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Florida home sales gain 10 percent in first quarter 2003, says Florida Association of Realtors

May 14, 2003

ORLANDO, Fla., -- The demand for resale homes in Florida continues to increase even as the median price of those homes continues to rise. Existing single-family home sales in the state rose 10 percent in the first quarter of 2003, according to the Florida Association of Realtors (FAR). Overall, a total of 38,745 homes changed hands during January, February, and March -- 3,533 more than the 35,212 homes sold a year ago.

Statewide, the median sales price rose 10 percent to $145,600 in the first quarter; a year ago, it was $131,900. In 1998, the first quarter statewide median sales price was $97,000, translating to a 50.1 percent increase over the five-year period. Nationally, the first quarter 2003 median existing-home price was $161,500, according to the National Association of Realtors (NAR).

The increasing demand for second homes and a movement by baby boomers to purchase retirement homes sooner rather than later in part fueled by current historically low interest rates helped to boost 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 a record-low 5.84 percent in first quarter 2003; last year, it was 6.97 percent.

Among the state's larger markets, the Jacksonville metropolitan statistical area (MSA) reported a 15 percent gain in sales activity for the quarter with 3,224 homes changing hands compared to 2,808 homes sold a year ago. The markets median sales price increased 9 percent to $126,300; a year ago, it was $115,500.

The city offers many benefits to buyers, says Selby Kaiser, president of the Northeast Florida Association of Realtors and a broker-salesperson with Prudential Network Realty. "It's easy to get in and out of Jacksonville to go anywhere in world, and then it's a great place to come home to," she says. "We have wonderful weather, lots of golf and numerous other recreational activities from football to relaxing on the beach."

Other larger Florida markets with a strong first quarter include Orlando, where 6,259 homes sold; and Tampa-St. Petersburg-Clearwater, where 6,204 homes changed hands, both for an 8 percent increase over the 2002 first quarter sales. The median home price also rose in those markets over the same period: in Orlando, 11 percent to $135,300; and in Tampa-St. Petersburg-Clearwater, 7 percent to $137,800.

Among the state's small to medium-size markets, the Daytona Beach MSA posted a 34 percent increase in sales activity for the quarter, with 2,309 homes changing hands compared to 1,727 homes sold a year ago. Over the same period, the market's median home price rose 17 percent to $121,500; a year ago, it was $103,500.

Greg Antonich, president of the Daytona Beach Area Association of Realtors and a broker-salesperson with RE/MAX Realty Inc., says, "Our area is a coastal beach area, which attracts buyers looking for vacation homes and retirement homes. And with the low mortgage rates today, were seeing more of a buy-now mentality where people are going ahead and buying the second homes for their retirement properties, especially in light of what they think the cost of those homes could be a few years from now."

Other smaller markets reporting double-digit increases in existing home sales in the first quarter of 2003 include: Naples, where 970 homes sold for a 22 percent increase; Panama City, where 447 homes changed hands for a 20 percent gain; and Fort Walton Beach, where 749 homes sold for a 17 percent increase. The median sales price also rose in those markets: in Panama City, 20 percent to $134,000; in Naples, 11 percent to $275,500; and in Fort Walton Beach, 11 percent to $140,800.

The following chart shows statistics for Florida and its 20 MSAs follows. It compares the volume of existing, single-family home sales and median sales prices in the first quarter of 2003 to the first quarter of 2002, based on Realtor transactions.

                 Florida Sales Report - 1st Quarter 2003
                      Single-Family, Existing Homes

                         Realtor Sales        Median Sales Price
  Statewide &
  Metropolitan
  Statistical      1st Qtr.  1st Qtr.    %     1st Qtr.   1st Qtr.    %
  Areas (MSAs)       2003      2002     Chge     2003       2002     Chge

  STATEWIDE         38,745    35,212    10%   $145,600    $131,900    10%
  Daytona Beach      2,309     1,727     34   $121,500    $103,500     17
  Fort Lauderdale    3,116     3,005      4   $208,700    $181,200     15
  Fort Myers-
   Cape Coral (1)    1,883     1,668     13   $140,800    $129,800      8
  Fort Pierce-
   Port St.
   Lucie (2)         1,039       925     12   $136,300    $106,900     28
  Fort Walton Beach    749       640     17   $140,800    $127,200     11
  Gainesville          552       484     14   $130,700    $124,800      5
  Jacksonville       3,224     2,808     15   $126,300    $115,500      9
  Lakeland-
   Winter Haven      1,100     1,048      5    $86,800     $84,300      3
  Melbourne-
   Titusville-
   Palm Bay          1,433     1,331      8   $124,200    $103,200     20
  Miami              2,623     2,653     -1   $196,600    $167,100     18
  Naples               970       796     22   $275,500    $248,600     11
  Ocala (3)            N/A       N/A    N/A        N/A         N/A    N/A
  Orlando            6,259     5,775      8   $135,300    $121,400     11
  Panama City          447       374     20   $134,000    $111,900     20
  Pensacola            997       926      8   $112,300    $109,500      3
  Punta Gorda          503       489      3   $128,100    $109,000     18
  Sarasota-
   Bradenton (4)     1,783     1,633      9   $174,600    $155,400     12
  Tallahassee          765       545     40   $131,100    $133,100     -2
  Tampa-
   St. Petersburg-
   Clearwater        6,204     5,744      8   $137,800    $129,200      7
  West Palm Beach-
   Boca Raton (5)    1,240     1,175      6   $227,200    $183,500     24

   (1) Data for Cape Coral, Sanibel and Captiva for March was not available.
   (2) Data for Martin County for March was not available.
   (3) Ocala data was not available.
   (4) Data for Venice for March was not available.
   (5) Data for West Palm Beach-Boca Raton MSA for January and February was
       not available.

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.

The Florida Association of Realtors (FAR), the voice for real estate in Florida, provides programs, services, continuing education, research and legislative representation to its 90,000 members in 70 boards/associations.

Source: Florida Association of Realtors

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