Florida's Housing Market Shows Strong Price Gains in January While Sales Ease Off Record Pace

Coming off several years of blistering home sales at a record pace, Florida's housing sector followed the national trend in January and showed signs of market adjustments, with a statewide total of 12,815 existing single-family homes sold for a 19 percent decline, according to the Florida Association of Realtors (FAR). Statewide condo sales also slipped, registering an 18 percent decrease from the previous January. Statewide, median prices for existing single-family homes continued to climb. In Jacksonville, home sales in January 2006 dropped 2 percent while median sales price for existing single-family homes rosed 17 percent over a year ago. However, Jacksonville condo sales went up 8 percent in January 2006 and median sales price rose 8 percent from last year. See report.

Housing industry analysts nationwide noted it may take a while for home price growth to cool, following a long period of short supply and sellers accustomed to exceptional price gains. Realtors from across the state report that more homes are available for sale, improving what had been tight inventories in many markets. 2006 FAR President Mike Dooley notes that the market is coming into better balance between buyers and sellers. "For years, many areas in Florida reported tight inventories of homes available for sale," he says. "Now that buyers are seeing more choices, it's even more important for both buyers and sellers to seek advice from real estate professionals. With the expertise and services that Realtors bring to the table, they help to bridge any differences between buyers and sellers that may arise during the sales process and work to keep the transaction going smoothly for everyone involved."

Last month, interest rates for a 30-year fixed-rate mortgage averaged 6.15 percent, up from the average rate of 5.71 percent in January 2005. FAR's sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

Source: Florida Association of Realtors