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Florida's Home Sales Sizzle; Rise 19 Percent in August

ORLANDO, Fla., Sept. 25, 2003 -- Showing no signs of cooling off, Florida’s housing market caught fire in August, with a 19 percent increase in resales activity and a 13 percent rise in the statewide median sales price, according to the Florida Association of Realtors® (FAR).

Statewide, a total of 19,787 single-family existing homes sold last month compared to 16,595 a year ago, for an increase of 19 percent. The statewide median sales price rose 13 percent to $163,600; a year ago, it was $144,200. In 1998, the statewide median sales price for single-family existing homes was $107,100, which translates to an increase of about 52.7 percent 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 $182,100 in July, up 12.1 percent from the previous July when it was $162,400. In California, the statewide median resales price was $383,320 in July; in North Carolina, the average resales price was $183,624; in Illinois, the median price was $181,900; in Virginia, the median price was $177,869; and in Ohio, the average statewide resales price was $156,600.

Interest rates remained at historically low levels last month, with the 30-year fixed-rate mortgage averaging 6.26 percent; a year ago, it averaged 6.29 percent. FAR’s sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written. With mortgage rates so low, many buyers have been acting quickly to snap up homes, resulting in tight inventory and rapid turnarounds in many markets, according to Realtors across Florida.

A number of the state’s larger metropolitan statistical areas (MSAs) reported robust home sales last month. The West Palm Beach-Boca Raton MSA had a 16 percent increase in resales activity last month, with 1,532 homes changing hands compared to 1,320 homes last year. The market's median sales price soared 27 percent to $251,900; a year ago, it was $199,000.

The West Palm Beach area attracts a lot of residents because of its beautiful beaches and abundant leisure activities, says Andrew Barbar, president-elect of the Realtors Association of the Palm Beaches and president of Barbar Real Estate Company in Boca Raton. “But the efforts that the business community have made to encourage the expansion and diversification of industry are key to the area's growth,” he says. “Over the past five to 10 years, we've had a lot of industries move here from Miami-Dade and Broward counties, as well as relocate from other states.”

Some of the other large Florida MSAs reporting higher sales last month compared to August 2002 include: Tampa-St. Petersburg-Clearwater, where 3,137 homes sold for an 24 percent increase; and Orlando, where 2,980 homes changed hands for an 18 percent gain. The median sales price in those markets also rose: in Orlando, 17 percent to $152,800; and in Tampa-St. Petersburg-Clearwater, 9 percent to $149,000.

Among the state’s smaller MSAs, the Melbourne-Titusville-Palm Bay market reported a phenomenal 72 percent jump in home sales last month, with 940 homes sold compared to 546 homes a year ago. The area's median sales price rose 16 percent to $137,100; a year ago, it was $118,200.

Peter DiLavore, president of the Melbourne Area Association of Realtors and broker-owner of DiLavore Properties in Melbourne, points to the low interest rates and tight inventory as factors in the area’s incredible home sales. “Housing affordability is one of the advantages that this area offers,” he says. “When people move to Melbourne from other states or even other parts of Florida, they often see they can get more home for their money here in comparison, especially for waterfront property.”

Other smaller MSAs reporting strong resales activity last month include: Gainesville, where 325 homes changed hands for a 28 percent increase; and Lakeland-Winter Haven, where 524 homes sold for a 26 percent gain. The median sales price in those markets also rose: in Lakeland-Winter Haven, 9 percent to $101,900; and in Gainesville, 6 percent to $148,500.

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