Florida Retirement Buzz

Statewide, sales of single-family existing homes totaled 37,709 during the second quarter of 2007, a decrease of 30 percent compared with 53,723 homes sold during the same period of 2006.

The statewide existing-home median sales price was $239,200 in the second quarter down 4 percent from $250,400 last year.

The director of the housing research firm Metrostudy in West Palm Beach said there are two reasons for the steep sales decline.

“People are afraid to buy when they perceive the market is going down, because they don’t want to lose equity,” “Secondly, sellers have been very stubborn about lowering their prices.” A trite piece of conventional wisdom!

In the West Palm Beach-Boca Raton area, sales were down 21 percent and the median price rose 3 percent to $394,100. Home sales in the Melbourne-Palm Bay area decreased 18 percent, while the median price stood at $194,100.

Sales of existing Treasure Coast homes dropped in the second quarter of the year as the median sale price continued to level off. [The “Treasure Coast” refers to Martin, St. Lucie and Indian River Counties.] A report released on 8/15/2007 by the Florida Association of Realtors showed 921 existing single-family homes sold in the Fort Pierce-Port St. Lucie Metropolitan Statistical Area, which includes; Stuart, during the second quarter of 2007. That was down 40 percent from 1,523 during the same period last year. Meanwhile, the median price of the homes that did sell during the quarter was $236,300, a 7 percent dip from $254,500 in the same period last year.

“We continue to be encouraged that Martin County numbers are much better than the statewide average and even better than the Fort Pierce-Port St. Lucie Metropolitan Statistical Area,” one broker said. “Inventories remain high, but the prices appear to have leveled off.”

0n the flip side, the condominium market saw an improvement in sales and prices. The association said sales of Treasure Coast condos increased 21 percent in the quarter with Realtors selling 266 units. The median price was at $204,800. up 1 percent from a year ago.

Separately, foreclosure paperwork began on 2,322 homes along the Treasure Coast last month, according to the RealtyTrac Midyear Metropolitan Foreclosure Market Report.

In St. Lucie County, 1,601 homes were in foreclosure proceedings last month, the most on the Treasure Coast. Indian River County had 406 properties registered, while the least amount of foreclosures in the tri-county area was in Martin County with 315.

If you are currently in the market for your new Florida retirement home, this data reinforces the need to make your bids (absurdly) low. Twenty percent below asking price could be a good starting point for a negotiation. Don’t be cowed by your real estate broker who as you knows gets a percentage of the sales price as his/her pay!