Housing Bubble

Florida home sales rise 5 percent in April

March 25, 2003

ORLANDO, Fla., May 27 /PRNewswire/ -- Buyers continued to boost Florida home sales to new heights in April, increasing 5 percent last month to a total of 17,062 existing single-family homes sold statewide compared to 16,270 homes a year ago, according to the Florida Association of Realtors (FAR).

Statewide, the median cost of a resale home in Florida rose 11 percent to reach $151,900; it was $136,700 in April 2002. The median is a typical market price where half the homes sold for more, half sold for less. In 1998, the statewide median sales price was $97,900, resulting in a 55.1 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 $163,100 in March, up 6.5 percent from the previous March when it was $153,200. In California, the statewide median resales price was $352,780 in March; in Virginia, it was $177,021; in Illinois, it was $163,663; and in Ohio, it was $141,826.

Historically low mortgage rates continued to spark buyer demand and Realtors around the state report that their inventory of homes for sale remains tight, with more buyers than sellers entering many markets.

The interest rate for a 30-year fixed-rate mortgage in April averaged 5.81 percent compared to 6.99 percent during the same month 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 Tampa-St. Petersburg-Clearwater metropolitan statistical area (MSA) reported the most home sales for the month, with a total of 3,206 homes changing hands for a 10 percent increase over the 2,904 homes sold in April 2002. The market's median home price rose 8 percent to $132,900; a year ago, it was $122,600.

Walt Smyth, president of the Pinellas Suncoast Association of Realtors and manager for commercial/investment for Premier Group Realty Inc., credits continued low interest rates for the area's strong resales activity.

"The very low mortgage rates are attracting first-time homebuyers and move-up buyers," he says. "People who are now renting apartments can put themselves into a house at a comparable rate to what they are paying in rent. And the Tampa-St. Pete-Clearwater area is a great place for people to relocate to for jobs and for the lifestyle we offer."

Other large to medium-sized Florida MSAs with robust sales last month compared to a year ago include: Orlando, where 2,613 homes sold for a 7 percent increase; and Daytona Beach, where 966 homes changed hands for a 24 percent gain. The median sales price in those markets also rose over the same period: in Daytona Beach, 15 percent to $126,900; and in Orlando, 10 percent to $136,400.

Of the state's smaller markets, Tallahassee posted a double-digit increase in home sales in April, with a total of 284 homes changing hands for a 22 percent gain over the 232 homes sold last year. The area's median sales price rose 6 percent to $133,000; a year ago, it was $125,800.

Kevin Hattaway, president of the Tallahassee Board of Realtors and a salesperson with Linda Dix Realty, says the stability and growth of the city's higher-level educational system is helping to fuel the Tallahassee economy and housing market. "The universities and our community college are continuing to expand and to hire new professors and staff," he says. "We have a growing healthcare industry, too, which city officials are targeting for incentive and expansion efforts."

Other smaller MSAs reporting solid gains in home sales last month include: Gainesville, where 261 homes sold for a 52 percent gain; and Lakeland-Winter Haven, where 496 homes sold for a 12 percent gain. The median sales price in those markets also rose: in Gainesville, 23 percent to $146,300; and in Lakeland-Winter Haven, 4 percent to $89,200.

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.

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 following chart compares the volume of existing, single-family home sales and median sales prices in April 2003 to April 2002, based on Realtor transactions.

                    Florida Sales Report - April 2003
                      Single-Family, Existing Homes

  Statewide &
  Metropolitan       April     April      %      April       April      %
  Statistical         2003      2002   Chge       2003        2002   Chge
  Areas (MSAs)

  STATEWIDE         17,062    16,270     5%   $151,900    $136,700    11%
  Daytona Beach        966       777     24   $126,900    $110,200     15
  Fort Lauderdale    1,262     1,280     -1   $217,100    $189,100     15
  Fort Myers-
   Cape Coral (1)      806       685     18   $150,900    $129,500     17
  Fort Pierce-
   Port St. Lucie      446       483     -8   $148,000    $126,600     17
  Fort Walton Beach    310       279     11   $140,000    $143,100     -2
  Gainesville          261       172     52   $146,300    $118,500     23
  Jacksonville       1,161     1,344    -14   $134,300    $122,300     10
  Lakeland-Winter
   Haven               496       443     12    $89,200     $86,000      4
  Melbourne-
   Titusville-
   Palm Bay            597       536     11   $128,900    $109,300     18
  Miami              1,058     1,207    -12   $211,000    $175,400     20
  Naples (2)           365       344      6   $299,300    $281,000      7
  Ocala (3)            N/A       N/A    N/A        N/A         N/A    N/A
  Orlando            2,613     2,451      7   $136,400    $124,400     10
  Panama City          170       159      7   $140,000    $125,700     11
  Pensacola            392       347     13   $112,000    $104,600      7
  Punta Gorda (4)      N/A       N/A    N/A        N/A         N/A    N/A
  Sarasota-Bradenton   808       674     20   $189,500    $152,400     24
  Tallahassee          284       232     22   $133,000    $125,800      6
  Tampa-
   St. Petersburg-
   Clearwater        3,206     2,904     10   $132,900    $122,600      8
  West Palm Beach-
   Boca Raton        1,222     1,390    -12   $221,900    $192,000     16

  (1) Data for Sanibel and Captiva was not available.
  (2) Data for Marco Island was not available.
  (3) Ocala data was not available.
  (4) Historical data for Punta Gorda was not available.

Source: Florida Association of Realtors