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Florida market cools

After virtually doubling over the last five years, existing-home median prices in Florida rose just 3 percent in June, to $257,800 up from $249,800 a year ago, according to The Florida Association of Realtors® (FAR).  A total of 18,089 existing single-family homes sold statewide last month, a decrease of 29 percent from the 25,552 homes sold during the previous June.

Florida's housing growth lagged behind the national average of 6.4 percent for June this year, according to the National Association of Realtors® (NAR).  However, Florida prices are already higher than the national average where the median sales price for existing single-family homes was $229,700 in May.

(The median price is an indicator of a typical market price where half the homes sold for more, half sold for less.)

Sales of existing condos in Florida also decreased in June, with a total of 5,241 condos sold statewide compared to 8,109 in June 2005 for a 35 percent decrease, according to FAR.  The statewide median sales price for condos remained relatively flat at $212,500; a year ago, it was $215,700. Florida condos are still cheaper than the national average, however, where the national median existing condo price in May 2006 was $229,300.

"The market is becoming more balanced, with greater negotiating give-and-take between buyers and sellers," says Beverly Pindling, president of the Orlando Regional Realtor Association and broker-partner of Orlando Real Estate Professionals. "While the inventory of homes for sale is up, the market is reaching a point of equilibrium. The challenge for many buyers is the higher mortgage rates, coupled with rising costs for gasoline, for energy, and for property insurance -- it's squeezing their ability to make monthly payments."

According to Freddie Mac, the average rate for a 30-year fixed-rate mortgage was 6.68 percent in June, up from 5.58 percent in June 2005.

A buyer's market

Home sales are projected to ease modestly but should stay within a relatively narrow range over the balance of the year -- signs that the market is stabilizing, according to NAR housing industry analysts. Still, NAR expects 2006 to be the third strongest sales year on record. Analysts note that the housing market continues to provide a strong foundation to the economy even as the market adjusts, while slower appreciation assists in preserving long-term affordability.

NAR President Thomas M. Stevens from Vienna, Va., said opportunities have opened for home buyers. “People who were discouraged by the bidding wars that were so common over the last few years are finding more choices now,” said Stevens, senior vice president of NRT Inc. “Relative to the five-year housing boom, this year is a buyer's market in much of the country with plentiful supply, along with interest rates which remain historically favorable, so it's a good time to buy a home.”

In California, the statewide median resales price was $564,430 in May; in Massachusetts, it was $352,700; in Maryland, it was $315,003; and in New York, it was $249,900.

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