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While sales of existing homes dropped 17 percent nationwide in December, sales in Florida surged at the end of the year.
Overall, Florida sales rose more than 4 percent from November to December, a sharp contrast to the national drop-off. The 14,630 sales in Florida in December were a 33 percent increase from the same period a year earlier.
Of course, comparing December 2009 to a year earlier is similar to saying New Orleans was a lot better a year after Hurricane Katrina. But normal levels of activity—actual sales—is definitely good news for Florida, the most popular spot in the U.S. for international buyers.
Nationally, the numbers were clearly impacted by the first-time buyer tax credit, which was originally scheduled to expire in November. The National Association of Realtors reported a strong uptick in buying activity in November, an anomaly after months of generally slow but steady increases.
Overall, the number of sales in the U.S. was up 4.9 percent in 2009, according to the NAR’s report. The median sale price fell 12.4 percent, to $173,500.
Florida’s median price was $140,400, a 10 percent decrease from a year earlier, Florida Realtors reports. But the number of transactions skyrocketed. For example, the number of existing condos sold in December was 91 percent higher than a year earlier. And the number of condo sales rose 22 percent from November to December.
Seventeen of Florida’s metro areas reported increases in December and a majority have seen sales increase for 18 consecutive months, Florida Realtors reports.
In Miami, for example, the number of single family home sales jumped 37 percent and condos sales were up 26 percent from November to December, even while the national market sagged.
Of course, a good chunk of those sales were likely foreclosures. Nationally, distressed properties accounted for 36 percent of sales in 2009, NAR says.
But there are increasing signs that the market is starting to absorb the number of problematic properties on the market. Miami’s inventory has dropped more than 42 percent in the last 17 months, according to Southeast Florida Multiple Listing Service.
Nationwide, “raw unsold inventory” is 11.1 percent below a year ago, the lowest level since March 2006, NAR reports.
