Lee County home sales go boom in July
By NAPLES — It was a bang up month for single-family home resales in Lee County in July.
Sales once again rose by more than 100 percent last month.
There were 1,570 sales, up from 768 in the same month a year ago, according to a report by the Florida Association of Realtors.
“This is not a new phenomenon. We have been over 100 percent for many months in a row,” said Brett Ellis, a Realtor with the Ellis Team RE/MAX Realty Group in Fort Myers.
Monthly numbers for Naples and Marco Island aren’t included in the statewide report.
Of all the metro areas tracked in the report, Fort Myers-Cape Coral saw the biggest percentage increase in singlefamily resales. But it also had the largest drop in home prices.
The median home price fell 43 percent to $89,000, down from $154,900 a year ago.
“Nationwide as well as in Southwest Florida we have a lot of first-time homebuyers and a lot of investors because they recognize the bargains,” Ellis said. “What we don’t have is move-up buyers.” An $8,000 federal tax credit for firsttime buyers is helping to drive sales at the lower end of the market. But there’s nothing to help the move-up buyer purchase a home. That’s why Ellis supports a move in Congress that could provide a $15,000 tax credit to buyers across the board, which he believes would spur sales of higher priced homes.
Condo resales also were strong last month in Fort Myers-Cape Coral. They increased by 101 percent to 349, up from 174 a year ago. The median price of those sales fell to $133,500, down 37 percent from $210,400 in the same month last year.
Statewide, single-family home resales rose in July for the 11th straight month. There were 15,882 sales, up 37 percent from 11,595 a year ago.
Florida Realtors also reported a 48 percent increase in condo resales.
“I think we’re on the road to recovery and even though most markets report they’ve seen the bottom, it’s going to be a long climb,” said Timothy Becker, director of the University of Florida’s Bergstrom Center for Real Estate Studies, in a state ment.
Florida’s median price for single-family home resales last month was $147,600. A year ago it was $193,800 — a 24 percent decrease.
Foreclosures and short sales — sales made for less than the bank is owed — continue to drag down selling prices.
“Historically low mortgage interest rates, affordable home prices and a large selection are encouraging buyers who’ve been on the sidelines,” said Lawrence Yun, a chief economist with the National Association of Realtors, in a statement.
“Activity has been consistently much stronger for lower priced homes. We expect a gradual up trend in sales to continue due to tax credit incentives and historically high affordability conditions.”
The U.S. housing market is rebounding faster than ex pected. The question is, can it last?
Single-family home resales in July posted the largest month ly increase in at least 10 years as first-time buyers rushed to take advantage of the tax credit, which expires this fall. Sales jumped 7.2 percent, beating ex pectations, the National Associa tion of Realtors reported.
“The housing market is back up and running and that is great news,” wrote Joel Naroff of Naroff Economic Advisors. Sales hit a seasonally adjusted annual rate of 5.24 million in July, up from a pace of 4.89mil lion in June. It was the fourth straight monthly increase and the strongest month since August 2007. Sales had been expected to rise to an annual pace of 5 million, according to economists surveyed by Thom son Reuters.
The risks, however, are unemployment, mortgage rates and a homebuyer tax credit that is over at the end of November. The last one could be a doozy because first-time buyers are snapping up one out of every three homes. First-time buyers get a credit of 10 percent of the purchase price of a home, up to $8,000. Singles must earn less than $75,000, and couples less than $150,000. The real estate industry is lobbying to have the credit extended, but it’s unclear if Congress will be swayed.
“I would not be at all surprised to see a dip at the end of the year once the tax credit expires,” said Robert Dye, senior economist with PNC Financial Services Group.
The home sales report was an other sign that the U.S. economy is on the verge of a long-awaited recovery after enduring a brutal recession and the worst financial crisis since the Great Depres sion.
Economic activity in both the U.S. and around the world ap pears to be leveling out and “the prospects for a return to growth in the near term appear good,” sad Federal Reserve Chairman Ben Bernanke.
But fallout from the reces sion will linger for some time. In July, unemployment rose in 26 states and fell in 17, the Labor Department reported Friday. That is driving up foreclosures, which are not expect ed to level off until sometime next year.
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