Florida's Home Sales Enjoy 31% Year-over-Year Increase in 2009

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(ORLANDO, FL) -- According to the latest housing data released today by the Florida Realtors (FAR), at the end of 2009, Florida's existing home and condo sales were higher than a year earlier, a continuing trend for statewide sales activity.

Existing home sales rose 31 percent at year's end, with a total of 163,148 homes sold statewide compared to 124,168 homes sold at year end 2008, according to Florida Realtors. Existing home sales activity at the end of 2009 also was 25.6 percent higher than the 2007 statewide sales level, records show. Statewide sales of existing condos increased 47 percent at year end 2009 compared to year end 2008's sales figure; it was 33.7 percent higher than the year end 2007 statewide existing condo sales.

Seventeen of Florida's metropolitan statistical areas (MSAs) reported increased existing home sales, while 18 MSAs had higher condo sales through the period. A majority of the state's MSAs have reported increased sales for 18 consecutive months.

"Continuing to stabilize and revitalize the real estate market is the linchpin to a strong economic recovery," says 2010 Florida Realtors President Wendell Davis, a broker and regional vice president with Watson Realty Corp. in Jacksonville. "Robust housing and commercial property markets generate business, but they're also key to helping families build a sense of financial security. Research shows that not only do long-term homeowners benefit from the value and price appreciation of their homes, but even more beneficial is something that simply can't be measured - a place to raise their families, create memories and call home.

"Now, more than ever, consumers can count on the expertise of Florida Realtors to help them conquer the challenges of today's marketplace, whether they're looking for a home or the right location for a new business."

Florida's median sales price for existing homes at year end 2009 was $142,600; a year earlier, it was $187,700 for a 24 percent decrease. The national median existing single-family home price was $171,900 in November, down 4.4 percent from a year ago, according to the National Association of Realtors®. NAR housing industry analysts note that sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes. The median is the midpoint; half the homes sold for more, half for less.

(See related Florida Existing Home Sales Story for December 2009)

NAR's latest industry outlook predicts the housing recovery to gain momentum in the second half of 2010. "It will be at least early spring before we see notable gains in sales activity as homebuyers respond to the recently extended and expanded tax credit," said NAR Chief Economist Lawrence Yun.

Qualified buyers who have signed a contract to buy a primary residence by April 30, 2010, have until June 30, 2010, to close the transaction to be eligible for the federal tax credit of up to $8,000 for first-time buyers and $6,500 for repeat buyers.

Yun said he expects an additional 900,000 first-time buyers will qualify for the extended tax credit in addition to about 2 million who have already purchased; 1.5 million repeat buyers also are expected to benefit from the credit. While mortgage interest rates likely will inch higher in 2010, Yun said the tax credit impact in the first half of the year and expected job growth impact in the second half will support home buying; in turn, activity should absorb enough inventory to bring a rough balance between buyers and sellers. Home prices are expected to stabilize or even modestly rise as a result in 2010, according to NAR.

In Florida's year-to-year comparison for condos, 55,985 units sold statewide at year end 2009 compared to 38,095 units at year end 2008 for an increase of 47 percent. The statewide existing condo median sales price at year's end was $108,000; a year earlier, it was $164,200 for a 34 percent decrease. The national median existing condo price was $178,000 in November 2009, according to NAR.

Interest rates for a 30-year fixed-rate mortgage averaged 5.04 percent in 2009, a significant drop from the average rate of 6.03 percent in 2008, according to Freddie Mac. Florida Realtors' sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

Among the state's smaller markets, the Pensacola MSA reported a total of 3,389 homes sold at year end 2009 compared to 3,208 homes a year earlier for a 6 percent increase. The market's existing home median sales price at year end 2009 was $145,800; a year earlier, it was $155,800 for a 6 percent decrease. A total of 497 condos sold in the MSA, up 22 percent over the 409 units sold at year end 2008. The Pensacola MSA's existing condo median price at year end 2009 was $240,300; a year earlier, it was $239,000 for an increase of 1 percent.

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