The positive trend that has been experienced in Florida for much of 2012 continued in July. According to data released by Florida Realtors, “pending sales, closed sales and median prices rose, while the inventory of homes and condos for sale dropped” last month.
The housing market, which has been rebounding significantly in Florida over the past year, continues to show signs of strengthening. Florida Realtors President, Summer Greene, stated that “Florida’s real estate recovery is on solid ground…Since May 2011, pending sales have increased every month for both existing single-family homes and for townhome-condo properties. In July, pending sales were up more than 42 percent for existing single-family homes and 26 percent for townhouse-condo units, compared to a year ago. Home prices are on the rise in many markets, while the inventory of homes for sale is down. Florida’s housing market is growing stronger and stronger.”
Furthermore, the statewide number of closed sales of existing single-family homes increased to 17,420 in July. This was an increase of 9.8% in July 2012 compared to July 2011. Additionally, the statewide median sales price of existing single-family homes rose to $148,000 last month, which was a 7.8% increase from July 2011.
Analyzing the numbers, Florida’s year-to-year comparison for sales of townhomes/ condos increased 2.8% to 7,779 from those sold in July 2011. Comparatively, the statewide median sales price of townhome and condos was $102,000 in July of 2012, which translated into a respected 10.9% increase from July 2011.
Even the interest rates have continued on a favorable path for those looking to buy. According to Freddie Mac, “the interest rate for a 30-year fixed-rate mortgage averaged 3.55 percent in July 2012 – significantly lower than the 4.55 percent average during the same month a year earlier.”
While these conditions may make it seem that the Florida market is still shifted in the buyer’s direction, at some point that trend is going to change and the sellers will have the upper hand.
Florida Realtors Chief Economist Dr. John Tuccillo stated that “we really need to recognize that over the past year, we have seen a market reversal, from a clear buyers’ market to a neutral market to one that is verging on a sellers’ market.”
As we continue to monitor the progress of the Florida housing market, signs are encouraging that the state is rebounding at an acceptable rate. The advantageous prices are starting to climb, the number of available properties is continuing to dwindle, and the number of distressed properties has declined. This is not only promising for Southwest Florida or the state of Florida; this is encouraging news for the rest of the country, as trends are improving in a majority of states. Nonetheless, we do know that as the Florida market starts to gain momentum, the transition from a buyer to a seller’s market may happen faster than we think.
If you have interest in property on Florida’s Gulf Coast, please click here, Southwest Florida Real Estate For Sale. For more information on a specific property, please contact Jim Mulligan, Suncoasteam Realty at 941-235-7474 or jim@suncoasteam.com.