Existing Home Sales in Florida are Up While Prices are Down

Compared to a year ago, sales of existing single family homes in the month of May have seen an increase in Florida.  That is great news.  During the same time,however, the median price of homes has decreased.  Sales of existing single family homes rose by 16 %.   A year ago 13,921 homes were sold in the Month of May, while 12,044 single family homes were sold this past May.  Florida’s median price of homes in May 2008 was $203,800, but this year the median price in the month of May fell to $144,400.  Florida has not seen the prices of homes this low since around October 2002 when the median price of a home in Florida was $140,900.   Around this time the market began to see an upswing in prices.  As the housing market now begins to correct itself from heavily inflated prices we will hopefully see some more stability.

"The improving sales of existing single family homes and condos is a trend we have been seeing for several months in Florida – what is new in this month’s data release is that we are seeing evidence of prices beginning to firm," says Dr. Sean Snaith, director for the University of Central Florida’s Institute for Economic Competitiveness. "While one month of data does not a trend make, it is the first green shoot we have seen in some time as far as prices are concerned; until prices stop declining, we cannot state with confidence that the housing market has stabilized. Sales have risen to levels we have not seen since 2006, though the economy still faces headwinds. As credit markets begin to thaw this will help speed along this process of recovery in the housing market."

The $8,000 tax credit and the decrease in median homes prices may continue the trend of increased homes sales in Florida.  

Source: Florida Association of Realtors

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