The combination of fallen home prices, record low mortgage rates, and the IRS's New Home Buyer Tax Credit of $8000 seems to be the perfect recipe for the rise in home sales we've seen in Florida over the past seven months. Check out the fast facts bullets below:
FAST FACTS Increases in home & condo sales
- Existing home sales rose 30% last month, compared to the month of February in 2008
- Condo sales rose 25% in March of this year, compared to year-ago level
- In one month: Condo sales rose 37.2% in March 2009 over February 2009
Downside: Decreases in median sales price offer distorted values to buyers and sellers. In March of this year, Florida's median sales price fell 30% from that of last year's. In March 2008 the median sales price was $201,700 compared with this past March of $141,300. Due to the large number of foreclosures, median sales price data this year does not carry the same weight as it did in years past. Half of this year's sold homes were bought at discounted prices and much less than the median sales price.
The latest report from the National Association of Realtors (NAR) confirmed that entry-level buyers are seeking bargains. The sale of distressed properties---those in short sale or foreclosure status, as well as bank-owned---accounted for almost half of February 2009's home/condo sales.
Condos suffered more of a decrease in median sales prices than that of homes. Condo median sales prices averaged a 37% decrease: last year they would sell, on average, for $172,300; this year they sold for, on average, $108,700.
These figures are very unsettling for Sellers who want or need to sell fast, recoup their investments or remodeling efforts, etc. For Buyers on the other hand, it's a great time to buy.
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