Florida Condo Sales Up 81%, Prices Down 6%

In January statewide condo sales in Florida jumped an amazing 81 percent compared to January 2009. The National Association of Realtors (NAR) figures showed 4631 condos sold in January 2010 compared to 2554 in January, 2009.

According to NAR the medium price for condo in January this year was $97,300 compared to $113,300 in January 2009. Existing home sales increased 24 percent last month with a total of 10,465 homes sold statewide compared to 8,444 homes sold in January 2009.

The medium price for a single family home decreased from $139,400 in 2009 to $130,900 according to (NAR). This amounts to a six percent decrease in 2009. Analysts from NAR state that this is a result of the continued number of foreclosures and short sales. Nationally, the medium sale price for homes rose 1.4 percent.

On the Treasure Coast a large number of real estate buyers are falling into three groups:

First, investors who are buying, renovating and reselling. Almost all of these are cash buyers.

Second home buyers from cold climates such as Canada, the upper mid-west, northeast and even as far south as Virginia and North Carolina. Many of these are cash buyers also although some are making large down payments and taking advantage of low interest rates around five percent.

Third, first time home buyers. Obviously, these buyers have been influenced positively by the tax credit program, low interest rates and FHA or Rural Housing finance programs.

An additional bonus for Florida residents is the drop in property tax assessments. Florida’s existing home sales rose dramatically in 2010 while the decline in home prices dropped only six They can now lock into the Florida three percent maximum Homestead Exemption increase as a beginning tax base significantly lower than previous years.

Most out-or-area buyers unknowingly benefit also now that the maximum property tax increase they can receive in one year is limited to five percent. Five percent may seem high but it certainly beats the 10 to 20 percent increases early in the last decade.

Real estate professionals are working harder, longer hours and with more clients than ever. Because of the low prices, they must now sell two or three homes to earn the same living as five years ago.