May 28, 2009
Home sales rise as prices slide
BY JOHN McCARTHY
FLORIDA TODAY
Existing home sales in Brevard County were up 17 percent in April from a year ago, the third consecutive month of increased sales, as the median sales price of single-family homes dropped to its lowest level in seven years.
According to Florida Association of Realtors data released Wednesday, 564 single-family homes sold in Brevard in April, up from 482 a year earlier and 539 in March. Condo sales were up to 141 from 109 in April 2008 -- a 29 percent increase -- and 113 in March.
Prices, though, have fallen to levels not seen since 2002.
The median sales price for single-family homes in April was $113,600, a 29 percent drop compared with the year-ago price of $160,000. The median price was $123,700 in March. The last time the median price was lower was in April 2002, when it was $109,300.
The median price of condos was $120,800, down 25 percent from $161,700 a year earlier. The median price was $123,100 in March. The median condo price had hovered around $120,000 all year after dipping to $107,500 in December.
The dropping prices helped tempt John Dobay and his fiancé, Dawn McDonald, to check out a condo in Cocoa Beach Wednesday. The couple from Niles, Ohio, are regular visitors to the area and were in town for one of Dobay's sons' high school graduation.
"That's why we are looking now. It is the time to buy," said Dobay, who lived in Cape Canaveral before moving back to his native Ohio in 2001.
Their Realtor, Steve Romano of Re/Max Elite Beachside in Cocoa Beach, said he now has two oceanfront condos under contract for about half what they sold for just a few years ago. Both are short sales, where the mortgage holders have agreed to accept less that what they are owed in order to avoid having to foreclose on the properties.
It is those "distress sales" that have driven prices down and brought buyers back to the market, said Sean Snaith, an economist at the University of Central Florida.
"I think they are starting to recognize that there are some values out there that are going to seem like real bargains five or 10 years down the road," Snaith said.
Snaith said the recent increase in sales activity is a good indicator that the housing market is beginning to turn around. "This is one of the signs that if we haven't reached the bottom, we are at least in sight of it."
He added that while the area isn't likely to see a huge run-up in prices like it did in the middle part of this decade, prices won't stay this low forever. He points out that builders have told him many homes are now selling for less than it cost to build them.
"Houses right now are selling below their replacement cost, which tells me we overshot the bottom," he said.
Another factor that might be driving down median sales prices is the number of first-time homebuyers entering the market, Snaith added. The falling prices, an $8,000 tax credit and other incentives are luring buyers with moderate incomes who might not have been able to afford a home three or four years ago.
The trend of more sales at lower prices is reflected in the statewide sales data, as well. According to the Realtors group, 13,111 single-family homes were sold in Florida in April. That's up from 11,133 a year earlier. The median price was $138,500, down from $199,500 in April 2008.
Statewide, 4,660 condos were sold in April, up from 3,862 a year earlier. The median priced dropped to $106,600 from $178,900.
Nationally, April sales were up 2.9 percent over March, the National Association of Realtors said Wednesday. The Romano is a former president of the Space Coast Association of Realtors and is in frequent contact with other agents. They all say things are picking up. "It seems like everybody is busy," he said.
Contact McCarthy at 752-5018 or jmccarthy@floridatoday.com.