Florida Mortgage Activity, Home Sales Dwindle in Tampa Bay Housing Market
The fact that Florida mortgages are heading further and further into default isn’t the only piece of bad news in the Sunshine State right now.
Florida’s housing market continued to mirror the national trend in fourth quarter 2006, reflecting slower sales, stabilizing median home prices and higher inventory levels of homes available for sale in many markets.
Statewide, sales of single-family existing homes totaled 37,177 during the three-month period, a decrease of 28 percent compared to 51,310 homes sold during the same time a year earlier, according to the Florida Association of Realtors.
In the Tampa Bay housing market, sales dropped 40 percent, to 7,039 for the period. Sarasota-Bradenton reported an 11 percent decrease in sales, with 1,861 existing homes sold.
The statewide existing-home median sales price remained stable at $242,100 in the fourth quarter; a year ago, it was $245,600 for a slight 1 percent decrease. However, the median price was $247,900 at the end of the third quarter, indicating that the bottom of the market has yet to be reached. Perhaps Florida mortgage applicantsare waiting to buy until this point is hit.
Tampa Bay prices were at $228,400, an increase of 2 percent from the fourth quarter last year, but down nearly $6,000 from $234,000 in the third quarter of 2006.
“One important indicator of the real estate market is occupancy rates, and these appear to be stable or increasing in most markets, including apartments, office buildings, retail space, and industrial warehouse and distribution space,” said Dr. Wayne Archer, director of University of Florida’s Bergstrom Center for Real Estate Studies.
The latest industry outlook from the National Association of Realtors calls for a steady rise in existing home sales following the fourth quarter. Spring is typically a popular time for mortgage loans to be applied for.
“While home sales may appear weak in comparison with the record surge in 2005, they will be sustained at historically high levels that are in line with long-term demand,” said David Lereah, NAR chief economist, in a release.