Median Price of Florida Single-Family Homes Climbs

Jul. 26–The median price of an existing single-family home in South Florida climbed even higher in June as a combination of low mortgage rates, high demand and tight supply fueled the red-hot South Florida real estate market.

But the lack of inventory kept sales down across the area, according to a monthly report released Monday by the Florida Association of Realtors.

In Broward, the median home price rose to $378,000, or $85,700 more than last year at the same time. Palm Beach County’s median home price topped $400,000 in June for the first time.

The median price of a home, which means half the homes sold for more and half sold for less, was $406,800 in Palm Beach County. That means buyers paid $94,800 more in June than they would have a year ago. Miami-Dade County’s median price in June was $363,100, up 27 percent from last June. The data does not include prices or sales of condominiums or town homes.

With inventory so low, single-family homes are getting hard to find, but not impossible.

Century 21 America’s Choice agents in West Palm Beach, Boynton Beach and Wellington, have an inventory of 150 properties, said President Douglas Rill. Two thirds of the properties are listed under the median price, mostly in older neighborhoods. Rill says it’s false to assume there are no homes on the market at or below the median price. But those homes won’t stay on the market long.

“Buyers can’t take a lackadaisical approach to buying real estate in this market,” said Rill. “You have to be ready to jump on a property right away.”

Traditionally, the summer months are busy for real estate agents because buyers often look for new homes to coincide with the start of the school year. People relocating for new jobs often time the move with the school year. But with fewer single-family homes on the market, more families are turning to more affordable condo conversion units and townhouses, said Mike Pappas, president of The Keyes Co. He estimates his company now sells more condos and townhouses than last year and has seen a 40 percent drop in overall inventory.

Statewide, home prices have increased 108 percent over the last five years. The median price for a home in Florida rose to $248,700, up from $189,200 a year ago. Mortgage rates have actually decreased. According to lender Freddie Mac, the 30-year fixed mortgage rate averaged 5.58 percent in June, compared to a rate of 6.29 percent in June of 2004.

Nationally, the median sales prices for an existing single-family home was $204,600 in May, up 12.2 percent from the previous year. Comparing Florida to other markets, the median price in California is $522,590 and $245,000 in New York. North Carolina’s median price was $200,889.

South Florida real estate agents say baby boomers retiring and inheriting money from their parents are driving South Florida and the state’s real estate markets. Pappas said South Florida is still affordable when compared to other major metropolitan cities such as New York, San Francisco and Boston.

“As much as we’ve seen an increase, rising prices are not just a South Florida phenomenon,” said Pappas. “Unemployment is down and rates are low, it’s really a market on steroids.”

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