Media Center - Florida Realtors®

Marla Martin, Communications Manager, or Jeff Zipper, Vice President of Communications 407/438-1400, ext. 2326 or 2314

Editor’s Note: You may wish to use this information withtoday’s release from the National Association of Realtors

Florida's Housing Market for 4Q 2006: Sales Down, Median Price Stabilizing

ORLANDO, Fla., Feb. 15, 2007 – Florida's housing sector continued to mirror the national trend in fourth quarter 2006, reflecting slower sales, stabilizing median prices and higher inventory levels of homes available for sale in many markets.

Statewide, sales of single-family existing homes totaled 37,177 during the three-month period, a decrease of 28 percent compared to 51,310 homes sold during the same time a year earlier, according to the Florida Association of Realtors® (FAR). Traditionally, home sales often ease during the fourth quarter as a result of holidays, cooler weather and other influences.

The statewide existing-home median sales price remained stable at $242,100 in the fourth quarter; a year ago, it was $245,600 for a slight 1 percent decrease. In 2001, the fourth-quarter statewide median sales price was $128,400, which reflects an increase of 88.5 percent over the five-year period. The median is a typical market price where half the homes sold for more, half for less.

To gain insight into current trends in Florida’s real estate industry, the University of Florida’s Center for Real Estate Studies conducts a quarterly survey of industry executives, market research economists, real estate scholars and other experts. While acknowledging the adjusting housing market, the fourth quarterly survey results found no evidence of home prices overall dropping long-term statewide.

“One important indicator of the real estate market is occupancy rates, and these appear to be stable or increasing in most markets, including apartments, office buildings, retail space, and industrial warehouse and distribution space,” said Dr. Wayne Archer, director of UF’s Bergstrom Center for Real Estate Studies. He noted that the relative health and growth of Florida’s economy provides a strong foundation for the state.

“Employment is very good and the fundamentals that drive rental income and occupancy are still very strong,” he said. “In addition, interest rates have remained perhaps a little more stable than some people expected.” According to Freddie Mac, the national commitment rate for a 30-year conventional fixed-rate mortgage averaged 6.25 percent in fourth quarter 2006; one year earlier, it averaged 6.22 percent.

The latest industry outlook from the National Association of Realtors® (NAR), calls for a steady rise in existing home sales following the fourth quarter. NAR Chief Economist David Lereah says that while “home sales may appear weak in comparison with the record surge in 2005, they will be sustained at historically high levels that are in line with long-term demand.” NAR expects 2006 to finish as the third strongest year for sales after the record years of 2005 and 2004.

Looking to Florida's existing condominium market, sales of existing condos also decreased during the quarter, with a total of 10,596 condos sold statewide compared to 15,425 in fourth quarter 2005 for a 31 percent decline, according to FAR. The statewide median sales price for condos decreased 3 percent to $205,200 for the three-month period; a year ago, it was $212,100.

Among the state’s larger markets, the Miami metropolitan statistical area (MSA) reported 1,828 existing homes sold for the quarter, a decrease of 3 percent compared to the 1,878 homes sold a year earlier. The market’s existing-home median sales price decreased 1 percent to $370,400; a year earlier, it was $375,900. A total of 1,694 existing condos sold in the market over the three-month period, down 28 percent from fourth quarter 2005, while the existing-condo median price increased 1 percent to $266,500.

The Punta Gorda MSA, one of the smaller markets in the state, reported that 663 homes changed hands in the fourth quarter, down 2 percent compared to 674 homes sold a year earlier. Over the same period, the market’s existing-home median home price declined 10 percent to $209,700; a year earlier, it was $233,700. A total of 118 existing condos sold in the market during the fourth quarter, down 28 percent from the previous year, while the existing-condo median price rose 20 percent to $195,000.

Two charts showing statistics for Florida and its MSAs are attached. One chart compares the volume of existing, single-family home sales and median sales prices in the fourth quarter of 2006 to the fourth quarter of 2005, based on Realtor closed transactions from local Realtor boards/associations within the MSAs. The second chart compares the volume of existing condo sales and median sales prices in fourth quarter 2006 to fourth quarter 2005, based on Realtor closed transactions from local Realtor boards/associations within the MSAs.

The Florida Association of Realtors (FAR), the voice for real estate in Florida, provides programs, services, continuing education, research and legislative representation to its more than 165,000 members in 68 boards/associations.

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