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Marla Martin, Communications Manager
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Up and Away: Florida Home Sales, Median Price Soar to Record Heights in September

ORLANDO, Fla., Oct. 27, 2003 -- Florida’s housing market is on a roll, skyrocketing to record heights in September in terms of number of sales and median sales price, according to the Florida Association of Realtors (FAR). Fears that the current low mortgage rates may be heading higher sparked many homebuyers to make their purchase decisions now, say Realtors across Florida, who also report that heavy demand for existing homes resulted in low inventory in many markets.

Statewide, sales of single-family, existing homes rose 34 percent last month, with a total of 18,222 homes sold compared to 13,585 homes a year ago. The statewide median sales price climbed 12 percent to $158,800 compared to $141,400 in September 2002. In September 1998, the statewide median sales price for single-family existing homes was $102,400, translating to a 55 percent increase 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 $177,500 in August, up 9.8 percent from the previous August when it was $161,700. In California, the statewide median resales price was $404,870 in August; in New York, the median price was $223,000; in North Carolina, the average resales price was $184,908; in Illinois, the median price was $184,500; and in Ohio, the average statewide resales price was $156,932.

Interest rates for a 30-year fixed-rate mortgage averaged 6.15 percent in September, edging up from the average rate of 6.09 percent 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 Orlando metropolitan statistical area (MSA), reported a 35 percent increase in sales last month, with 2,949 homes sold compared to 2,188 homes a year ago. The area’s median sales price rose 9 percent to $144,900; a year ago it was $132,600.

Dean Asher, president of the Orlando Regional Realtor Association and vice president of Don Asher and Associates, says that buyers realize they should take advantage of these low mortgage rates while the opportunity is available.

“Now that the economy is picking up and people have seen the rates rise and fall and rise again, they're deciding it's time to buy,” he says. “In Orlando, new jobs are coming into the area along with new developments such as Avalon, and that's influencing the housing market.”

Other large MSAs reporting strong home sales last month include: Tampa-St. Petersburg-Clearwater, where 3,062 homes changed hands for a 44 percent increase; and West Palm Beach-Boca Raton, where 1,329 homes sold for a 33 percent gain. The median sales price in those markets also rose: in West Palm Beach-Boca Raton, 25 percent to $252,600; and in Tampa-St. Petersburg-Clearwater, 9 percent to $148,800.

Tallahassee, one of the state’s smaller MSAs, recorded a 57 percent boost in home sales in September, with 299 homes sold compared to 190 homes a year ago. The market’s median sales price rose 9 percent to $147,800 last month; a year ago, it was $136,100.

“Just recently, the university system here has gone through a lot of people taking early retirement, resulting in a huge influx of new faculty members from out of the area,” says Kevin Hattaway, president of the Tallahassee Board of Realtors and a sales associate with Linda Dix Realty. “Enrollment continues to grow at Florida State, Florida A&M and Tallahassee Community College, and with mortgage rates so low, more parents are deciding to buy rather than rent when it comes to helping their children find student housing.”

Other smaller MSAs reporting dramatically higher home sales last month include: Pensacola, where 525 homes sold for a dramatic 90 percent increase; and Panama City, where 219 homes changed hands for a 59 percent gain. The median sales price in those markets also rose: in Panama City, 13 percent to $142,000; and in Pensacola, 3 percent to $117,200.

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 September 2003 to September 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