Housing Bubble
Florida home prices and sales rise
April 25, 2003
ORLANDO, Fla., -- Florida home sales stayed on the upswing in March, with a total of 15,391 homes sold statewide for a 7 percent over last year's sales of 14,433 homes, according to the Florida Association of Realtors (FAR).
The statewide median price rose 12 percent to $151,700; a year ago, it was $135,600. In March 1998, the statewide median sales price was $96,800, resulting in a 56.7 percent increase over the five-year period, FAR records show. The median is a typical market price where half the homes sold for more, half for less.
Florida's median sales price compares favorably to the national median sales price for existing single-family homes, which was $161,600 in February, up 8.2 percent from the previous February when it was $149,400. In California, the statewide median resales price was $327,600 in February; in North Carolina, it was $168,579; in Illinois, it was $153,200; and in Ohio, it was $140,721.
Markets across the state reported strong sales and low inventory as buyers took advantage of low interest rates. The average interest rate for a 30-year fixed-rate mortgage was 5.75 percent last month, a dramatic drop from the 7.01 percent rate 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 Jacksonville Metropolitan Statistical Area (MSA) reported a 16 percent boost in home sales last month with a total of 1,238 sold; a year ago, 1,067 homes sold. The median sales price rose 13 percent to $130,700; last year, it was $116,100.
Selby Kaiser, president of the Northeast Florida Association of Realtors and broker-salesperson with Prudential Network Realty, cites the area's business community for its efforts in promoting Jacksonville and attracting new business to the city, which in turn boosts the housing market.
"For example, Fidelity National Financial just bought the information division of Alltel, which has an office building in Jacksonville, and now Fidelity is seriously considering moving its corporate headquarters from Santa Barbara, Calif., to Jacksonville," she says. "That could mean a lot of new jobs, and those people would be looking for homes."
Some of the other large Florida MSAs reporting higher home sales last month include: West Palm Beach-Boca Raton, where 1,240 homes changed hands for a 6 percent increase; Orlando, where 2,473 homes sold for a 5 percent gain; and Tampa-St. Petersburg-Clearwater, where 2,391 homes sold for a 2 percent increase over March 2002 sales. The median sales price also rose in the three MSAs -- a gain of 24 percent, 11 percent and 9 percent, respectively.
Also reporting a strong month for resales activity was Daytona Beach -- one of the state's medium-size markets -- with 912 homes changing hands compared to 705 home sales a year ago for an increase of 29 percent. The median sales price rose 23 percent in March to $127,800; a year ago, it was $104,100.
Low interest rates and a general movement toward real estate investment are having a positive impact on the Daytona Beach housing market, just as they are generating sales throughout Florida, says Greg Antonich, president of the Daytona Beach Area Association of Realtors and a broker-salesperson with RE/MAX Realty Inc.
"Daytona Beach still represents an excellent value to a homebuyer in terms of home value and price, especially for a coastal community," he says. "Along with affordability, we offer a high quality of life and a geographic location that offers easy transportation options."
Other smaller MSAs in the state posting higher March sales compared to last year include: Naples where 383 homes sold for a 25 percent increase; Tallahassee where 278 homes changed hands for a 27 percent rise; and Melbourne-Titusville-Palm Bay where 620 homes sold for a 21 percent increase.
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 March 2003 to March 2002, based on Realtor transactions.
Florida Sales Report - March 2003
Single-Family, Existing Homes
Realtor Sales Median Sales Price
Statewide &
Metropolitan
Statistical March March % March March %
Areas (MSAs) 2003 2002 Chge 2003 2002 Chge
STATEWIDE 15,391 14,433 7% $151,700 $135,600 12%
Daytona Beach 912 705 29 $127,800 $104,100 23
Fort Lauderdale 1,268 1,242 2 $213,300 $187,700 14
Fort Myers-
Cape Coral (1) 627 615 2 $143,700 $125,600 14
Fort Pierce-
Port St. Lucie (2) 268 258 4 $127,100 $97,800 30
Fort Walton Beach 292 248 18 $137,300 $131,400 4
Gainesville 259 185 40 $133,900 $125,800 6
Jacksonville 1,238 1,067 16 $130,700 $116,100 13
Lakeland-
Winter Haven 429 425 1 $90,200 $82,400 9
Melbourne-
Titusville-
Palm Bay 620 512 21 $123,000 $106,500 15
Miami 1,051 1,081 -3 $196,600 $172,600 14
Naples (3) 383 306 25 $271,500 $233,700 16
Ocala (4) N/A N/A N/A N/A N/A N/A
Orlando 2,473 2,362 5 $137,700 $124,400 11
Panama City 151 155 -3 $129,000 $114,100 13
Pensacola 366 405 -10 $112,500 $109,700 3
Punta Gorda (5) N/A N/A N/A N/A N/A N/A
Sarasota-
Bradenton (6) 621 578 7 $174,500 $158,000 10
Tallahassee 278 219 27 $129,400 $130,300 -1
Tampa-
St. Petersburg-
Clearwater 2,391 2,335 2 $140,900 $129,600 9
West Palm Beach-
Boca Raton 1,240 1,175 6 $227,200 $183,500 24
(1) Data for Cape Coral, Sanibel and Captiva was not available.
(2) Martin County data was not available.
(3) Data for Marco Island was not available.
(4) Ocala data was not available.
(5) Historical data for Punta Gorda was not available.
(6) Data for Venice 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.
The Florida Association of Realtors (FAR), 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.
Source: Florida Association of Realtors
