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Marla Martin, Communications Manager
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Florida's Home Sales Show Strong Start: Rise 12 Percent in January

ORLANDO, Fla., Feb. 25, 2004 -- Still low mortgage rates and the steadily improving economy boosted Florida's housing market to a strong start in 2004 with a 12 percent increase in single-family existing home sales in January, according to the Florida Association of Realtors® (FAR). Statewide, sales of single-family existing homes totaled 12,520 last month compared to 11,161 homes sold a year ago. The statewide median sales price rose 15 percent to $168,100; a year ago, it was $146,500.

In January 1999, the statewide median sales price for single-family homes was $102,100, which demonstrates a 64.6 percent gain over the five-year-period, according to FAR records.

Florida’s median sales price compares favorably to the national median sales price for existing single-family homes, which was $173,200 in December 2003, up 6.7 percent from the previous December. In California, the statewide median resales price was $404,520 in December; in North Carolina, the average resales price was $185,034; in Illinois, the median price was $171,800; in Virginia, it was $158,613; and in Ohio, the average resales price was $150,514.

Low mortgage rates continued to spark buyers' interest in markets across the state. Last month, interest rates for a 30-year fixed-rate mortgage averaged 5.71 percent, even lower than the average rate of 5.92 percent reported in January 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 Miami Metropolitan Statistical Area (MSA) reported double-digit gains in home sales and in the median sales price last month. A total of 834 homes changed hands in January compared to 760 homes a year ago for a 10 percent increase. The median sales price rose 24 percent to $246,200; a year ago, it was $197,900.

Influencing the Miami housing market is the current tight supply of homes for sale and a corresponding high demand among buyers, says Jay Chernoff, chairman-elect of the Realtor Association of Greater Miami and The Beaches and district sales manager with The Keyes Company Inc.

“Globally, we're known as a multidimensional community, which attracts residents and business,” he says. “Right now, we have many buyers taking advantage of the still low mortgage rates to buy bigger, more expensive homes.”

Other large MSAs also reporting increased sales last month compared to the previous year: Orlando, where 2,194 homes sold for a 23 percent boost; and West Palm Beach-Boca Raton, where 1,003 homes changed hands for a 13 percent gain. The median sales price of the homes sold in those markets also rose compared to a year ago: in West Palm Beach-Boca Raton, 20 percent to $265,200; and in Orlando, 9 percent to $144,000.

Among the state’s smaller markets, Melbourne-Titusville-Palm Bay reported strong sales in January, with a total of 474 homes sold compared to 358 homes a year ago for a 32 percent jump. The median sales price rose 12 percent to $143,400; a year ago, it was $127,800.

Shirley Solomon, president of the Space Coast Association of Realtors and a broker associate with ERA The Property Place in Titusville, also cites low mortgage rates for stimulating the area's economy through housing sales.

“We offer some of the most affordable homes for the dollar, especially for waterfront property, and that's driving sales,” she says. “Plus, we're seeing a lot of baby boomers coming here from cold northern climates to purchase second homes.”

Other small- to medium-sized MSAs in the state reporting gains in their resales activity last month compared to January 2003 include: Fort Pierce-Port St. Lucie, where 473 homes sold for a 33 percent increase; and Ocala, where 334 homes changed hands for a 21 percent boost. Those same markets also had higher median sales prices last month compared to a year ago: in Fort Pierce-Port St. Lucie, 21 percent to $171,200; and in Ocala, 18 percent to $94,800.

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 January 2004 to January 2003, 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