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Jeff Zipper, Vice President of Communications
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Marla Martin, Communications Manager
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Florida's January Home Sales Show Strong Start: Up 10 Percent, Median Price Breaks $200,000

ORLANDO, Fla., Feb. 25, 2004 -- Favorable mortgage rates, a growing economy and improving job market boosted Florida's housing market to a strong start in 2005 with a 10 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 15,567 last month compared to 14,204 homes sold a year ago. 

Realtors from across the state reported that high buyer demand contributed to a tight inventory of homes available for sale in most markets and impacted median sales price. The statewide median sales price last month rose 24 percent to $204,900; a year ago, it was $164,900. In January 2000, the statewide median sales price for single-family homes was $109,200, resulting in an increase of 87.6 percent over the five-year-period, according to FAR records. 

In December, the national median sales price was $188,900, up 8.1 percent from the previous year when the median price was $174,800. In California, the statewide median resales price was $474,480 in December; in Maryland, it was $258,216; in North Carolina, the average resales price was $193,817; in Illinois, the median price was $184,000; and in Ohio, the average resales price was $150,739. 

Low mortgage rates continued to attract buyers across the state. Last month, interest rates for a 30-year fixed-rate mortgage averaged 5.71 percent -- exactly the same rate averaged in January 2004. 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 Fort Myers-Cape Coral Metropolitan Statistical Area (MSA) reported double-digit gains in home sales and in the median sales price last month. A total of 829 homes changed hands in January compared to 645 homes a year ago for a 29 percent increase. The median sales price rose 29 percent to $219,800; a year ago, it was $170,200. 

Growth and demand are fueling the area's resales activity, says Gary Atkinson, president of the Realtor Association of Greater Fort Myers & the Beach and a Realtor with RE/MAX Realty Group Inc. in Fort Myers. 

“We have a shortage of available inventory,” he says. “The low mortgage rates are driving demand. We have baby boomers moving to the Fort Myers area looking for retirement properties, but we also have people with families, who live and work here fulltime.” 

Other large MSAs also reporting increased sales last month compared to the previous year: Jacksonville, where 1,022 homes sold for a 16 percent gain; and Tampa-St. Petersburg-Clearwater, where 2,995 homes changed hands for a 16 percent increase. The median sales price of homes sold in those markets also rose compared to a year ago: in Jacksonville, 23 percent to $169,200; and in Tampa-St. Petersburg-Clearwater, 20 percent to $172,800. 

Among the state’s smaller markets, Ocala reported strong sales in January, with a total of 378 homes sold compared to 334 homes a year ago for a 13 percent boost. The median sales price rose 26 percent to $119,600; a year ago, it was $94,800. 

Mary Modrovsky, president of the Ocala/Marion County Association of Realtors and president of Fred Tyrrell Realty Inc. in Ocala, says people are drawn to the area's natural beauty and more relaxed pace of life.

 “We've been discovered … it's a beautiful area, with our horse farms, the rolling hills, our springs,” she says. “People are coming up from South Florida where traffic and living conditions are more congested. They come here and want more acreage. We're also seeing a lot of Baby Boomers retiring and coming here to live, and a lot of investors now are interested in buying homes in this market.” 

Other smaller MSAs in the state reporting gains in their resales activity last month compared to January 2004 include: Gainesville, where 289 homes sold for a phenomenal increase of 99 percent; and Tallahassee, where 295 homes changed hands for a 43 percent jump. Those same markets also had higher median sales prices last month compared to a year ago: in Tallahassee, 10 percent to $158,800; and in Gainesville, 4 percent to $140,400.

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 January 2005 to January 2004 based on Realtor transactions.

The Florida Association of Realtors (FAR), the voice for real estate in Florida, provides programs, services, continuing education, research and legislative representation to its more than 120,000 members in 70 boards/associations.

© 2005 FLORIDA ASSOCIATION OF REALTORS