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Home Price Appreciation
Florida Home Sales Break 200,000 units; 2003 Ends with a 13 Percent Increase, Says Florida Association of Realtors ORLANDO, Fla., Jan. 26 /PRNewswire-FirstCall/ -- Throughout 2003, the housing sector propelled Florida's economy into its current upswing and made the year one for the record books in terms of sales volume and median price, both statewide and nationally. By year's end, Florida reported a 13 percent gain in the number of existing single-family homes sold and broke the 200,000 mark for annual sales, according to the Florida Association of Realtors(R) (FAR). In total, 203,243 homes changed hands last year compared to 179,631 homes sold the year before. And the prices of those homes keep rising. Statewide, the median sales price rose 12 percent to reach $158,400; a year ago, it was $141,700. In 1998, Florida's median sales price was $101,600, for a 55.9 percent jump over the five-year period. Russell Grooms, 2004 president of FAR and a Broker with Watson Realty Corp. in Jacksonville, says the 2003 home sales statistics demonstrate the phenomenal growth and continued strength of Florida's real estate industry. "The state's growth drives the robust housing market," he says. "And that won't change. Florida is expected to grow steadily in the years ahead. The state's population is predicted to increase by nearly 2.25 million people to reach almost 19 million by the year 2010, according to researchers at the University of Florida. Interest rates also are a major factor; while mortgage rates ticked up on occasion, they usually hovered around a favorable 6 percent for most of the year. In fact, the annual average for the 30-year fixed-rate mortgage rate last year was 5.83 percent. Demand for homes remained at a record pace in markets across Florida, resulting in tight inventory in many areas and impacting home prices." Many housing industry insiders forecast the housing sector will see another near record year in 2004, with the nation's economic recovery gaining momentum and mortgage rates expected to remain lower than 6.75 percent. Realtors predict another banner year for home sales in Florida. With low mortgage rates and strong appreciation values, Grooms says it's a great time to buy Florida real estate. "Being involved in real estate, which is the driving force of the booming state's economy,is a responsibility that fills all Florida Realtors with pride," he says. Last year's average of 5.83 percent for a 30-year, fixed-rate mortgage was a significant decline from the 6.54 percent average for 2002. FAR's sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written. Among the state's larger metropolitan statistical areas (MSAs), Orlando reported double-digit gains in number of sales and median sales price in 2003 compared to the previous year. With a total of 30,343 homes sold last year, the figure was 15 percent higher than the area's 2002 sales activity, when 26,338 homes changed hands. The median sales price rose 11 percent to $144,200; the year before, it was $130,300. Looking ahead to 2004, Greg Rokeh, president of the Orlando Regional Realtor Association and REO specialist with Watson Realty Corp. in Longwood, says buyers' demand for homes will remain strong, but continued tight inventory could constrict the area's market in the coming year. Other large Florida MSAs reporting higher sales in 2003 compared to a year ago include: Tampa-St. Petersburg-Clearwater, where 30,544 homes changed hands for an 18 percent increase; and West Palm Beach-Boca Raton, where 15,417 homes sold for a 4 percent gain. The median sales price also rose in those markets last year: in West Palm Beach-Boca Raton, 24 percent to $241,300; and in Tampa-St. Petersburg-Clearwater, 8 percent to $143,700. In the smaller markets, the Fort Walton Beach MSA reported 4,068 homes changed hands during last year, a 23 percent gain over the 3,312 homes sold the previous year. The median sales price rose 9 percent to $151,900; the year before, it was $139,600. "The major factors fueling our market are the military and tourism and resort properties," says Roland Guidry, president of the Emerald Coast Association of Realtors and a Realtor with the Pat Guidry Agency in Destin. "The biggest economic impact on the area is the military, with Eglin Air Force base and Hurlburt Field." Among the state's smaller markets, others reporting increases in home resales for 2003 compared to the previous year include: Panama City, where 2,332 homes sold for a 24 percent boost; and Melbourne-Titusville-Palm Bay, where 7,565 homes changed hands for a 20 percent increase. The markets' median sales price also rose last year: in Panama City, 15 percent to $140,700; and in Melbourne-Titusville-Palm Bay, 15 percent to $133,400. A chart showing statistics for Florida and its 20 MSAs follows. The chart compares the number of existing, single-family home sales and median sales prices, based on Realtor transactions during 2003 and 2002. The median sales price is the midpoint in the price range - half the homes sold for more, half sold for less. The Florida Association of Realtors, the voice for real estate in Florida, provides programs, services, continuing education, research and legislative representation to its 100,000 members in 70 boards/associations.
This information is based on a survey of MLS sales levels from Florida's Realtor boards/associations. MSAs are defined by the 2000 Census. Source: Florida Association of Realtors and the University of Florida Real Estate Research Center. Florida Association of Realtors
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