Orlando, FL, June 28--The recovering economy, high demand and still low -- but rising -- mortgage rates pushed sales of existing single- family homes in Florida to a statewide total of 23,107 in May, 19 percent higher than last year's level of 19,457 homes sold statewide, according to the Florida Association of Realtors(R) (FAR).
The statewide median sales price climbed 20 percent to $181,300; a year ago, it was $151,400. In May 1999, the statewide median sales price was $102,000, resulting in a dramatic increase of more than 77 percent over the five-year period, according to FAR records.
Florida's median sales price is only slightly above April's national median sales price for existing single-family homes, which was $176,000, up 7.3 percent from the previous April when it was $164,100. In California, the statewide median resales price was $453,590 in April; in Maryland, it was $223,408; in New York, it was $220,000; in North Carolina, the average resales price was $192,526; and in Illinois, the median price was $178,500.
Rising interest rates, a low supply of existing homes for sale and increasing home values spurred 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 6.27 percent last month, up from 5.48 percent in May 2003. 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 4,330 homes changing hands, a 23 percent increase over the 3,533 homes sold in May 2003. The market's median sales price rose 13 percent to $156,800; a year ago, it was $138,600.
Tight inventory, mortgage rates and a high quality of life are fueling the Tampa Bay's housing market, says Alma James Alexander, president of the Greater Tampa Association of Realtors and a broker-sales associate with Coldwell Banker Residential in Tampa. "There is a huge influx of people and a shortage of properties to meet the demand for homes," she says. "With interest rates still low but increasing, it's certainly driving the market because it's prompting more people to buy. And people come here to enjoy the diversity of living -- all the different things that you can do and enjoy in the Tampa Bay area, including education and cultural activities, our local sports teams and our beautiful beaches, Tampa Bay, our rivers and lakes."
Other larger Florida MSAs reporting higher home sales in May include: Orlando, where 3,495 homes sold for a 27 percent gain; and Jacksonville, where 1,527 homes changed hands, also for a 27 percent increase. The median sales price in those markets also rose last month: in Jacksonville, 22 percent to $161,800; and in Orlando, 16 percent to $162,000.
Among the smaller markets across the state, Fort Pierce-Port St. Lucie reported a strong double-digit increase in the percentage of resales last month with 647 homes changing hands for a 27 percent increase over the 510 homes sold a year ago. The market's median sales price jumped 31 percent to $187,800; a year ago it was $142,900.
"We're getting a steady stream of people moving to St. Lucie County from South Florida, which is helping to push home sales," says Carmen Pappa, president of the St. Lucie Association of Realtors and a broker-sales associate with Coldwell Banker Residential Inc. in Port St. Lucie. "Plus, we're also seeing a lot of people investing in homes and some fairly quick turnovers in property."
Other smaller MSAs reporting strong sales in May include: Ocala, where 530 homes sold for a 24 percent increase; and Lakeland-Winter Haven, where 554 homes changed hands for a 23 percent rise. The median sales price also rose in those markets during the same period: in Ocala, 29 percent to $108,800; and in Lakeland-Winter Haven, 27 percent to $113,200.
