Florida's existing home sales remain slow

The mortgage credit crunch and a sluggish economy continued to affect the sales pace of existing homes and condominiums in Florida in January. Statewide, sales of existing single-family homes totaled 6,737 last month while 9,360 homes sold in January 2007 for a decrease of 28 percent in the yearto year comparison, according to the Florida Association of Realtors.

But some industry analysts expect sales activity to improve by the second half of the year, especially if the increased loan limit caps within the federal government's economic stimulus package can be implemented quickly. In the latest market outlook from the National Association of Realtors, Chief Economist Lawrence Yun says, "Existing-home sales have moved narrowly since last September, but when the full impact of higher loan limits for conventional mortgages begins to hit the market, there is likely to be a notable rise in home sales and prices. If higher limits are enacted very quickly, we'll see a faster and more meaningful recovery by expanding safe, affordable financing in high-cost areas - that, in turn, would help to stimulate overall economic activity."

Florida's median sales price for existing single-family homes last month was $208,600; a year ago, it was $242,700 for a 14 percent decrease. The median is the midpoint; half the homes sold for more, half for less. In January 2003, the statewide median sales price for singlefamily homes was $142,900, an increase of about 46 percent over the five-yearperiod, according to FAR records.

The national median sales price for existing single-family homes in December 2007 was $206,500, down 6.5 percent from a year earlier, according to NAR. In California, the statewide median resales price was $475,460 in December; in Massachusetts, it was $323,000; in Maryland, it was $291,622; and in New York, it was $222,646.

Sales of existing condominiums in Florida also decreased last month, with a total of 2,252 condos sold statewide compared to 3,227 in January 2007 for a 30 percent decline, according to FAR. The statewide median sales price for condos last month was $190,200, down 11 percent from January 2007's condo median price of $213,900. NAR reported the national median existing condo price was $222,200 in December 2007.

Last month, interest rates for a 30-year fixed-rate mortgage averaged 5.76 percent, down from the average rate of 6.22 percent in January 2007, according to Freddie Mac. FAR's sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

- PRNewswire