Fla.’s housing market continues on positive track in Oct

ScottSorensonRealEstate.Com

ORLANDO, Fla. – Nov. 20, 2013 – Florida’s housing market continued its upswing in October 2013, with more closed sales, higher median prices, more new listings and a stabilizing supply of homes for sale, according to the latest housing data released by Florida Realtors®.

“Florida’s economy continues to improve, and that’s good news for the housing market,” says 2013 Florida Realtors President Dean Asher, broker-owner with Don Asher & Associates Inc. in Orlando. “October marks 23 months in a row that statewide median sales prices rose year-over-year for both single-family homes and for townhouse-condo properties. Last month, the median days on market (the midpoint of the number of days it took for a property to sell) was 46 days for single-family homes and 48 days for townhouses and condos. That means 50 percent of homes on the market in Florida sell in less than two months.

“On average, sellers received about 94 percent of their asking price in October. Interested home sellers are paying attention to this positive trend and entering the market, which in turn is helping to stabilize inventory levels.”

Statewide closed sales of existing single-family homes totaled 18,728 in October, up 6.5 percent compared to the year-ago figure, according to data from Florida Realtors Industry Data and Analysis department in partnership with local Realtor boards/associations. Closed sales typically occur 30 to 90 days after sales contracts are written.

Meanwhile, pending sales – contracts that are signed but not yet completed or closed – for existing single-family homes last month rose 3.4 percent over the previous October, and new listings increased 16.4 percent. The statewide median sales price for single-family existing homes last month was $169,000, up 16.6 percent from the previous year. The median is the midpoint; half the homes sold for more, half for less.

According to the National Association of Realtors (NAR), the national median sales price for existing single-family homes in September 2013 was $199,300, up 11.4 percent from the previous year. In California, the statewide median sales price for single-family existing homes in September was $428,810; in Massachusetts, it was $325,000; in Maryland, it was $256,672; and in New York, it was $230,000.

Looking at Florida’s year-to-year comparison for sales of townhouse-condos, a total of 8,598 units sold statewide last month, up 3.1 percent from October 2012. Meanwhile, pending sales for townhouse-condos last month eased slightly, down 3.6 percent compared to the year-ago figure, but new listings rose 9.8 percent. The statewide median price for townhouse-condo properties in October was $130,000, up 22.1 percent over the previous year. NAR reported that the national median existing condo price in September 2013 was $198,600.

Inventory was at a 5.5-months’ supply in October for single-family homes and at a 5.6-months’ supply for townhouse-condo properties, according to Florida Realtors.

“The housing numbers continue to hold up, bolstered by strong employment growth and population in-migration,” says Florida Realtors Chief Economist Dr. John Tuccillo. “We are, however, noticing that there has been a steady decline in the share of cash sales in the market, suggesting that investment activity in Florida real estate may be waning. This takes an important element of demand out of the equation.

“Equally important is the slight rise in inventories we have seen in the past few months. Both factors are linked, but both are happening gradually and the market should be able to adjust to the changes.”

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.19 percent in October 2013, up from the 3.38 percent average recorded during the same month a year earlier.

To see the full statewide housing activity reports, visit the research page on Florida Realtors’ website.

Overall Days on Market Decrease 37 Percent in October

ScottSorensonRealEstate.com

NAPLES, FL (November 15, 2013) - Overall closed sales for homes over $300,000 continued to climb with double digit activity in October, while overall days on the market decreased 37 percent, according to a report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). The Naples area housing market's October 2013 Southwest Florida MLS statistics also show an 18 percent decrease in inventory overall, with a 25% decrease in inventory in the $300,000 and below price category.

"The overall median closed price has neutralized in the $300,000 and above price category, which demonstrates stability in the middle of the market," said John Steinwand, Broker and Principal at Naples Realty Services, Inc. "For instance, in the $300,000 - $500,000 category, the overall median closed price has increased only one percent from $375,000 for the 12-months ending October 2012 to $377,000 for the 12-months ending 2013. In addition, the overall median closed price has seen no change in the $500,000 - $1million price category which is holding at $655,000 for the period of 12-months ending 2013 and statistics indicate only a slight two percent increase in the $1-$2 million price category from $1,350,000 to $1,375,000 in the 12-months ending from October 2012 to 2013."

The only segment of the market that has seen a marked increase in its overall median closed price is the $300,000 and below price segment, which increased 14 percent from $140,000 for the 12-months ending October 2012 to $160,000 for the 12-months ending 2013. Median closed prices in both the single family and condo market in the $300,000 and below price category have contributed equally to this dramatic increase in overall median closed price. The median closed price for single family homes under $300,000 increased 18 percent from $147,000 for the 12-months ending October 2012 to $173,000 for the 12-months ending October 2013. The median closed price for condominiums in this price category increased 13 percent from $135,000 for the 12-months ending October 2012 to $152,000 for the 12-months ending October 2013.

"The ingredients are in place to drive prices up this season," said Mike Hughes, Vice President and General Manager of Downing-Frye Realty. "Whether that happens, remains to be seen. But savvy sellers are in a good position to benefit from the reduced inventory and increased demand. For the last four years, I've noticed the inventory goes up a little between September and October and this year is no different. I think sellers are preparing for a good season. And according to what the statistics show, they have every right to be."

The NABOR® 2013 October Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® October 2013 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

• The overall average Days on the Market (DOM) decreased 37 percent from 172 days in October 2012 to 109 days in October 2013.
• Overall closed sales in the $2 million and above segment increased 46 percent from 213 in the 12-months ending October 2012 to 311 in the 12-months ending October 2013.
• Condominium closed sales increased 14 percent from 4,489 closed sales in the 12-months ending October 2012 to 5,129 closed sales in the 12-months ending October 2013.
• The North Naples (34109, 34110, 34119) area's overall pending sales increased 7 percent reflecting 2,954 pending sales in the 12-months ending October 2013 compared to 2,768 pending sales in the 12-months ending October 2012.
• Overall inventory decreased by 18 percent from 6,409 properties in October 2012 to 5,256 properties in October 2013. Pending sales with contingent contracts are included in the overall inventory number.

Only single family homes in the $300,000 and below price segment experienced a decrease (15 percent) in pending sales from 3,356 pending sales in the 12-months ending October 2012 to 2,869 pending sales in the 12-months ending October 2013. According to Brett Brown, Director of Sales and Managing Broker for Fiddler's Creek Realty, Inc., the decrease in pending sales in the $300,000 and below price category can be attributed to the fact that there's been a significant decrease in the number of distressed properties on the market in 2013.

Added Hughes, "I've noticed that the second half of the year has been filled with a multiple offer environment as both inventory and days on market continue to decrease. My advice to buyers is to move quickly if you find something you like or you may lose it. And to potential sellers, if you've been sitting on the fence waiting to list your home, demand is only going to increase this season, so you'd be well served to put your home on the market to take advantage of the strong demand from a large pool of motivated buyers."

View October 2013 Market Statistics