Florida Median Price Rises 29 Percent in Second Quarter 2005

RISMEDIA, August 16 – Sales of single-family existing homes in Florida rose 4 percent in second quarter 2005 compared to the same time last year, according to the Florida Association of Realtors (FAR).

Statewide, a total of 74,317 homes changed hands during the three-month period; in second quarter 2004, a total of 71,724 homes sold.

The statewide median sales price for the second quarter rose 29 percent to $233,600; a year ago, it was $180,700, according to FAR. In June, the national median price of an existing single-family home was $218,600, up 14.5 percent from a year ago. The median is a typical market price where half of the units sold for more and half sold for less.

Continued low mortgage rates encouraged would-be buyers to make decisions quickly and helped boost demand. While still tight, inventory levels of homes available for sale in many markets appear to be on the rise, reported Realtors across the state.

Interest rates for a 30-year, fixed-rate mortgage averaged 5.72 percent during the second quarter, a notable drop from the 6.13 percent average reported during the second quarter of 2004.

Among the state's larger markets, the Miami metropolitan statistical area (MSA) had a total of 3,721 homes sold during second quarter 2005 compared to 3,702 homes during the same period a year ago for a 1 percent increase. The median sales price rose 29 percent to $351,000; a year ago, it was $271,900.

Jay Chernoff, chairman of the Realtor Association of Greater Miami and the Beaches and district sales manager with Keyes Company Realtors in Aventura, notes that the strong business economy in the Miami area is a major influence on home sales. "Our location also draws buyers," he says. "With Fort Lauderdale nearby, there are two seaports and two major airports very close together in this area, which makes it very attractive."

Also reporting robust sales among the state's larger markets during the second quarter compared to the same time last year were: Tampa-St. Petersburg- Clearwater, where 15,817 homes changed hands for a 24 percent gain; and Jacksonville , where 5,022 homes sold for a 6 percent increase.

The median sales price also rose in those markets compared to a year ago: in Tampa-St. Petersburg-Clearwater, 27 percent to $195,300; and in Jacksonville , 14 percent to $187,300.

Tallahassee , one of the state's smaller markets, reported a double-digit increase in existing home sales during the second quarter, with a total of 1,480 homes sold compared to 1,244 homes a year ago for a 19 percent gain. The median sales price of those homes rose 9 percent to $163,300; a year ago, it was $150,200.

Buyers want to take advantage of the still-low mortgage rates, says Mike Ferrie, president of the Tallahassee Board of Realtors and sales associate with Blue Chip Realty Inc. in Tallahassee . "The Tallahassee area has a lot to offer," he says. "Our economy tends to be stable with a strong growth potential for jobs from our universities, community college, state government and hospitals."

Other smaller markets showing strong resales activity during the second quarter of this year compared to a year ago include: Gainesville, where 1,297 homes sold for a 26 percent boost; and Ocala , where 1,743 homes changed hands for a 9 percent gain. The median sales price also rose in those markets: in Ocala , 21 percent to $135,600; and in Gainesville , 7 percent to $176,400.