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Florida’s August Home Sales Weather Hurricane Charley: Statewide Median Price Gains 15 Percent, Sales Up 3 Percent

ORLANDO, Fla., Sept. 24, 2004 -- The double-whammy of Hurricane Charley and menace of Hurricane Frances impacted Florida’s housing market in August: Closings were delayed when homebuyers were unable to obtain homeowners' insurance, since most insurers do not write policies when a hurricane threatens. Still, the statewide median sales price rose 15 percent last month, while statewide sales of single-family existing homes gained 3 percent, according to the Florida Association of Realtors® (FAR).

Statewide, a total of 20,294 homes changed hands in August 2004 compared to 19,748 homes a year ago. The statewide median sales price rose 15 percent to $189,500; a year ago, it was $164,100. In 1999, the statewide median sales price for single-family existing homes was $106,200, which translates to an increase of about 78.4 percent over the five-year period, according to FAR records.

In markets across the state, the aftermath of Hurricane Charley also created other problems for resales activity as many lenders delayed closings for property re-inspections or repairs. In addition, local Realtor boards/associations, real estate firms and Multiple Listing Services in many areas across Florida were directly affected by the hurricane, which in turn impacted the collection of data for the month.

However, industry analysts expect the state's housing market to bounce back. According to Mike O'Connell, an economist with the South Florida Regional Planning Council, hurricanes can accelerate long-term development trends or economic direction already taking place in a community, but aren't likely to change the market. O'Connell developed a computer model for the state that studies the economic impact of hurricanes on Florida.

Florida’s median sales price compares favorably to the national median sales price for existing single-family homes, which was $191,300 in July, up 8.7 percent from July 2003 when the median price was $176,000. In California, the statewide median resales price was $463,540 in July; in Maryland, the average resales price was $296,896; in New York, the median price was $261,000; in North Carolina, the average price was $201,209; and in Ohio, the average resales price was $157,658.

Interest rates remained at favorable low levels last month, with the 30-year fixed-rate mortgage averaging 5.87 percent; a year ago, it averaged 6.26 percent. 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), Tampa-St. Petersburg-Clearwater reported the most sales last month, with a total of 4,391 homes changing hands compared to 3,907 homes last year for a 12 percent gain. The market's median sales price increased 16 percent to $166,400; a year ago, it was $143,100.

Continued low mortgage rates are encouraging people to buy homes, says Sam Jacobs, president of the West Pasco Board of Realtors and broker of RE/MAX Advantage Realty in Port Richey. “This area is growing, especially in central and east Pasco County,” he says. “There is a lot of new development occurring toward new Tampa and new home construction helps fuel sales of existing homes. Our area also offers housing opportunities that are affordable to many buyers, including a strong first-time buyer market.”

Other larger markets reporting higher sales last month compared to August 2003 include: Jacksonville, where 1,561 homes sold for a 14 percent increase; and Orlando, where 3,141 homes sold for a 5 percent gain. The median sales price also rose in both markets: in Orlando, 14 percent to $174,000; and in Jacksonville, 12 percent to $166,700.

Among the state’s smaller MSAs, the Ocala market reported a 36 percent boost in home sales in August, with 559 homes changing hands compared to 412 homes a year ago. The area's median sales price rose 9 percent to $112,000; a year ago, it was $102,600.

Pat Ketchie, president of the Ocala/Marion County Association of Realtors and broker-owner of Advantage Real Estate Corporation in Salt Springs, cites the area's natural beauty, including the Ocala National Forest and beautiful rolling hills, as a major draw for homebuyers. “The Ocala area offers a lot of benefits to buyers, including a great location geographically that is in the middle of the middle of the state,” she says. “We can easily travel to Jacksonville or to Orlando or to Miami, yet residents are out of the busy hustle and bustle of urban traffic hubs like those cities. Plus, housing here is still very affordable.”

Other smaller MSAs reporting strong resales activity last month include: Fort Walton Beach, where 566 homes sold for a 43 percent increase; and Pensacola, where 619 homes sold for a 27 percent gain. The median sales price in those markets also rose: in Fort Walton Beach, 29 percent to $200,800; and in Pensacola, 3 percent to $128,500.

A chart showing statistics for Florida and its 20 MSAs is available by clicking here. The chart compares the volume of existing, single-family home sales and median sales prices in August 2004 to August 2003, based on Realtor transactions.

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 110,000 members in 70 boards/associations.