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Florida’s Home Sales Rise 4 Percent in November

ORLANDO, Fla., Dec. 30, 2003 -- A strong housing sector pumped up Florida's economy in November and also continued to boost the nation's economic recovery: A total of 10,322* existing single-family homes were sold statewide last month for a 4 percent increase over last year’s sales activity of 9,917 homes, according to the Florida Association of Realtors® (FAR).

Last month, the statewide median sales price rose 13 percent to $172,500; a year ago, it was $153,300. In November 1998, the statewide median sales price was $103,600, translating to a gain of 66.5 percent over the five-year period. 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 compares to last month's national median sales price for existing single-family homes, which was $172,400 in October -- an 8.2 percent increase over last year. In California, the statewide median resales price was $381,200 in October; in New York, it was $205,749 for the month; in North Carolina, the average resales price was $187,329; in Illinois, the statewide median price was $172,500; and in Ohio, the average resales price was $146,459.

Interest rates for a 30-year fixed-rate mortgage averaged 5.93 percent in November, even lower than the 6.07 percent rate recorded last year. FAR’s sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

Among the state’s larger metropolitan statistical areas (MSAs), the Miami MSA reported higher figures in both sales and median price last month, with a total of 933 existing single-family homes sold for a 5 percent increase over the 885 homes sold last year. The market’s median sales price increased 20 percent to $233,500; a year ago, it was $194,800.

Tom Dixon, chairman of the Realtor Association of Greater Miami and the Beaches and broker-owner of Thomas J. Dixon Inc., points to historically low mortgage rates as a motivating force for buyer interest.

“Spurring home sales activity in the Miami area are the low interest rates, growth in the population and the belief that purchasing a home is not only a wise emotional decision but a wise financial decision,” he says. “Buying a home, whether it's for the first time or the purchase of a bigger, more expensive home, is considered a smart investment.”

Another large to medium-size market reporting an increase in sales in November was Sarasota-Bradenton, where 891 homes changed hands for a 46 percent gain. The market's median sales price also rose 15 percent to $196,100.

Among the state’s smaller MSAs, Panama City posted strong home sales numbers last month, with a total of 170 homes changing hands compared to 142 homes sold last year for a 20 percent increase. The area’s median sales price rose 7 percent over the same period to reach $136,700; a year ago, it was $127,500.

“I think people are discovering this area and what it has to offer, such as beautiful beaches, affordable homes and a great quality of life,” says Jimmy Wiselogel, president of the Bay County Association of Realtors and a Realtor with Florida Resort Property Group. “While increasing, our prices have stayed reasonable compared to many other areas of Florida, especially coastal areas. Plus, mortgage rates have stayed very low and that encourages buyers.”

Other smaller MSAs in the state also reported higher home resales last month, including: Fort Walton Beach, where 282 homes changed hands for a 13 percent increase; and Melbourne-Titusville-Palm Bay, where 508 homes sold for a 10 percent boost. The median sales price in those markets also rose over the same period: in Melbourne-Titusville-Palm Bay, 16 percent to $140,000; and in Fort Walton Beach, 14 percent to $152,400.

* Since sales data is missing from the Orlando MSA and Tampa area, which accounts for a large portion of the statewide sales data, FAR will send out a revised November 2003 sales chart when the technical difficulties are resolved and the figures become available.

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 August 2003 to August 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 90,000 members in 70 boards/associations.

© 2003 FLORIDA ASSOCIATION OF REALTORS