FLORIDA'S Home Sales Rise 31 Percent to Record Heights in June ...

July 26, 2004
Just like June's temperatures, Florida's housing market blazed red-hot and set a record pace for the month. Statewide sales of existing single-family homes rose 31 percent with a total of 26,791 homes sold compared to 20,428 homes a year ago, according

Realtors in many markets across Florida report that the supply of homes for sale is extremely tight, demand remains high and prices are rising. Despite modest increases, interest rates remained favorably low in June, which likely contributed to the low inventory of available homes in many areas. The 30-year fixed mortgage rate averaged 6.29 percent last month, compared to a rate of 5.23 percent recorded in June 2003. FAR's sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

The statewide median sales price rose 19 percent to $189,700 last month; a year ago, it was $159,800. In June 1999, Florida's median sales price was $105,200, according to FAR records, resulting in an increase of 44.5 percent over the five-year period.

Florida's median sales price compares favorably to the national median sales price for existing single-family homes, which was $183,600 in May, up 10.3 percent from May 2003 when the median price was $166,400. In California, the statewide median resales price was $465,160 in May; in Maryland, the average resales price was $279,754; in New York, the median price was $229,900; in North Carolina, the average resales price was $188,977; and in Illinois, the statewide median price was $184,400.

Among Florida's larger markets, the Orlando Metropolitan Statistical Area (MSA) reported the highest percentage increase -- 47 percent -- in resales last month, with a total of 4,132 homes changing hands compared to 2,807 homes sold a year ago. The area's median sales price rose 13 percent to $167,600; a year ago, it was $148,600.

Greg Rokeh, president of the Orlando Regional Realtor Association and REO specialist with Watson Realty Corp. in Orlando, says, "There's no inventory. We had 7,400 plus listings (of homes for sale) at this time last year and we had 4,200 listings this June, so you can see the pattern and the demand for housing in Orlando. Until the mortgage rate gets to around 8 percent or 8.5 percent, I don't think the rate increases are going to impact our home sales."

Other large to medium-size markets reporting strong home sales in June include: Sarasota-Bradenton, where 1,604 homes sold for a 66 percent jump; and Tampa-St. Petersburg-Clearwater, where 5,149 homes changed hands for a 33 percent gain. The median sales price also rose in those markets last month: in Sarasota-Bradenton, 30 percent to $242,900; and in Tampa-St. Petersburg- Clearwater, 17 percent to $169,400.

In the state's smaller MSAs, Naples had a dramatic 50 percent boost in resales activity last month, with a total of 615 homes sold compared to 411 homes sold the previous June. The market's median sales price rose 42 percent to $430,700; a year ago, it was $302,900.

"The mortgage rates are still very good and the outlook for the economy is positive, both nationally and statewide," says Michele Ellis Harrison, president-elect of the Naples Board of Realtors and Association of Real Estate Professionals. She is also director of sales with Elias Brothers Communities in Naples. "Those two factors are encouraging people to buy. We're seeing some pent-up sales from buyers who didn't make a home purchase for whatever reason last year, who now are deciding this is the time to enter the market."