Housing Bubble
Florida home sales and prices rise in February
March 25, 2003
ORLANDO, Fla., Sales of single-family existing homes in Florida continued to set a brisk pace in February, with a total of 12,218 homes sold statewide -- a 10 percent increase over the 11,078 homes sold a year ago, according to the Florida Association of Realtors(R) (FAR).
The statewide median sales price stayed on the upswing with an 8 percent increase to reach $140,500 last month; a year ago, it was $129,500. In 1998, the statewide median sales price was $97,500, translating to a 44.1 percent increase over the five-year period, according to FAR records. 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 $160,400 in January, up 6.7 percent from the previous January. In California, the statewide median resales price was $336,740, in January; in Illinois, it was $159,879; in Virginia, it was $155,583; and in Ohio, it was $140,119.
Interest rates that remained at record lows all month -- still below 6 percent -- enticed buyers in markets across the state to become homeowners. Last month, interest rates for a 30-year fixed-rate mortgage averaged 5.84 percent compared to the 6.89 percent rate averaged last February. 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 Orlando Metropolitan Statistical Area (MSA) reported increased resales activity and a boost in the median sales price in February. A total of 1,999 homes sold in the area last month compared to 1,785 a year ago for a 12 percent gain. The median sales price rose 12 percent to $135,600; a year ago, it was $121,100.
Dean Asher, president of the Orlando Regional Realtor Association and vice president of Don Asher & Associates Inc. says the current low interest rates and increased Realtor membership are having a positive impact on housing activity in the area.
"What's special about the Orlando market is that it's a growing area," he says. "There's a lot of job growth. Many corporations are moving here and it opens up opportunities for new jobs, and the people filling those jobs need homes."
Other larger MSAs reporting higher home sales last month compared to the previous February include: Jacksonville, where 1,054 homes changed hands for a 15 percent increase; and Tampa-St. Petersburg-Clearwater, where 1,993 homes sold for a 7 percent gain. The median sales price also rose in those markets over the same time period: in Jacksonville, 9 percent to $126,400; and in Tampa-St. Petersburg-Clearwater, 4 percent to $135,100.
As for smaller markets in Florida, February was a good month for Fort Pierce-Port St. Lucie, with gains posted in both the number of home sales and median sales price. A total of 416 homes changed hands last month compared to 362 homes a year ago for a 15 percent increase, while the median sales price rose 23 percent to $139,000; a year ago, it was $113,000.
Bob Lowe, CIPS, president of the St. Lucie Association of Realtors and broker-president of Lowe's International Realty Plus Inc., points to the area's convenient location to South Florida, a growing commercial base and affordable home prices as some of the factors driving the strong housing market.
"The PGA (Professional Golf Association) has been a great asset for the community, bringing a lot of people into the area," he says. "And as long as mortgage rates stay below 6 percent, that will continue to encourage people to become homeowners."
Also reporting increases in last month's sales for the state's smaller and medium-size markets were: Panama City, where 156 homes sold for a 39 percent increase; and Sarasota-Bradenton, where 602 homes changed hands for a 10 percent gain. The median sales price in those markets also rose: in Panama City, 14 percent to $130,900; and in Sarasota-Bradenton, 13 percent to $173,000.
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 February 2003 to February 2002, 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 90,000 members in 70 boards/associations.
Florida Sales Report - February 2003
Single-Family, Existing Homes
Statewide & Realtor Sales Median Sales Price
Metropolitan
Statistical February February % February February %
Areas (MSAs) 2003 2002 Chge 2003 2002 Chge
STATEWIDE 12,218 11,078 10% $140,500 $129,500 8%
Daytona Beach 709 519 37 $114,500 $99,400 15
Fort Lauderdale 940 938 -- $210,800 $179,800 17
Fort Myers-
Cape Coral 650 610 7 $135,900 $132,300 3
Fort Pierce-
Port St. Lucie 416 362 15 $139,000 $113,000 23
Fort Walton
Beach 225 208 8 $136,400 $128,300 6
Gainesville 155 186 -17 $131,500 $123,200 7
Jacksonville 1,054 913 15 $126,400 $115,800 9
Lakeland-
Winter Haven 349 348 -- $83,100 $81,700 2
Melbourne-
Titusville-
Palm Bay 455 429 6 $123,000 $98,500 25
Miami 812 791 3 $195,100 $164,000 19
Naples 292 282 4 $273,100 $257,000 6
Ocala (1) N/A N/A N/A N/A N/A N/A
Orlando 1,999 1,785 12 $135,600 $121,100 12
Panama City 156 112 39 $130,900 $114,400 14
Pensacola 349 273 28 $112,400 $111,900 --
Punta Gorda 268 250 7 $124,700 $108,300 15
Sarasota-
Bradenton (2) 602 548 10 $173,000 $153,200 13
Tallahassee 268 176 52 $128,500 $135,900 -5
Tampa-St. Petersburg-
Clearwater 1,993 1,871 7 $135,100 $129,500 4
West Palm Beach-
Boca Raton (3) N/A N/A N/A N/A N/A N/A
(1) Ocala data was not available.
(2) Data for Englewood was not available.
(3) Data for the 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
