Smoothing out the bumps for a stronger industry

Miami Beach real estate and eight other Florida's metropolitan areas had an increase in existing home sales in 2008. Seven of these areas showed growth in condo sales. Miami Beach condos were among the gainers in 2008. This marked the fifth consecutive month that markets have documented an increase in sales activity.

According to the NAR Chief Economist Lawrence Yun, "We have favorable affordability conditions, but we need more than that to give buyers with jobs the confidence they need [to return to the housing market]. This is why a housing stimulus is so critical now to encourage more buyers to draw down the inventory and stabilize home prices. Without home price stabilization, there will not be an economic recovery." Market conditions in Florida and nationwide, market conditions continue to vary with solid gains in some areas.

When comparing Florida's condo sales for November 2007 and 2008, 2,278 units sold in 2008 compared to the 2,474 sold in 2007. This is an 8% decrease. The median sales price for statewide existing condos for November 2008 was $130,600 compared to November 2007's $185,600, marking a 30% decrease. The NAR reported the national median existing condo price was $193,000 for October 2008.

November 2008 also saw interest rates for a 30-year fixed-rate mortgage average 6.09%. According to Freddie Mac, this was down from the average rate of 6.21% in November 2007. However, in comparing these numbers it is important to realize that FAR's sales figures reflect closing numbers, which typically occur a month to three months after the sales contract is written.

The Orlando MSA, Florida's large to medium-size market, a total of 1,277 homes were sold in November compared to the 1,108 homes sold in November 2007. This is was a 15% increase for the area. The existing home median sales price for November 2008 was $167,900, compared to 2007 when it was $239,000, marking a 30% decrease. For the existing condo market, a total of 135 units were sold in the Orlando MSA in November 2008, which was up 8% compared to the 125 condos sold in 2007. The market's existing condo median price for November 2008 was $76,100, a 46% decrease from November 2007's price of $140,600.