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Jeff Zipper, Vice President of Communications
407/438-1400, ext. 2314
JeffZ@far.org
Marla Martin, Communications Manager
407/438-1400, ext. 2326
MarlaM@far.org
Florida’s Existing Home Sales Gain 15 Percent in July
ORLANDO, Fla., August 24, 2004 -- Sparked by continued low mortgage rates, first-time and move-up buyers across Florida pushed July's sales of existing single-family homes 15 percent above the previous-year mark, according to the Florida Association of Realtors®. Statewide, a total of 23,554 homes sold last month compared to 20,503 homes in July 2003.
In another sign of Florida's robust housing market, the statewide median sales price also rose 15 percent to $186,700; a year ago, it was $162,600. In July 1999, the statewide median sales price for existing single-family homes was $101,800, representing an increase of about 83.4 percent over the five-year period, FAR records show.
Florida’s median sales price compares favorably to the national median sales price for existing single-family homes, which was $191,800 in June, up 9.6 percent from June 2003 when the median price was $175,000. In California, the statewide median resales price was $469,170 in June; in Maryland, the statewide average resales price was $300,355; in New York, the median price was $250,000; in North Carolina, the average resales price was $202,665; and in Illinois, the statewide median price was $188,100.
The housing sector continues to boost the U.S. economy even as it gains momentum, which usually spurs slightly higher mortgage rates. Still, despite the Federal Reserve raising a key interest rate a quarter-percentage point in late June and again in early August -- the first hikes since May 2000 -- mortgage rates have remained at favorably low levels.
Interest rates for a 30-year fixed-rate mortgage averaged 6.06 percent in July, an increase from the 5.63 percent rate for the same month 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), Jacksonville reported a 38 percent increase in resales activity last month, with a total of 1,536 homes changing hands compared to 1,113 homes sold a year ago. The area's median sales price rose 6 percent to $159,000; a year ago, it was $149,700.
Andre Boutte, president of the Northeast Florida Association of Realtors and director of training with Watson Realty Corp. in Jacksonville, credits low mortgage rates for fueling home sales in the area.
"The city's economy remained robust, people are still coming to Florida and job opportunities are available here," he says. "And as long as we see mortgage rates at this level, we're going to experience high demand for homes and a shortage of supply."
Other large Florida MSAs reporting strong sales activity for July compared to a year ago include: Orlando, where 3,883 homes sold for a 27 percent gain; and Tampa-St. Petersburg-Clearwater, where 4,711 homes sold for a 17 percent increase. The median sales price of the homes sold in those markets also rose last month: in Tampa-St. Petersburg-Clearwater, 17 percent to $167,500 and in Orlando, 12 percent to $171,000.
Among the state’s smaller MSAs, Lakeland-Winter Haven posted the biggest percentage increase in July home sales, with a total of 578 homes changing hands compared to 449 homes a year ago for a 29 percent gain. The area's median sales price rose 11 percent to $115,600; a year ago, it was $104,600.
Jane Tyl, president of the East Polk County Association of Realtors and a Realtor with Choice-Dantzler Properties in Winter Haven, says homebuyers are attracted to the area since it still offers a growing community with a small-town atmosphere and more relaxed, leisurely lifestyle.
"So many people are moving to this area to take advantage of the location and the great access it provides with major transportation routes to Tampa and Orlando," she says.
Other smaller MSAs reporting major increases in resales activity last month compared to a year ago include: Punta Gorda, where 415 homes sold for a 19 percent jump; and Fort Walton Beach, where 489 homes changed hands for a 12 percent increase. The median sale price in those markets also rose: in Punta Gorda, 30 percent to $176,800; and in Fort Walton Beach, 13 percent to $186,800.
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 July 2004 to July 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.
