|
The Real Estate Web Blog
Filed under: Real Estate News
— admin @ 9:06 am
ORLANDO, Fla., June 23 /PRNewswire/ — A strong labor market, continued low mortgage rates and a growing economy set the stage for a 7 percent increase in existing single-family home sales in Florida in May, with a total of 24,069 homes sold statewide compared to last year’s level of 22,496 homes sold, according to the Florida Association of Realtors® (FAR).
“Sales of existing single-family homes across Florida are maintaining a healthy pace,” says David Scott, executive director of the Dr. Phillips Institute for the Study of American Business Activity and professor of finance at the University of Central Florida (UCF). “Such sales rates are sustainable in an expanding national economy and Florida posts some of the strongest business conditions indicators in the U.S. Florida’s labor market, for example, is one of the firmest in the country.”
The statewide median sales price climbed 27 percent to $230,800; a year ago, it was $181,900. In May 2000, the statewide median sales price was $115,100 — a dramatic increase of about 100 percent over the five-year period, according to FAR records. In comparison, in California, the statewide median resales price in April was $509,230; in Maryland, it was $275,846; in New York, it was $242,000.
Keeping in mind the history of interest rates and mortgage rates, Scott took a look at their impact on median sales prices in the state. “The acceleration in median sales prices (both for the May comparison and for the 2005 year) of approximately 27 percent is not sustainable,” he says. “Such price increases are being driven by a once-in-a-lifetime low interest rate environment and opportunity. Thus, this is more of an ‘interest rate bubble’ than a ‘housing bubble.’ Most investors and consumers do not have a long-term perspective on the behavior of interest rates.
“But for comparison purposes, back in October 1981, conventional mortgage rates hit 18.45 percent compared to the rates of today, which are in the vicinity of 5.63 percent. In addition, at that same time in 1981, inflation at the consumer level was in the vicinity of 10.3 percent compared to the most- recent observation of 2.8 percent. The key point is that observed inflation and expected inflation rates drive long-term interest rates. It is, therefore, interest rate changes in the final analysis that will help determine the robustness of the Florida and national housing markets,” he says.
According to Freddie Mac, the average rate for a 30-year fixed-rate mortgage was 5.72 percent last month, up from 6.27 percent in May 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 Tampa-St. Petersburg-Clearwater metropolitan statistical area (MSA) had the largest number of resales last month with 5,482 homes changing hands, a 27 percent increase over the 4,330 homes sold in May 2004. The market’s median sales price rose 25 percent to $196,100; a year ago, it was $156,800.
“It’s a strong market, and the reason for it is that the Tampa area is a great place to live with a good job base, a convenient location and a world- class airport,” says George Bodmer, president of the Greater Tampa Association of Realtors and co-owner of Brandon-based Bayside Realty Group Inc.
Other larger Florida MSAs reporting higher home sales in May include: Jacksonville, where 1,671 homes sold for a 9 percent increase; and Orlando, where 3,657 homes changed hands for a 5 percent gain. The median sales price in those markets also rose last month: in Orlando, 35 percent to $218,600; and in Jacksonville, 12 percent to $181,700.
Among the smaller markets across the state, Tallahassee had a strong double-digit increase in the percentage of resales last month with 513 homes changing hands for a 34 percent jump over the 384 homes sold a year ago. The market’s median sales price increased 6 percent to $164,700; a year ago it was $155,800.
“Sales have been going strong — the still very low mortgage rates are encouraging people to buy now rather than wait,” says Kenny Ayers, president elect of the Tallahassee Board of Realtors and a new-home specialist with Heritage Homes Realty of Tallahassee. “The universities and community college are bringing new residents in for jobs and school, along with the hospitals. People are discovering that the Tallahassee area has a lot to offer in terms of lifestyle, cultural events and educational activities.”
Other smaller MSAs reporting strong sales in May include: Gainesville, where 461 homes sold for a 39 percent increase; and Naples, where 476 homes changed hands for a 14 percent rise. The median sales price also rose in those markets during the same period: in Naples, 34 percent to $488,900; and in Gainesville, 6 percent to $169,600.
A chart showing statistics for Florida and its 20 MSAs follows. The chart compares the volume of existing, single-family home sales and median sales prices in May 2005 to May 2004, 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 more than 125,000 members in 70 boards/associations.
Florida Sales Report - May 2005
Single-Family, Existing Homes
Realtor Sales Median Sales Price
Statewide &
Metropolitan May May % May May %
Statistical Areas 2005 2004 Chge 2005 2004 Chge
(MSAs)
STATEWIDE 24,069 22,496 7% $230,800 $181,900 27%
STATEWIDE-YEAR-TO-DATE 105,835 100,006 6 $215,900 $170,400 27
Daytona Beach 1,445 1,261 15 $197,900 $157,800 25
Fort Lauderdale 1,067 1,347 -21 $367,000 $273,800 34
Fort Myers-Cape Coral 1,309 1,011 29 $273,500 $195,300 40
Fort Pierce-
Port St. Lucie 662 647 2 $253,200 $187,800 35
Fort Walton Beach 466 474 -2 $261,600 $189,600 38
Gainesville 461 331 39 $169,600 $160,300 6
Jacksonville 1,671 1,527 9 $181,700 $161,800 12
Lakeland-Winter Haven 545 554 -2 $137,400 $113,200 21
Melbourne-Titusville-
Palm Bay (1) 401 410 -2 $222,100 $160,400 38
Miami 1,189 1,147 4 $354,900 $264,900 34
Naples 476 416 14 $488,900 $356,600 34
Ocala 526 530 -1 $137,100 $108,800 26
Orlando 3,657 3,495 5 $218,600 $162,000 35
Panama City (2) N/A N/A N/A N/A N/A N/A
Pensacola 582 542 7 $158,600 $130,300 22
Punta Gorda 398 444 -10 $216,200 $177,200 22
Sarasota-Bradenton 1,234 1,352 -9 $316,600 $240,800 31
Tallahassee 513 384 34 $164,700 $155,800 6
Tampa-St. Petersburg-
Clearwater 5,482 4,33 27 $196,100 $156,800 25
West Palm Beach-
Boca Raton 1,335 1,551 -14 $390,900 $290,200 35
(1) Data was not available from the Space Coast Association of Realtors.
(2) Data was not available.
This information is based on a survey of MLS sales levels from Florida’s Realtor boards/associations. MSAs are defined by the 2000 Census. Source: Florida Association of Realtors® and the University of Florida Real Estate Research Center.
Source: Florida Association of Realtors(R)
Sphere: Related Content
          
No comments yet.
RSS feed for comments on this post. TrackBack URL
Tags:
idx, vow, real estate websites, real estate website design, real estate web design, real estate marketing, google maps, yahoo maps, web design guide, web design, web colors, virtual office websites, tutorial, realtors, real estate web 20, real estate web, real estate mapping, real estate blogsites, real estate, property search, personal branding, palm, nar, mls, mashups, mapplets, mapping, map search, iphone, internet data exchange, inspiration, digital photos, colors, color scheme, casual friday
|
