Industry News

Florida real estate sales fall 20%

Market feels pinch of rising interest rates, inventory
Published on May 15, 2006

Sales of Florida's existing single-family homes dropped considerably in the first quarter compared to a year ago, while the median price of an existing home grew by double digits, the Florida Association of Realtors reported today. Statewide sales of single-family existing homes totaled 45,864 during first-quarter 2006, down 20 percent from 57,532 homes sold during the same quarter a year ago, FAR reported. "Sales of existing single-family homes in Florida behaved like much of the U.S. across the 2006 first quarter," said Dr. David Scott, executive director of the Dr. Phillips Institute for the Study of American Business Activity and professor of finance at the University of Central Florida. "The stress points on unit sales come from two key sources: One, rising inventories of dwellings for sale, and two, rising mortgage rates. On the latter, conventional mortgage rates closed the 2006 initial quarter at 6.35 percent and are trending up." The statewide existing-home median s...

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