Housing Bubble
Florida home sales and prices rise
February 14, 2003
In the fourth quarter of 2002, sales of existing single-family homes in Florida continued to climb, with a statewide total of 37,874 homes changing hands compared to the 2001 final quarter figure of 32,573 homes -- a 16 percent increase, according to the Florida Association of Realtors (FAR).
The statewide median sales price rose 13 percent to $142,600; it was $126,700 during fourth quarter 2001. For fourth quarter 1997, the statewide median sales price was $97,700, resulting in a 45.9 percent gain over the five-year period, FAR records show. Nationally, the final quarter 2002 median sales price for existing homes was $161,600, according to the National Association of Realtors (NAR).
Interest rates hovered slightly above 6 percent for most of the quarter, which enticed many move-up buyers to take advantage of the record low rates and encouraged renters to enter the housing market. According to Freddie Mac, a 30-year, fixed-rate mortgage averaged 6.08 percent for fourth quarter 2002, down from 6.29 percent in the third quarter; in fourth quarter 2001, the rate averaged 6.78 percent. FAR's sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.
As one of the state's largest Metropolitan Statistical Areas (MSAs), Fort Lauderdale reported a double-digit increase in both number of homes sold and median sales price for fourth quarter 2002. A total of 3,613 homes changed hands compared to 3,053 sold during the final quarter of 2001 for an 18 percent increase. The median sales price rose 22 percent to $206,500; it was $169,600 a year ago.
Growth continues to spur the area's market, says Larry Rowe, president of the Realtor Association of Greater Fort Lauderdale and broker-owner of Larry Rowe Inc. "Development of the city's downtown is a new and exciting trend," he says. "Many people who had previously bought homes to the west in the outlying areas now want to sell and move back toward downtown to shorten their commute and to be closer to cultural activities."
Other larger MSAs reporting strong resales in the last quarter of 2002 include: Orlando, where 6,890 homes sold for a 16 percent increase; and Jacksonville, where 3,475 homes changed hands for a 10 percent gain. The median sales price in those markets also rose compared to the previous year: in Orlando, reaching $133,800 for a 10 percent boost; and in Jacksonville, reaching $128,000 for a 7 percent increase.
Among the state's smaller markets, the Pensacola MSA posted a 19 percent increase in existing home sales for the final quarter of last year. A total of 1,196 homes sold compared to 1,004 sold during the same time a year ago. The median sales price rose 5 percent to $111,300 compared to $105,800 during fourth quarter 2001.
Pam Smith, president of the Pensacola Association of Realtors and relocation coordinator with Real Estate Counselors Inc., points to the area's beautiful beaches and leisurely lifestyle as a major attraction. "More people are discovering the great quality of life Pensacola has to offer," she says. "Another factor for many homebuyers is that housing prices here are still very affordable when compared with other waterfront communities."
Other smaller markets reporting solid gains in resale activity for the final quarter of 2002 include: Gainesville, where 613 homes sold for a 35 percent gain; Punta Gorda, where 646 homes changed hands for a 25 percent increase; and Melbourne-Titusville-Palm Bay, where 1,608 homes sold for a 23 percent gain. The median sales price in those markets also rose compared to the previous year: in Punta Gorda, reaching $130,000 for a 25 percent increase; in Melbourne-Titusville-Palm Bay, reaching $117,700 for a 20 percent gain; and in Gainesville, reaching $130,800 for a 10 percent rise.
A chart showing statistics for Florida and its 20 MSAs is attached. The chart compares the volume of existing, single-family home sales and median sales prices in fourth quarter 2002 to fourth quarter 2001 based on Realtor transactions.
Florida Sales Report -- 4th Quarter 2002
Single-Family, Existing Homes
Realtor Sales Median Sales Price
Statewide &
Metropolitan
Statistical 4th Qrtr. 4th Qrtr. % 4th Qrtr. 4th Qrtr. %
Areas (MSAs) 2002 2001 Chge 2002 2001 Chge
STATEWIDE 37,874 32,573 16% $142,600 $126,700 13%
Daytona Beach (1) 1,751 1,486 18 $117,100 $95,800 22
Fort Lauderdale 3,613 3,053 18 $206,500 $169,600 22
Fort Myers-Cape
Coral 2,025 1,644 23 $142,700 $129,000 11
Fort Pierce-Port
St. Lucie 1,314 1,119 17 $135,900 $110,600 23
Fort Walton Beach 784 642 22 $139,200 $133,700 4
Gainesville 613 453 35 $130,800 $119,300 10
Jacksonville 3,475 3,148 10 $128,000 $119,600 7
Lakeland-Winter
Haven 1,219 1,111 10 $90,700 $85,000 7
Melbourne-
Titusville-
Palm Bay 1,608 1,307 23 $117,700 $98,200 20
Miami 3,085 2,675 15 $192,800 $165,400 17
Naples 964 705 37 $263,300 $233,400 13
Ocala 1,144 1,153 -1 $86,500 $89,800 -4
Orlando 6,890 5,963 16 $133,800 $121,200 10
Panama City 494 463 7 $128,500 $115,400 11
Pensacola 1,196 1,004 19 $111,300 $105,800 5
Punta Gorda 646 516 25 $130,000 $104,400 25
Sarasota-
Bradenton (2) 2,128 1,661 28 $167,600 $140,900 19
Tallahassee 674 647 4 $140,000 $130,600 7
Tampa-
St. Petersburg-
Clearwater (3) 2,464 2,284 8 $139,700 $129,600 8
West Palm Beach-
Boca Raton (4) N/A N/A N/A N/A N/A N/A
(1) Data for December for Daytona Beach was not available.
(2) Englewood data was not available.
(3) Data for December for Tampa-St. Petersburg-Clearwater MSA was not
available.
(4) Data for West Palm Beach-Boca Raton MSA 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
