Housing Bubble
Florida home sales and prices rise in January
February 25, 2003
ORLANDO, Fla., Feb. 25 /PRNewswire/ -- Historically low mortgage rates boosted Florida's single-family, existing home sales market to a strong start in 2003 with sales increasing 13 percent in January, according to the Florida Association of Realtors (FAR). Statewide, sales of single-family existing homes totaled 10,540 last month compared to 9,308 in January 2002. The statewide median sales price of homes sold last month rose 11 percent to $142,900; a year ago, it was $129,100.
In January 1998, the statewide median sales price for single-family homes was $96,700, resulting in a 47.7 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 $164,000 in December 2002, up 7.1 percent from the previous December. In California, the statewide median resales price was $338,110 in December; in Illinois, it was $163,500; in Virginia, it was $156,120; and in Ohio, it was $147,517.
Across the state, buyers continued to respond to the lure of low interest rates. Last month, interest rates for a 30-year fixed-rate mortgage averaged 6.05 percent, a dramatic drop from the average rate of 7 percent reported in January 2002. 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) reported solid gains in home sales and in the median sales price last month. A total of 1,820 homes changed hands in January 2003 compared to 1,538 homes a year ago for an 18 percent increase. The median sales price rose 7 percent to $137,000; a year ago, it was $128,300.
Alma James Alexander, president-elect with the Greater Tampa Association of Realtors and broker-associate with Coldwell Banker's North Tampa office, says the low interest rates are motivating buyers to purchase homes, especially since prices are going up for rentals in the Tampa Bay area.
"The new home market can't keep up," Alexander says. "The Tampa area has so many good things to offer -- in sports, culture, climate, education, the beaches, the bay and location. Plus, the cost of living here is fairly low compared to other areas, which gives people more discretionary funds to perhaps buy a more expensive home than they could in other markets."
Also reporting increased sales last month compared to the previous year among the larger MSAs: Orlando, where 1,787 homes sold for a 10 percent increase; and Jacksonville, where 910 homes changed hands, also for a 10 percent gain. The median sales price of the homes sold in those markets also rose compared to a year ago: in Orlando, a 13 percent increase to $131,900; and in Jacksonville, a 4 percent gain to $118,200.
Among the state's smaller markets, Fort Walton Beach reported strong sales for January 2003, with a total of 232 homes sold compared to 184 a year ago -- a 26 percent increase. The median sales price also rose 26 percent to $148,900; a year ago, it was $118,500.
Kerry Veach, president of the Emerald Coast Association of Realtors and a broker with REMAX Southern Realty in Fort Walton Beach, says the area's military bases are a major factor influencing the housing market's current growth.
"We have a lot of people being transferred and coming into Fort Walton Beach now because of what's happening with the Armed Forces," Veach says. "They're calling in so many of the military reserves that it's causing a high demand for homes. In fact, it's hard to find a house (near the bases) right now. Also, people want to take advantage of the incredibly low interest rates while they can."
Other small- to medium-sized MSAs in the state reporting solid gains in their housing markets last month compared to January 2002 include: Naples, where 295 homes sold for a 42 percent increase; and Panama City, where 140 homes sold for a 31 percent increase. Those same markets also had higher median sales prices last month compared to a year ago: in Panama City, a 35 percent increase to $142,000; and in Naples, a 7 percent gain to $283,600.
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 January 2003 to January 2002 based on Realtor transactions.
Florida Sales Report - January 2003
Single-Family, Existing Homes
Realtor Sales Median Sales Price
Statewide &
Metropolitan
Statistical January January % January January %
Areas (MSAs) 2003 2002 Chge 2003 2002 Chge
STATEWIDE 10,540 9,308 13% $142,900 $129,100 11%
Daytona Beach (1) 351 298 18 $121,600 $106,500 14
Fort Lauderdale 908 825 10 $200,300 $172,700 16
Fort Myers
-Cape Coral 606 443 37 $144,000 $132,400 9
Fort Pierce
-Port St. Lucie 355 305 16 $141,600 $109,200 30
Fort Walton Beach 232 184 26 $148,900 $118,500 26
Gainesville 138 113 22 $121,700 $125,400 -3
Jacksonville 910 828 10 $118,200 $114,200 4
Lakeland-
Winter Haven 322 275 17 $84,800 $91,700 -8
Melbourne-Titusville
-Palm Bay 358 390 -8 $127,800 $103,900 23
Miami 760 781 -3 $197,900 $161,600 22
Naples 295 208 42 $283,600 $265,000 7
Ocala (2) N/A N/A N/A N/A N/A N/A
Orlando 1,787 1,628 10 $131,900 $116,900 13
Panama City 140 107 31 $142,000 $105,000 35
Pensacola 282 248 14 $111,900 $107,400 4
Punta Gorda 235 239 -2 $131,800 $110,000 20
Sarasota
-Bradenton(3) 323 319 1 $194,400 $161,500 20
Tallahassee 219 150 46 $136,500 $134,700 1
Tampa-St. Petersburg
-Clearwater 1,820 1,538 18 $137,000 $128,300 7
West Palm Beach
-Boca Raton (4) N/A N/A N/A N/A N/A N/A
(1) Data for Daytona Beach was not available.
(2) Data for Ocala was not available.
(3) Data for Manatee County and Englewood was not available.
(4) Data for West Palm Beach-Boca Raton MSA was not available.
Source: Florida Association of Realtors
