Real Estate Blog

People who thought prices would go down saw them go up again in March, as the number of home sales increased while current inventory remained at all-time lows. The Florida Realtor Association reports via this PR Newswire press release:

Out-of-state buyers and those moving within Florida’s borders are pushing up demand for existing single-family homes in the Sunshine State, driving statewide sales in March to a total of 24,045 homes — a 6 percent increase over March 2004’s sales of 22,748 homes, according to the Florida Association of Realtors(R) (FAR).

Low mortgage rates and high demand continue to impact housing prices
throughout the state, report Realtors in many markets. Last month, the
statewide median price rose 28 percent to $212,300; a year ago, it was
$165,700. In March 2000, the statewide median sales price was $121,600,
resulting in a 74.5 percent increase over the five-year-period, FAR records
show. The median is a typical market price where half the homes sold for more,
half for less.

Florida’s average home price rose above the national average home price of $188,200. You may be wondering, “But John, how did Tampa-Clearwater-St. Petersburg home sales do in March?” Well, here’s your answer:

Other large Florida MSAs reporting strong resales activity last month
include: Tampa-St. Petersburg-Clearwater, where 4,974 homes changed hands for a 16 percent increase; and Jacksonville, where 1,555 homes sold for a 7 percent gain over March 2004 sales. The median sales price also rose in those markets: in Tampa-St. Petersburg-Clearwater, 24 percent to $179,300; and in Jacksonville, 17 percent to $172,300.

Buyers buying here should be ready to pay full asking price if they have to, as there is very little room for negotiation, if any, for anything priced under $500,000. Inventory here is incredibly scarce and sellers are getting their prices in most cases, if not very, very close to the prices they are asking for. Everyone in the country wants to live here or have a second home here, and with rates remaining well-below 7 percent, everyone wants to buy. That’s what’s driving housing prices and that’s what making sales numbers go up each month. The wave of rising prices is nowhere near breaking. Contact me now if you want to buy now before prices go up again.

Around the Web:

RISMedia: Florida Home Sales, Media Price Rise In March

-John Mudd
“Mr. Real Estate”