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Florida's Home Resales' Median Price Rises 20 Percent in October

ORLANDO, Fla., Nov. 23, 2004 -- Economists have predicted that the strong housing market will continue into next year, and October home sales statistics from the Florida Association of Realtors® (FAR) show that Florida's existing home resale market is regaining momentum following the four hurricanes that hit the state during the previous two months. 

Despite closing delays, difficulties obtaining homeowners' insurance and problems in completing repairs because of the storms, the statewide median sales price rose 20 percent to $190,800 last month; a year ago, it was $159,600. Since 2004 began, the statewide median sales price has shown double-digit gains each month, according to FAR. In 1999, FAR records show the statewide median sales price was $104,700, resulting in an increase of 82.2 percent over the five-year-period. 

Realtors across the state cite continuing low mortgage rates and tight inventories of available homes for sale as factors in Florida's resales activity. Statewide, a total of 16,811 existing single-family homes sold last month compared to 18,949 homes a year ago for a drop of 11 percent, according to FAR. 

Florida’s median sales price of $190,800 compares well to September's national median existing-home price of $186,600, up 8.6 percent from the previous September when the median price was $171,800. In California, the statewide median resales price was $465,540 in September; in New York, the median price was $254,900; in North Carolina, the average resales price was $194,304; in Virginia, the median price was $167,675; and in Ohio, the average statewide resales price was $151,596. 

Interest rates for a 30-year fixed-rate mortgage averaged 5.72 percent in October, even lower than the average rate of 5.95 percent recorded a year ago. 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 Tampa-St. Petersburg-Clearwater metropolitan statistical area (MSA) reported that, in spite of the hurricanes' impact, existing home sales remained at virtually the same levels last month as those reported a year ago with a total of 3,598 homes sold in October compared to 3,609 homes last year. The area’s median sales price rose 18 percent last month to $167,300; a year ago, it was $141,400. 

Michael Bindman, FAR's District 6 vice president and treasurer of the Pinellas Suncoast Association of Realtors notes that the Tampa Bay area did not experience the same kind of hurricane damage and related problems that other areas in the state did. Bindman, who is broker-vice president and team leader of Keller Williams Gulf Coast Realty's St. Petersburg office, says that low mortgage rates contribute to buyer demand. 

“A great location, good job market, low interest rates, low inventory and high demand,” he says. “That's the story behind the housing market in Tampa Bay.” 

Jacksonville, another large Florida MSA, also reported higher sales for October compared to a year ago: A total of 1,068 homes changed hands for a 2 percent increase, while the area's median sales price rose 18 percent to $160,000. 

Among the state’s smaller MSAs, Pensacola posted a 26 percent gain in home sales in October, with 515 homes changing hands compared to 409 homes a year ago. The market’s median sales price rose 23 percent last month to $143,600; last year, it was $116,800. 

Resales increased in October despite the beating that Pensacola took from Hurricane Ivan, says Julia Harbols, president of the Pensacola Association of Realtors and a broker-associate with Eric Gleaton Realty Inc. 

“Following the hurricane, many people are still dealing with homes that were destroyed or need extensive repair, rentals are scarce and hotels are booked,” she says. “Inventory is very tight, but our demand also remains high. Many of our residents are able to afford to buy a second home, which is what they're doing, so they can live in that home now and either keep it for an investment property or sell it when they're able to complete repairs. We also have a lot of people moving into the area, and our prices, while rising, are still affordable.” 

Other smaller MSAs that posted gains in the number of homes sold in October include: Fort Walton Beach, where 427 homes sold for a 23 percent jump; and Tallahassee, where 334 homes sold for a 5 percent increase. The median sales price in those markets also rose: in Fort Walton Beach, 30 percent to $201,500; and in Tallahassee, 2 percent to $145,600.

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 October 2004 to October 2003, 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.

© 2004 FLORIDA ASSOCIATION OF REALTORS