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Marla Martin, Communications Manager
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Florida Home Sales Up 7 Percent in First Quarter 2005

ORLANDO, Fla., May 12, 2005 -- Sales of single-family existing homes in Florida continued to climb during the first three months of this year, while heavy demand pushed up the statewide median sales price. Statewide, resales activity increased 7 percent in the first quarter of 2005, according to the Florida Association of Realtors® (FAR). Overall, a total of 57,699 homes changed hands during January, February and March, compared to 53,971 homes sold a year ago. 

Following a three-month trend, the statewide median sales price once again topped $200,000, rising 27 percent to $207,000 in the first quarter; a year ago, it was $163,600. In 2000, the first-quarter statewide median sales price was $109,600, which is an increase of about 88.9 percent over the five-year period. 

The latest economic outlook from the National Association of Realtors® (NAR) notes that mortgage interest rates have been ticking up less than expected, a pattern predicted to continue through next year and to support strong levels of home sales. Higher oil prices are having a dampening effect on economic growth, according to NAR analysts, who also forecast that the 30-year fixed-rate mortgage will rise gradually to 6.4 percent in the fourth quarter of 2005. 

Realtors across the Sunshine State report that low mortgage rates continued to attract buyers in the first quarter, boosting resales numbers for the three-month period. According to Freddie Mac, the national average commitment rate for a 30-year conventional fixed-rate mortgage was 5.76 percent in first quarter 2005; last year, it was 5.60 percent.

Among the state’s larger markets, the Fort Myers-Cape Coral metropolitan statistical area (MSA) reported a dramatic 33 percent gain in home sales for the quarter with 3,024 homes sold compared to 2,272 homes sold a year ago. The market’s median sales price increased 37 percent to $236,000; a year ago, it was $171,800. 

Scott Whitlock, president of the Cape Coral Association of Realtors and a Realtor sales associate with Premier Realty of Southwest Florida Inc. in Cape Coral says buyers are realizing what the Cape Coral area has to offer. “We have great weather with milder winters than North and Central Florida, we're next to some of the most beautiful beaches in the state and the area offers less congestion and traffic than other places in South Florida,” he says. “The bottom line is that we've been discovered -- baby boomers who are anticipating retirement are buying second homes here and people are moving here from other parts of the state, especially from the south.” 

Other larger Florida markets reporting a boost in resales activity for the quarter compared to first quarter 2004 include: Tampa-St. Petersburg-Clearwater, where 11,740 homes changed hands for a 16 percent increase; and Jacksonville, where 3,870 homes sold for a 13 percent gain. The median home price also rose in those markets over the same period: in Tampa-St. Petersburg-Clearwater, 23 percent to $176,400; and in Jacksonville, 22 percent to $173,400. 

Among the state’s small to medium-size markets, the Pensacola MSA posted a 26 percent increase in resales for the quarter, with 1,477 homes changing hands compared to 1,173 homes sold a year ago. Over the same period, the market’s median home price rose 18 percent to $143,800; a year ago, it was $121,500. 

A strong sense of community and friendly way of living are part of what attracts people to Pensacola, says Nan Harper, president of the Pensacola Association of Realtors and Realtor/co-owner of Harper-Pinzino Island Realty in Pensacola Beach. “For example, the Downtown Improvement Board is looking at ways to provide for new, improved and affordable housing that includes workforce housing for our teachers, firefighters, police officers and families,” she says. “With the tremendous devastation that the Pensacola area sustained from Hurricane Ivan, we are rebuilding. Our Realtor association's theme this year is 'Rebuilding the Florida Family,' and community volunteers are working together to make that happen.” 

Other smaller markets reporting strong gains in existing-home sales in the first quarter of 2005 include: Gainesville, where 840 homes sold for a 38 percent jump; and Fort Walton Beach, where 1,218 homes sold for a 19 percent increase. The median sales price also rose in those markets: in Fort Walton Beach, 29 percent to $220,300; and in Gainesville, 8 percent to $160,000. 

A chart showing statistics for Florida and its MSAs is available by clicking here. The chart compares the volume of existing, single-family home sales and median sales prices in the first quarter of 2005 to the first quarter of 2004, based on Realtor transactions.

The Florida Association of Realtors, the voice for real estate in Florida, provides programs, services, continuing education, research and legislative representation to its more than 125,000 members in 70 boards/associations.

© 2005 FLORIDA ASSOCIATION OF REALTORS