Florida real estate continues comeback
The definition of insanity is continuing to do the same thing over and over again. So why do we torture ourselves every month and look at the real estate performance statistics? I guess we really are insane. This month, though, the news continues to be good, at least for Florida.
Nationally, economists have been disappointed by a string of weaker than expected home sales reports. Sales of existing homes dropped in March all over the country, but especially in areas that were hit by the extremely cold winter weather. Sales of previously owned homes were down 7.5 percent from a year earlier, the fifth straight month in which sales have fallen below the year-earlier level.
As far as sale prices are concerned, even though the market has leveled off, traditional sellers have been slow to list their homes. Because of this, inventories are low and pushing prices up, which is good for sellers, but bad for buyers. In addition, the National Association of Realtors indicated it will probably lower its sales forecast of existing homes.
Its economists are expecting a slower than anticipated housing sector blamed partly on incomes that have not kept pace with house price increases and an uptick in the 30-year, fixed mortgage rates. Although mortgage rates are still on average below 4.5 percent the increase does affect purchasing power.
The weather also is being blamed for the decline in new home sales dropping 14.5 percent from February to March of this year. Harsh winter weather closed down construction sites, affecting both the housing and labor markets also having an affect on the continuation of the low inventory.
Here in Florida, we’re not affected by the weather or anything else it appears, since our sale prices keep going up according to the Manatee Associations of Realtors: Median single family home sales increased from $200,000 to $225,950 from last March 13.4 percent. The average single family sale price increased 19.6 percent from $249,877 to $298,967.
Pending inventory was down 23.7 percent from 1133 to 865. Townhouse and Condo sales also were up, but not nearly as much as single family. The median sale price was up 2 percent from $127,000 to $129,500 and the average increased 7.3 percent from $155,609 to $166,917. Pending inventory was also down 9 percent from 377 to 343.
Statewide, the numbers were similar just not as impressive, with median single family sales up 7.1 percent from $161,500 to $173,000 and average sales increasing 6.3 percent from $222,827 to $260,145. Pending inventory also was down by 12.3 percent from 53,755 to 47,169. Median townhouse and condo sales statewide were up 16.7 percent from $120,000 to 140,000, and average sales were up 16.1 percent from $196,568 to $228,167. Pending inventory was also down 18.4 percent from 26,967 to 22,005.
Another interesting number is the decline in cash sales, which have been very strong. Statewide cash sales are down between 6.5 percent and 13.1 percent, probably because of fewer investors in the market place picking up the smaller pool of foreclosures.
I think I’m just a little insane since I don’t actually look at the stats on the Manatee Association of Realtors website every month. But so far, those months when I do peruse the numbers and report them to you, I’m generally happy to do so. A nice by-product of this job.