Florida suffering from ‘soft sales’

Florida home sales have plummeted over the last few months,  according to the FAR…

This is good news for overseas buyers, who can capitalize on falling prices, but it’s bad news for existing homeowners.

Statewide, sales of single-family existing homes dropped 31 percent during the fourth quarter to 26,130 homes, according to the latest report from the Florida Association of Realtors. In Tampa Bay, sales also dropped 31 percent, to 5,105 from last year's 7,388. Each of the 20 metropolitan areas on the report showed a decline in units sold.

The statewide existing-home median sales price was $216,000 in the fourth quarter, a decrease of 10 percent; a year ago, it was $239,800. Tampa Bay reported a median sales price of $197,400, 12 percent lower than the previous year.

Sales activity is expected to remain soft through the first half of the year despite a generational low in mortgage interest rates, according to the National Association of Realtors' latest market outlook.

Pent-up demand

"Household formation was only half of what it should have been last year given the demographics of a growing population and sustained job growth, so there clearly is a pent-up demand from buyers who are on the sidelines," said NAR Chief Economist Lawrence Yun. "Existing-home sales have moved narrowly since last September, but when the full impact of higher loan limits for conventional mortgages begins to register on the market, there is likely to be a notable rise in home sales and prices."

Mortgage rates continue to be low, but availability is a concern. Current rates averaged 6.23 percent in the fourth quarter; a year ago it was 6.25 percent.

In Florida's condo market, sales of existing condos also dropped during the fourth quarter. Statewide, the decline was 27 percent to 7,923 condos. In Tampa Bay sales declined 24 percent to 1,322.