Keys sales don't match mainland gains

Single-family home sales down 19 percent in August

Wire and staff report
KeysNet.com

Home sales in parts of South Florida jumped in August amid signs that lower prices are drawing buyers back into the region’s long-struggling housing market.

Sales of existing single-family homes in Miami-Dade County increased 22 percent and Broward County sales increased 12 percent compared to the same period a year ago, according to numbers released last week by the Florida Association of Realtors.

Condominium sales were up 13 percent in Miami-Dade, while condo activity in Broward for the month was even compared to August 2007.

In the Keys, sales of single-family homes across the island chain were down 19 percent from the previous August, according to statistics provided by Coldwell Banker Schmitt Real Estate Co. Condominium sales were down 41 percent.

The total number of August sales in the Keys was 57 in 2008 and 78 in 2007.

A big factor cited for increased sales on the mainland appears to be significant price drops. Homes sold at prices averaging 20 percent lower than last year for single-family homes and condos in both Miami-Dade and Broward counties.

The median price for a Miami-Dade single-family home was $276,000 in August, accounting for a 30 percent decline from last year. In Broward, the median price for single-family homes was $269,800, down 27 percent.

The sharp price reductions have brought back some investor buyers, who have purchased multiple units in some distressed condos, especially in areas closer to employment centers in Miami and Miami Beach.

The Keys real estate market experienced similar price declines; August’s median single-family home price of $430,425 across the Keys was 30 percent below that of the same month in 2007.

The outsized inventory of residences for sale also declined in August on the mainland, but held steady across the Keys. Market watchers say the number of homes on the market must shrink significantly — creating a better balance between buyers and sellers — before prices start rising again.

Mainland South Florida’s results were in contrast to the rest of the country.

Nationally, sales of existing U.S. homes fell by 2.2 percent in August, though the number of unsold homes on the market also dropped sharply from the previous month’s record high.

The National Association of Realtors said sales fell to a seasonally adjusted annual rate of 4.91 million units, from an upwardly revised pace of 5.02 million in July. Sales had been expected to fall by 1.6 percent, according to economists surveyed by Thomson/IFR.

The national median price for existing homes dropped to $203,100, down from $224,400 a year ago. For single-family houses, the median price dropped 9.7 percent, the biggest decline since records began in 1968.

Resales account for about 90 percent of the market, while purchases of new homes make up the rest. Sales of existing homes are compiled from contract closings and may reflect contracts signed one or two months earlier.

There were 4.2 million unsold homes on the market, a 7 percent drop from the record set in July. It was the steepest drop in inventory since December 2006.

The Miami Herald contributed to this report.