Sky News

Florida Real Estate - Existing Home Sales Remain Level in July 2008

August 27, 2008-Single-family existing home sales rose in Florida for the first time in more than two years: While only six more homes sold in July 2008 than in July 2007, it could indicate stabilization in Florida’s housing sector, according to the latest housing statistics released by the Florida Association of Realtors(R) (FAR).

A total of 11,498 existing homes sold statewide last month while 11,492 homes sold in July 2007, maintaining the same level of sales activity in the year-to-year comparison, according to FAR. The last time statewide sales of existing homes outpaced the previous year’s sales figure was in the year-end 2005 report, according to FAR records, when sales were up 2% over year-end 2004.

Florida’s median sales price for existing homes last month was $193,600; a year ago, it was $238,900 for a 19% decrease. But, looking back to July 2003, the statewide median sales price for single-family homes has increased 18% over the five-year-period, according to FAR records - at that time, the statewide existing-home median price was $164,000. The median is the midpoint; half the homes sold for more, half for less.

The national median sales price for existing single-family homes in June 2008 was $213,800, down 6.7% from a year earlier, according to NAR. In California, the statewide median resales price was $368,250 in June; in Massachusetts, it was $334,900; in Maryland, it was $306,083; and in New York, it was $219,000.

Industry analysts predict that the housing stimulus bill recently passed by Congress should help boost the housing sector’s recovery. Existing home sales nationwide are expected to show some modest improvement in the coming months, according to the latest housing outlook from the National Association of Realtors(R) (NAR). “With a tax credit now available to first-time home buyers, increases in home sales could be sustained with the momentum carrying into 2009,” says NAR Chief Economist Lawrence Yun.

In a year-to-year comparison for condos, 3,375 units sold statewide compared to 3,641 in July 2007 for a 7% decline. The statewide existing-condo median sales price last month was $168,500; in July 2007 it was $194,100 for a 13% decrease. NAR reported the national median existing condo price was $224,200 in June 2008.

Last month, interest rates for a 30-year fixed-rate mortgage averaged 6.43%, down from the average rate of 6.70% in July 2007, according to Freddie Mac. FAR’s sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

More than half of Florida’s metropolitan statistical areas (MSAs) reported increased sales of existing homes in July; seven MSAs also showed gains in condo sales. Realtors around the state reported increased business activity, including more telephone calls, more home showings and a rise in pending sales.

Among the state’s large to medium-size markets, the West Palm-Boca Raton MSA reported a total of 652 homes sold in July compared to 605 homes a year ago for an 8% increase. The existing home median sales price was $291,300; a year ago, it was $372,200 for a 22% decrease. A total of 510 existing condos sold in the MSA last month compared to 440 condos the previous July for a 16% increase. The market’s existing condo median price was $152,300; a year ago, it was $178,200 for a 15% decrease.

Have We Reached The Bottom? Is Now The Time To Buy Real Estate in Fort Lauderdale?

I received a call from one of our agents yesterday and he said, “If one more person asks me how is the real estate market………..”

It is very easy to get caught up in all the negative press we hear everyday about our local market conditions. Sellers are constantly reminded that their properties are still priced too high for today’s market and buyers are told to wait and see.

Recent sales at Sky show us that in this buyer’s market homes that are selling are priced right, they are in excellent condition and the sellers are educated, willing to negotiate and often offer buyer concessions.

Single family homes continue to out pace condominiums in our office and our clients are mainly from out of state (Louisiana, Massachusetts and Texas). We also have local buyers who are purchasing bargain deals.

So have we reached the bottom? I really don’t know since our foreclosures continue to affect prices and unrealistic sellers are leaving the market. I do know that we live in a beautiful part of the country and are the envy of many who wish they could enjoy our weather and beaches.

If you are considering buying or selling a home now or in the near future, give us a call. One of our professional agents will sit down with you are bring you up to speed regarding our local market. We will discuss what you are looking for in a home, the area you prefer and your price range. Prior to leaving our office, we can show you every home that is for sale that meets your criteria. So when you are ready to buy or sell, give us a call.

Sky Properties International, LLC – professional service has no limits!