Housing Bubble
Florida's home sales increase 6 percent in May
June 26, 2003
ORLANDO, Fla., /PRNewswire/ -- No mayday for Florida's housing market: Sales of existing single-family homes in Florida rose 6 percent last month to a total of 19,135; in May 2002, the number of homes sold statewide totaled 17,997 according to the Florida Association of Realtors(R) (FAR).
The statewide median sales price also reflected the upswing with an 8 percent boost to $151,200; a year ago, it was $139,900. In May 1998, the statewide median sales price was $99,800, resulting in a 51.5 percent increase over the five-year period, according to FAR records.
Florida's median sales price compares favorably to the national median sales price for existing single-family homes, which was $163,400 in April, up 6.8 percent from the previous April when it was $153,000. In California, the statewide median resales price was $363,930 in April; in North Carolina, the average resales price was $183,242; in Virginia, the statewide median price for the month was $164,672; in Illinois, the median price was $167,902; and in Ohio, the average statewide resales price was $143,397.
Record low interest rates, combined with tight inventory and rising home values, prompted many first-time and move-up buyers to purchase existing homes as quickly as possible, reported Realtors from around the state. The average rate for a 30-year fixed-rate mortgage was 5.48 percent last month, dramatically lower than the 6.81 percent rate in May 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) had the largest number of resales last month with 3,533 homes sold, a 13 percent increase over the 3,123 homes that changed hands in May 2002. The MSA's median sales price rose 8 percent to $138,600; a year ago, it was $128,300.
Low interest rates, affordability and a strong transportation system are factors driving the Tampa Bay area's housing market, says Bob Memoli, president of the West Pasco County Board of Realtors and broker-owner for Florida Luxury Realty Inc. in New Port Richey. "The Pasco road system is continually being enhanced, which is a big advantage and makes it easier for people to live here and commute to jobs in Pinellas or Hillsborough counties," he says. "Plus, the county offers a lot of housing programs to help first-time buyers with downpayment and closing costs."
Other larger Florida MSAs reporting higher home sales in May include: Orlando, where 2,761 homes changed hands for a 4 percent gain; and Fort Lauderdale, where 1,359 homes sold, also for a 4 percent increase. The median sales price in those markets also rose last month: in Fort Lauderdale, 11 percent to $214,900; and in Orlando, 6 percent to $139,300.
In the smaller markets across the state, Panama City reported double-digit gains in the percentage of resales last month with 221 homes sold for a 42 percent increase over the 156 homes sold a year ago. The market's median sales price received a 21 percent boost to $137,200; a year ago it was $113,600.
"More people are realizing the great quality of life that Bay County has to offer," says Jimmy Wiselogel, president of the Bay County Association of Realtors and a Realtor with Florida Resort Property Group Inc. "There's a push to revitalize some of the commercial sectors and that's bringing new interest."
Other smaller MSAs reporting strong sales in May include: Pensacola, where 587 homes sold for a 47 percent increase; and Gainesville, where 313 homes changed hands for a 19 percent rise. The median sales price also rose in those markets during the same period: in Gainesville, 10 percent to $143,500; and in Pensacola, 6 percent to $114,400.
The following chart presents statistics for Florida and its 20 MSAs. The chart compares the volume of existing, single-family home sales and median sales prices in May 2003 to May 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 - May 2003
Single-Family, Existing Homes
Realtor Sales Median Sales Price
Statewide &
Metropolitan May May % May May %
Statistical 2003 2002 Chge 2003 2002 Chge
Areas (MSAs)
STATEWIDE 19,135 17,997 6% $151,200 $139,900 8%
Daytona Beach 1,025 844 21 $130,200 $108,700 20
Fort Lauderdale 1,359 1,310 4 $214,900 $193,500 11
Fort Myers-
Cape Coral 808 759 6 $163,000 $156,900 4
Fort Pierce-
Port St. Lucie 510 545 -6 $142,900 $126,200 13
Fort Walton Beach 401 345 16 $164,900 $143,600 15
Gainesville 313 264 19 $143,500 $130,000 10
Jacksonville 1,202 1,239 -3 $132,300 $124,600 6
Lakeland-
Winter Haven 450 437 3 $89,200 $89,600 --
Melbourne-
Titusville-Palm Bay 701 623 13 $129,900 $116,000 12
Miami 1,100 1,187 -7 $209,600 $182,000 15
Naples (1) 368 341 8 $287,000 $264,600 8
Ocala 426 555 -23 $84,300 $99,200 -15
Orlando 2,761 2,663 4 $139,300 $131,600 6
Panama City 221 156 42 $137,200 $113,600 21
Pensacola 587 400 47 $114,400 $107,700 6
Punta Gorda (2) N/A N/A N/A N/A N/A N/A
Sarasota-Bradenton 930 755 23 $184,600 $161,900 14
Tallahassee 356 272 31 $135,300 $135,500 --
Tampa-St. Petersburg-
Clearwater (3) 3,533 3,123 13 $138,600 $128,300 8
West Palm Beach-
Boca Raton 1,306 1,441 -9 $224,300 $196,700 14
(1) Data for Marco Island was not available.
(2) Historical data for Punta Gorda was not available.
(3) Data for Hernando County 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
