Today's Local Real Estate News

The Florida Association of Realtors® released data on existing home sales yesterday. Even with very little to work with, they still managed to spin the absolutely dreadful data by comparing to 2002 data:

“ORLANDO, Fla. – July 25, 2007 – Despite favorable mortgage interest rates, strong job growth and other positive economic conditions, statewide sales of existing single-family homes in Florida totaled 12,954 in June and were closer to activity levels in June 2002 – prior to the housing boom years – than June 2006 figures when 18,607 homes sold for a 30 percent decrease in the year-to-year comparison, according to the Florida Association of Realtors® (FAR).”

“Florida’s median sales price for existing single-family homes last month was $243,200; a year ago, it was $256,200 for a 5 percent decrease. The median is the midpoint; half the homes sold for more, half for less. In June 2002, the statewide median sales price for single-family homes was $142,400, for an increase of 70.8 percent over the five-year-period, according to FAR records.”

“In May 2007, the national median sales price for existing single-family homes was $223,000, down 2.4 percent from the previous year, according to the National Association of Realtors® (NAR). In California, the statewide median resales price was $591,180 in May; in Massachusetts, it was $355,000; in Maryland, it was $312,683; and in New York, it was $239,000.”

“Existing home sales are expected to recover in 2008 and pick up by the end of this year, according to NAR’s latest market outlook. ‘It appears some buyers are simply waiting for more signs of stability before they get serious about getting into the market,’ says NAR Senior Economist Lawrence Yun. ‘The market is underperforming when you consider positive fundamentals such as the strength in job creation, economic growth, favorable mortgage interest rates and flat home prices.’ "

“Sales of existing condominiums in Florida also decreased last month, with a total of 4,004 condos sold statewide compared to 5,532 in June 2006 for a 28 percent decline, according to FAR. The statewide median sales price for condos last month was $206,100, down 3 percent from June 2006’s condo median price of $213,200. NAR reported the national median existing condo price was $228,200 in May 2007.”

Locally, the Miami Herald, the Sun-Sentinel, and the Palm Beach Post reported on their respective counties:

For now, the median price of a single-family house in June was $371,600 in Miami-Dade, a drop of 2 percent from June 2006 and 7 percent from May. There were bigger price swings for condos. Miami-Dade's median price was $275,500, up 7 percent and 1 percent from May.

But the big story remains the ongoing dearth of sales activity. Existing Miami-Dade condo sales plummeted more than 50 percent in June from the same month last year and 15 percent compared to May. Similarly, the number of existing Miami-Dade single-family houses sold in June plunged 47 percent compared with a year ago. Sales were off 5 percent from May.

Sales of existing homes in Broward County tumbled 22 percent last month, to 674 from 861, the Florida Association of Realtors said Wednesday. But the median price of an existing home in the county rose a modest 1 percent or $4,600, to $382,000 from $377,400 a year ago, the association said. Tallahassee and Ocala, north of Orlando, were the only other areas in the state to have median price increases in June.

Sales of existing homes in Palm Beach County declined in June, but not as much as in many other parts of the state, according to a Florida Association of Realtors report released Wednesday.

Still, sales of existing single-family homes fell 19 percent when compared with June 2006, and the median price took a tumble to $377,900 from $405,500. It was the first significant drop - 7 percent - in home prices since the market started cooling off from its unprecedented run-up two years ago.

Of particular interest is the human interest part of the Sun-Sentinel article:

"June Bechthold and Allan Sacks have been trying to sell their two-bedroom home near the water in Deerfield Beach since January. They originally asked $434,900 but have since dropped the price to what they hope is an eye-catching $387,387."

"The couple has had only one offer, and it was too low.'We're not trying to get top dollar,' said Bechthold, 65, a retired volunteer services coordinator. 'We're just going to hang in there.'"

Fortunately, we can look up June and Allan’s home on BCPA.net and see that they only paid $157,990 for their home back in December 1997. So, they stand to make a sizeable profit even after their "eye-chatching" price drop. However, I doubt they will be selling their 2/2 dated home any time soon. Keep hanging in there, June; it may be a decade at your current price.

With all that, I thought the most interesting and telling story of the day comes from a South Florida company that one would think is unaffected by the housing crisis. Following an earnings release that contained lower-than-expected revenue, AutoNation explained how the housing market affected automobile sales:

“Mike Jackson, AutoNation's chairman and chief executive, pointed to the continued housing slump in California and Florida for much of the pain. Those two states account for about half of AutoNation's new-auto sales and about 20% of the auto industry's new vehicle sales nationwide.”

“In California, the nation's largest auto market, sales of new and existing homes and condos plummeted 33% in June from a year earlier, according to DataQuick, a real-estate research firm. Foreclosures in the Golden State have also spiked, with the number of default notices issued during the second quarter rising to its highest point in more than a decade, DataQuick says.”

“’A key force behind consumer spending in recent years was the perceived growth in household wealth consumers had from the value of increasing home prices and readily available home equity credit,’ Mr. Jackson said. ‘With the slumping housing market, consumers have been less willing to purchase big-ticket items, including vehicles.’ Mr. Jackson said he expects weak auto sales to persist amid the continued housing correction."

"The housing slump, along with high fuel prices, has hindered auto sales throughout much of the year. Detroit's auto makers have borne much of that pain as consumers shy away from pickups and sport-utility vehicles. In addition to sapping consumers of equity and outright cash for vehicle purchases, the housing slump damps sales of profitable pickup trucks as home construction slows.”