Existing condominium sales in Florida were up 15% in the third quarter on a year-over-year basis, probably helped along by a 21% decrease in the price over the same period, according to data from Florida Realtors.
There were 16,938 condos that changed hands in the third quarter, compared with 14,793 one year prior. The median sales price was $84,000 for the most recent period while last year it was $106,000.
Sean Snaith, director of the University of Central Florida’s Institute for Economic Competitiveness, said, “As the economic recovery continues in Florida—and in particular as the labor market improves—the housing market will follow suit. The price decline in the condo market continues to attract domestic and foreign buyers to Florida to take advantage of this buying opportunity.”
In the second quarter, there were 20,986 condo units sold statewide. Snaith said the drop-off between the second and third quarters was expected as the expiration of the first-time homebuyer’s tax credit pulled future demand into the period between April and June.
Miami, which had the largest number of condo sales in the third quarter, saw a 43% increase over the previous year, while in Orlando, No. 4 in condo sales, they were up 46%.
Fort Lauderdale, No. 2, saw sales decline by 8%, while in West Palm Beach-Boca Raton (No. 3), they were up 20% and in Tampa-St. Petersburg-Clearwater (No. 5), they were up 7%.
While all areas of the state did show significant declines in prices, Orlando actually bucked the trend, and the median price was essentially flat at $49,900 for the third quarter, compared with $50,600 one year ago.
The news was not so good for existing single-family home sales, which fell 7% in the year-over-year comparison, from 44,451 in the third quarter of 2009 to 41,122 this year. This ended eight consecutive quarters where Florida home sales had increased on a year-over-year basis.
The median sales price also fell in that same time frame by 7%, from $145,300 down to $135,200. Prices are being affected by sales of foreclosures and other distressed properties.
In the second quarter, there were 51,564 existing home sales, with a median price of $141,300.
The Ocala area was the one part of Florida with a significant gain in home sales, up 14% from the third quarter 2009, but it may have benefited from the same price discounting that drove condo sales in the state. It had the largest percentage decrease in median sales price, down 20%, from $103,100 to $82,700.
As for investment properties, Timothy Becker, director of the University of Florida’s Bergstrom Center for Real Estate Studies, said dollars continue to flow into Florida although investors are wary about the economy.
“The apartment sector is the stellar performer,” he said, adding that conditions continue to improve in the commercial sector. “We’re starting to see stabilization across property types in occupancy, with respondents saying they feel better about what rents are going to look like in the near future.”
