Home sales in Florida continued their gradual, yet determined rise in May, creeping up 3 percent from a year ago as median prices remained soft due to the continued sales of distressed properties, Florida Realtors reported Tuesday.
Marking the sixth month of statewide year-over-year sales increases, existing homes increased in 12 of 19 metropolitan areas tracked by the Realtors association, a trend industry leaders hope to continue with interest rates expected to remain favorable over the next several months. The trick is qualifying for the loan in the first place.
With low mortgage rates and a broad inventory of homes at affordable prices, qualified buyers are realizing that there may never be a better time to find the home theyve been dreaming of in Florida, said Florida Realtors President Patricia Fitzgerald, manager/broker-associate with Illustrated Properties in Hobe Sound and Mariner Sands Country Club in Stuart.
The median price of a Florida home fell 5 percent in May from a year earlier. The median price of a home last month was $135,500.
Condominium sales, meanwhile, jumped 17 percent in May from a year ago despite an uptick in price. The median price of a condominium sold in May was $98,200 up 2 percent from a year ago. Prices, however, climbed 6.9 percent from April, a monthly increase that may indicate a smaller percentage of distressed sales.
Nationally, home sales were down 15.3 percent in May, according to the National Association of Realtors. Sales in the South were off 14.4 percent. Median home sales prices fell 4.6 percent to $166,500 while median sales prices in the South dropped 3.1 percent to $149,200. The NARs chief economist attributed the dip to a reaction to oil prices, which spiked in April and led to fewer closings in May.
Current housing market activity indicates a very slow pace of broader economic activity, but recent reversals in oil prices are likely to mitigate the impact going forward, chief economist Lawrence Yun said. The pace of sales activity in the second half of the year is expected to be stronger than the first half, and will be much stronger than the second half of last year.
In Florida, Miami boasted a 20 percent increase in home sales year-to-year. The West Palm Beach area did even better with a 26-percent boost in May from a year ago. Median sales prices in those areas fell 9 percent and 8 percent respectively.
Other strong Florida home markets included Ocala ( up 10 percent) and Gainesville ( up 12 percent.)
A handful of markets did not fare as well. Sales in Lakeland-Winter Haven were off 11 percent while sales in Orlando and Tampa/St. Petersburg markets fell 5 percent and 6 percent respectively. Tallahassee home sales were off by 2 percent.
It looked in May like Southwest Florida may finally have seen the bottom of the home bust with an enormous jump in price there one of only a few places where the median sale price actually went up.
Home prices rose in Fort Myers by 19 percent to $114,900, outpacing Fort Walton Beach (up 5 percent to $197,300) and Pensacola (up 1 percent to $136,700.) All other markets showed lower median sales prices in May.
Condominium sales were more robust. Sales in Miami were up 46 percent. Panhandle sales were also noticeably higher, with condo sales in Pensacola jumping 62 percent and Panama City sales increasing by 81 percent. Condo sales in Fort Walton Beach were up 57 percent.
Nationally, sales have been hampered by continued cautious credit markets, which are demanding higher down payments and more stringent credit requirements from borrowers looking to buy.
We dont need to throw the baby out with the bath water increasing down payment requirements would effectively shut many qualified families out of the market, NAR President Ron Phipps said in a statement What we critically need is a return to the basics of providing safe mortgages to creditworthy buyers willing to stay well within their budget.
