 53 percent jump in the number of homes sold in December, with a total of 374 homes changing hands compared to 245 homes last year. The market's median sales price rose 8 percent to $153,000; a year ago, it was $141,600.

Roland Guidry, 2004 president of the Emerald Coast Association of Realtors and a Realtor with the Pat Guidry Agency in Destin, says that many new buyers from across the Southeast are seeking a community that offers a more leisurely pace and a vacation home within driving distance to their primary residences, which brings them to the Fort Walton Beach/Destin area.

“The continued low interest rates, the numbers of baby boomers in their prime earning years, and the aftermath of the Sept. 11 tragedy have had an impact on the area in terms of second homes,” he says. “People are buying second homes here for the appreciation value.”

Other smaller to medium MSAs in the state posting gains last month compared to a year ago include: Fort Pierce-Port St. Lucie, where 644 homes sold for a 42 percent increase; Naples, where 387 homes sold for a 31 percent gain; and Ocala where 481 homes changed hands for a 25 percent increase. The median sales price also rose in those markets: in Naples, 33 percent to $349,100; in Fort Pierce-Port St. Lucie, 20 percent to $166,200; and in Ocala, 7 percent to $95,400.


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 December 2003 to December 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