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September 25, 2008

According to the latest Florida Association of Realtors' stats, when it comes to real estate, the sunshine state and local areas is looking bright.

Even though the nation's real estate market has been comparatively stable throughout 2008, increasingly strict lending requirements and other factors continue to make for a flat outlook for many areas of the country. However, Florida's real estate market is one of a few in the nation that is picking up speed. And nowhere is that more apparent than on the Emerald Coast.

In July, sales rose by 10 percent locally of existing condos along the Emerald Coast, as compared to last year, and median sales price declined by 6 percent. A 7 percent drop in sales and 13 percent in median sales price is how the state averaged as a whole.

In the mean time, sales of existing single-family homes lost 16 points locally and the median sales price dropped 5 percent. The state average was a peculiarity of sorts in that it discovered sales of existing homes were stagnant — neither rising nor falling, as compared to last year — an atypical event in recent months. However, the median sales price throughout the state averaged a dip of 19 percent.

Yet, the dips and lack of incredible gains in median sales price lends belief to the idea that housing remains more-affordable than in years past. And experts say the outlook for the near future is good.

"NAR's housing affordability index is likely to remain favorable throughout 2008," predicted Lawrence Yun, National Association of Realtors chief economist.

FAR's second quarter round-up indicates sales of existing condo units along the Emerald Coast were off 16 percent and the median sales price, 4 percent. In nearby Pensacola the numbers were down 22 and 4 percent and in Panama City, sales were down 3 percent while the median sales price there remained unchanged.

Existing single-family homes sales dipped 10 percent locally and the median sales price stayed the same. In contrast, the state averaged drops of 6 and 16 percent.

Area real estate professionals read the signs as hopeful as the markets continue to report smaller declines and even some gains in sales throughout 2008.

"After a significant period of decline as part of the market's normal cycle, we are now seeing a period of shifting up and down," said ECAR president Cliff Chaplin. "Once again, we see this as another sign that the local market is continuing to stabilize."

NAR forecasts that 30-year mortgage rates will be hedging upwards to 6.6 percent by the end of the year and to 6.7 percent by the beginning of 2009. As a logical response to the market's current abundant inventory of existing homes, new home starts are expected to decline by 17.1 percent in 2009.