Florida's Existing Home Sales Slower in December 2007

Sales of existing homes and
condominiums in Florida continued to reflect the impact of a sluggish
economy and mortgage financing issues in December. Statewide, sales of
existing single-family homes totaled 8,828 last month while 12,758 homes
sold in December 2006 for a decrease of 31 percent in the year-to-year
comparison, according to the Florida Association of Realtors(R) (FAR).

But some industry analysts see signs that the housing market may be
starting to turn around, with increasing stability in the mortgage sector.
National Association of Realtors(R) Senior Economist Lawrence Yun notes in
NAR's latest market outlook that consumers appear to be waiting for
"additional signs of market stabilization. There are more people with
financial capacity now than in 2005, but many are trying to market-time
their purchase" - which makes the exact timing of the housing recovery more
uncertain, he says. Still, Yun says that 2007 should be the fifth highest
year on record for existing-home sales.

Florida's median sales price for existing single-family homes last
month was $208,900; a year ago, it was $239,900 for a 13 percent decrease.
The median is the midpoint; half the homes sold for more, half for less. In
December 2002, the statewide median sales price for single-family homes was
$145,300, for an increase of 43.8 percent over the five-year-period,
according to FAR records.

The national median sales price for existing single-family homes in
November 2007 was $208,700, down 3.7 percent from a year ago, according to
NAR. In California, the statewide median resales price was $488,640 in
November; in Massachusetts, it was $330,000; in Maryland, it was $293,421;
and in New York, it was $215,000.

Sales of existing condominiums in Florida also decreased last month,
with a total of 2,693 condos sold statewide compared to 3,912 in December
2006 for a 31 percent decline, according to FAR. The statewide median sales
price for condos last month was $187,100, down 8 percent from December
2006's condo median price of $202,500. NAR reported the national median
existing condo price was $221,100 in November 2007.

Last month, interest rates for a 30-year fixed-rate mortgage averaged
6.10 percent, down from the average rate of 6.14 percent in December 2006,
according to Freddie Mac. FAR's sales figures reflect closings, which
typically occur 30 to 90 days after sales contracts are written.

Among the state's larger markets, the West Palm Beach-Boca Raton
Metropolitan Statistical Area (MSA) reported 467 existing homes sold last
month compared to 607 homes sold a year ago for a 23 percent decrease. The
market's median sales price for homes was $337,900; it was $368,200 in
December 2006 for an 8 percent decrease. A total of 419 existing condos
changed hands in the MSA last month, down 18 percent from the 508 condos
sold the previous year. The existing condo median sales price in December
was $161,400; a year ago, it was $215,700 for a 25 percent decrease.

"Our area is a great place to live, with beautiful beaches, diverse
businesses and numerous cultural and leisure activities," says John Mike,
president of the Realtors Association of the Palm Beaches and a Realtor
associate with Prudential Florida WCI Realty. "In December, people are
ready to buy because they want to be able to take advantage of Florida's
homestead exemption for the year. As prices have adjusted to more realistic
levels from the highs at the peak of the boom years, it's opened up housing
opportunities for many more people. And with plentiful inventory, it means
that buyers are able to find exactly what they're looking for from a wide
range of options."

Among the state's smaller markets, the Gainesville MSA reported a total
of 179 homes sold in December compared to 237 homes a year ago for a 24
percent decrease. The existing home median sales price was $188,300; a year
ago, it was $194,200 for a 3 percent decrease. A total of 48 existing
condos sold in the MSA last month compared to 66 condos the previous
December for a 27 percent decrease. The market's existing condo median
price was $135,000; a year ago, it was $161,500 for a decrease of 16
percent.

J. Parrish, president of the Gainesville Alachua County Association of
Realtors and president of Coldwell Banker M.M. Parrish, Realtors, notes the
area's diverse business and employment opportunities continue to attract
new residents. "At the height of the real estate boom years, two to two and
a half years ago, the Gainesville area posted more realistic, sustainable
sales and price gain figures," he says. "Our colleges, the university
system, extensive healthcare industry and other governmental entities
really drive the local economy and provide a strong underlying economic
foundation."

Two charts showing statistics for Florida and its 20 MSAs are attached.
One chart compares the volume of existing, single-family home sales and
median sales prices price in December 2007 to December 2006 based on
Realtor transactions; the other compares the volume of existing,
condominium sales and median sales price December 2007 to December 2006
based on Realtor transactions.

The Florida Association of Realtors(R), the voice for real estate in
Florida, provides programs, services, continuing education, research and
legislative representation to its 150,000 members in 67
boards/associations.

Source : http://www.prnewswire.com/