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Florida home sales and prices show small gains

December 2005

The pace of Florida's housing market eased somewhat in November -- traditionally a slower month for home sales -- with statewide sales of existing single-family homes totaling 17,219 for a 1 percent increase over last year's sales activity of 17,110 homes, according to the Florida Association of Realtors® (FAR). Housing markets nationwide are starting to see a better balance between demand and supply, according to many housing industry analysts, placing homebuyers and sellers on a more even footing.

The statewide median sales price rose 31 percent in November to $250,500; a year ago, it was $191,300. In November 2000, the statewide median sales price was $117,900, which is an increase of about 112 percent over the five- year period. The median is the midpoint, which is a typical market price where half of the homes sold for more and half for less.

The national median sales price for existing single-family homes was $216,200 in October, up 16.6 percent over last year, according to the National Association of Realtors® (NAR). In California, the statewide median resales price was $538,770 in October; in Maryland, it was $297,682; in New York, it was $269,000; and in North Carolina, the average resales price was $215,762.

Interest rates for a 30-year fixed-rate mortgage averaged 6.33 percent in November, up from the 5.73 percent rate recorded last year. FAR's sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

Among the state's larger metropolitan statistical areas (MSAs), the Tampa- St. Petersburg-Clearwater MSA reported higher figures in both sales and median price last month, with a total of 3,799 existing single-family homes changing hands for a 16 percent increase over the 3,276 homes sold last year. The market's median sales price increased 33 percent to $222,900; a year ago, it was $167,100.

George Bodmer, president of the Greater Tampa Association of Realtors and co-owner of Bayside Realty Group Inc., notes that mortgage rates, while edging up, remained favorable in November, which encouraged buyers to enter the market.

"The real estate market follows the jobs, and this area is basically a community that goes to work," he says. "We've got places to work, places to play, good schools and even with high demand and a tight inventory, we've been fortunate in that we still have homes available to buy. Buyers know housing is a good investment."

Other larger markets reporting higher sales in November include: Jacksonville, where 1,425 homes sold for a 20 percent gain; and Orlando, where 2,656 homes changed hands for a 2 percent increase. The median sales price also rose in both markets: in Orlando, 45 percent to $254,600; and in Jacksonville, 17 percent to $190,000.

Among the state's smaller MSAs, Tallahassee reported a 21 percent increase in home sales last month, with a total of 357 homes sold compared to 296 homes changing hands last year. The area's median sales price rose 12 percent over the same period to $179,800; a year ago, it was $160,600.

"Tallahassee has a lot to offer and buyers are realizing it's a great place to live," says Mike Ferrie, president of the Tallahassee Board of Realtors and sales associate with Blue Chip Realty Inc. "Our economy is strong, with diverse business and employment opportunities. And the forecast for jobs in this area continues to be good for the future as well."

Other smaller MSAs in the state also had higher home resales last month, including: Lakeland-Winter Haven, where 475 homes changed hands for a 17 percent boost; and Gainesville, where 275 homes sold for a 13 percent gain. The median sales price in those markets also rose over the same period: in Lakeland-Winter Haven, 37 percent to $166,900; and in Gainesville, 18 percent to $197,100.

In a separate release Jordyn Taylor Properties, a South Florida Real Estate Broker, said that they are holding firm on an anticipated average commission increase of over 20% in fiscal 2006.

"If there is a bubble it has not made itself apparent in our market," said JTPI President and founder Terrence McManus. "As we begin our review of last year's results (fiscal year end 11/30/05), the Company sees a real need to drive the higher end transactions." Month-over-month results show the Boca Raton-West Palm Beach MSA average sales price in November of a record $421,500 up over 1% from October's $416,500. Fort Lauderdale also clocked an impressive, record breaking average price of $391,100" Real estate commissions are typically driven as a percentage of the value of the transaction, therefore higher housing prices should mean improved revenue for JTPI," concluded McManus.

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 November 2005 to November 2004, based on Realtor transactions.

                   Florida Sales Report - November 2005
                      Single-Family, Existing Homes

                              Realtor Sales          Median Sales Price
        Statewide &
       Metropolitan       November  November  %    November  November    %
     Statistical Areas      2005      2004   Chge    2005      2004     Chge
          (MSAs)

               STATEWIDE   17,219    17,110    1%  $250,500  $191,300    31%
  STATEWIDE-YEAR-TO-DATE  231,060   222,005    4   $234,200  $180,600    30
           Daytona Beach      962       871   10   $220,200  $163,000    35
         Fort Lauderdale      788       997  -21   $391,100  $303,300    29
   Fort Myers-Cape Coral      810       778    4   $295,400  $197,800    49
        Fort Pierce-Port
               St. Lucie      459       472   -3   $261,000  $212,900    23
       Fort Walton Beach      322       393  -18   $241,300  $194,200    24
             Gainesville      275       244   13   $197,100  $167,600    18
            Jacksonville    1,425     1,190   20   $190,000  $162,600    17
   Lakeland-Winter Haven      475       405   17   $166,900  $121,500    37
   Melbourne-Titusville-
                Palm Bay      538       568   -5   $231,400  $178,700    29
                   Miami      699       934  -25   $381,600  $290,800    31
              Naples (1)      333       318    5   $479,800  $349,200    37
                   Ocala      383       440  -13   $163,000  $113,000    44
                 Orlando    2,656     2,600    2   $254,600  $175,400    45
             Panama City      166       170   -2   $230,000  $185,500    24
               Pensacola      503       492    2   $168,000  $138,600    21
             Punta Gorda      245       289  -15   $236,900  $167,700    41
      Sarasota-Bradenton      621     1,010  -39   $343,600  $256,700    34
             Tallahassee      357       296   21   $179,800  $160,600    12
   Tampa-St. Petersburg-
          Clearwater (2)    3,799     3,276   16   $222,900  $167,100    33
        West Palm Beach-
              Boca Raton      952       880    8   $421,500  $343,300    23

(1) Data for Marco Island was not available. (2) Data for Hernando County was not available.

Florida Association of Realtors®

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