Florida Realtors: May Ends with Year-on-Year Increase of Existing Condo and Home Sales

Sales of existing condos and homes in Florida posted a year-over-year increase of 17 and 3 percent, respectively, in May, according to the latest data from the Florida Realtors.

During May, a number of 17,228 existing homes were sold, up three percent from 16,790 in May last year.

This is the sixth month in a row with year-over-year growth in sales of both existing condos and existing homes. Furthermore, Florida Realtors data shows that sales of existing homes increased in 12 of the state’s metropolitan statistical areas, while sales of existing condos increased in 14 metropolitan statistical areas.

The president of Florida Realtors, Patricia Fitzgerald, said that many buyers realized that the current times could be the best in a long time to buy homes and condos, as mortgage rates are low and the inventory of properties at affordable prices is high.

The median price in Florida for existing homes was 135,000 dollars, down 5 percent from May 2010, when it was 142,900 dollars. May also brought a 2.9 percent increase of the median price for Florida homes.

The median price for condos was 98,200 dollars, up two percent from 96,400 dollars in May last year. Compared to April this year, the median price was 6.9 percent higher but still way below the national average of 167,300 dollars.

Real estate analysts pointed out that the increase must take into account the high number of distressed and foreclosed properties, which still has negative effects on the statewide median price. Another factor with negative influence on the real estate market is the tight credit conditions, which continue to suppress the recovery of the market.

Experts forecast that the condo and homes market will increase at an uneven pace for the remainder of the year, and tight credit is making market recovery more difficult than it should be, as banks continue to hold on to high reserves of cash.