Florida Association of Realtors Article

The FAR article quotes a NAR (National Assoc. of Realtors) article.

Richard Newquist - Live At The Beach.net
NAR: First quarter metro home prices, state sales show stabilizationFlorida’s housing market for 1Q 2007: Sales soft, median price down

ORLANDO, Fla. – May 15, 2007 – In first quarter 2007, Florida’s housing sector continued to mirror the national pattern, with higher inventory levels of homes for sale, median prices edging down and soft sales reflecting a buyer’s market in many areas.

Statewide, sales of single-family existing homes totaled 33,748 during the three-month period, a decrease of 26 percent compared to 45,844 homes sold during the same time a year earlier, according to the Florida Association of Realtors® (FAR).

The statewide existing-home median sales price was $237,000 in the first quarter; a year ago, it was $243,500 for a decrease of 3 percent. In 2002, the first-quarter statewide median sales price was $129,600, which reflects an increase of about 82.9 percent over the five-year period. The median is a typical market price where half the homes sold for more, half for less.

To gain insight into current trends in Florida’s real estate industry, the University of Florida’s Bergstrom Center for Real Estate Studies conducts a quarterly survey of industry executives, market research economists, real estate scholars and other experts. The first quarter 2007 survey, released in March, found that a growing number of respondents believe that home prices are staying even with inflation, said Wayne Archer, the center’s director.

“We see that as a benchmark,” he said. “When prices maintain the same level as inflation, then we’re probably in some kind of equilibrium. It indicates the market is stabilizing.”

It appears that residential development may have bottomed out, according to the study. Given the scale of the residential development market, Archer noted this would be good news for all real estate markets and for Florida in general.

Continuing low mortgage rates remain another positive influence on the housing sector. According to Freddie Mac, the national commitment rate for a 30-year conventional fixed-rate mortgage averaged 6.22 percent in first quarter 2007; one year earlier, it averaged 6.24 percent.

The latest industry outlook from the National Association of Realtors® (NAR) predicts that stricter lending standards and a decline in subprime mortgage originations will have an impact on existing home sales this year. “Home buyers today are purchasing for the long term, generally with a realistic expectation of modest gains over time,” says NAR Senior Economist Lawrence Yun. “We see this as a soft landing with home sales rising gradually in the second half of the year and prices recovering a bit later.”

Looking to Florida’s existing condominium market, sales of existing condos also decreased during the quarter, with a total of 10,537 condos sold statewide compared to 15,031 in first quarter 2006 for a 30 percent decline, according to FAR. The statewide median sales price for condos remained flat at $210,800 for the three-month period; a year ago, it was $209,900.

Among the state’s larger markets, the Jacksonville metropolitan statistical area (MSA) reported 3,373 existing homes sold for the quarter, a decrease of 14 percent compared to the 3,903 homes sold a year earlier. The market’s existing-home median sales price increased 1 percent to $199,500; a year earlier, it was $197,100. A total of 385 existing condos sold in the market over the three-month period, down 23 percent from first quarter 2006, while the existing-condo median price decreased 7 percent to $152,300.

The Gainesville MSA, one of the smaller markets in the state, reported that 562 homes changed hands in the first quarter, down 23 percent compared to 729 homes sold a year earlier. Over the same period, the market’s existing-home median home price rose 3 percent to $217,100; a year earlier, it was $211,100. A total of 143 existing condos sold in the Gainesville area during the first quarter, a decrease of 40 percent from the previous year, while the existing-condo median price rose 8 percent to $166,800.

© 2007 FLORIDA ASSOCIATION OF REALTORS

Related Topics: Home sales
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