Florida existing home sales in October shot up 13 percent from a year ago as the median price fell, according to figures released Monday by Florida Realtors.
Buoyed by lower interest rates and improved consumer confidence, sales increased in 17 of 19 metropolitan areas across the state, the association's chief economist reported Friday. Median prices were off about 4 percent statewide, falling to $131,200 from $136,600 a year ago.
Florida condominium sales were also strong for the month, with sales increasing 12 percent and the median price climbing 7 percent from October 2010 figures.
"These numbers, combined with reports from Realtors throughout the state, indicate that we're seeing strong interest in purchasing Florida real estate from smart investors who are taking advantage of the current favorable market conditions," said John Tuccillo, Florida Realtors lead economist. "These folks tend to have a long-term outlook and plan to hold onto their property purchases for a while."
Florida's performance mirrored national trends, which saw sales increase 13.5 percent for the month while median prices fell 4.7 percent from October 2010, according to the National Association of Realtors. One encouraging sign was that the percentage of distressed homes sold fell to 28 percent last month, a 2 percent drop from a year earlier.
Sales in the South increased 2.1 percent from September and were 14.1 percent above a year ago, NAR reported.The median price in the South was $145,700, down 1.6 percent from October 2010.
Despite the improved sales, tighter credit requirements are holding back many buyers, NAR reported. The number of cancelled contracts in October was more than four times higher thana year ago, with one in three contracts being cancelled during the month.
"Home sales have been stuck in a narrow range despite several improving factors that generally lead to higher home sales, such as job creation, rising rents and high affordability conditions," said NAR chief economist Lawrence Yun, in a statement. "Many people who are attempting to buy homes are thwarted in the process."
Home sales in Miami jumped 41 percent, fueled in part by a 13 percent decrease in median price, which fell to $174,600. West Palm Beach showed sales gains of 27 percent. Other strong markets were Gainesville and Sarasota/Bradenton, which each experiencing year-to-year sales increases of 20 percent.
There were a couple of drops.
Home sales were off 10 percent in Tallahassee, while median prices slipped 1 percent to $160,000. Sales in the Fort Myers/Cape Coral area fell 6 percent, while the median price jumped 15 percent in a region that has taken a pounding because of overbuilding.
Freddie Mac reports that the interest rate for a 30-year fixed-rate mortgage averaged 4.07 percent in October, down from the 4.23 percent average during the same month a year earlier.
"The latest unemployment figures indicate that Florida's jobs outlook is improving, mortgage rates remain at historical lows and buyers are able to consider a variety of housing options at affordable prices in communities across the state," said 2011 Florida Realtors President Patricia Fitzgerald.
