Florida’s Existing Homes Sector Performed Better than National Market

Published by nora | Filed under Buyer / Seller Tips, Market Trends, Mortgage / Finance, Real Estate

While the sales of existing homes dropped nationwide in May 2011 both over the year and over the month, sales of existing homes in Florida increased over the month. In May, a total of 17,228 pre-owned homes were sold, an increase of 3 percent from the 16,790 total in May last year. Sales of pre-owned condos also increased by 17 percent year-over-year. A total of 8,338 condo units were sold in May this year, up from 7,104 units in May 2010.

In contrast, the adjusted annual rate of sales of existing homes in May fell by 3.8 percent over the month from 5 million units in April to 4.81 million units. The year-over-year change was also a decrease, as the May 2011 sales pace was more than 15 percent lower than the 5.68 million rate in May last year.

Three of the four key regions experienced decreases, with the Midwest having the biggest drop of nearly 23 percent over the year and 6.4 percent over the month. The South was second with a year-over-year drop of 14.4 percent and a month-over-month drop of 5.1 percent. It was the West that was able to stabilize its existing home market during the month, as its annual sales pace remained unchanged and its year-over-year drop was the lowest among the regional sales rate decreases.

In Florida, 12 metro areas experienced year-over-year increases in sales of existing homes in May, and 14 areas had increases in sales of pre-owned condo units. May 2011 was the sixth straight month that pre-owned sales were higher than in 2010.

The median sales price for pre-owned single family homes in Florida also increased to $135,500 in May, up by 2.9 percent from the April median price. Compared to May 2010, however, the median price dropped by 5 percent from $142,900. Pre-owned condos, meanwhile, were sold at a median price of $98,200, up by 2 percent over the year from $96,400 in April. Over the month, the increase was 6.9 percent, a relatively substantial increase during hard times.

In April, the national median price for existing condos was $167,300 while the median price for pre-owned single-family homes was $163,200, down by 5.4 percent from the April 2010 median.

According to economists, the housing market is not recovering as fast as previously expected partly because of tight credit, low appraisals and the impact of foreclosures. It’s heartening though that the sales of existing homes in Florida increased in May, bucking the nationwide trend.

Explore affordable existing homes in Tampa with help from Tampa4U.com. professionals.