Florida Home Sales Surge; Law of Demand Works
Florida’s existing home sales rose in December, making it the fourth consecutive month that sales activity demonstrated gains in the year-to-year comparison, according to the latest housing data released by the Florida Association of Realtors (FAR). December’s statewide sales also increased over November’s figures in both the existing home and existing condo markets. Existing home sales rose 27% last month with a total of 11,053 homes sold statewide compared to 8,712 homes sold in December 2007, according to FAR (see updated, corrected chart above). December’s statewide existing home sales were 28.9% higher than November’s statewide sales.
Sixteen of Florida’s twenty metropolitan statistical areas (MSAs) reported increased existing-home sales in December; 11 MSAs also showed gains in condo sales, marking the sixth month in a row that a number of markets have reported increased sales activity.
Among the state’s large to medium-size markets, the West Palm Beach-Boca Raton MSA reported a total of 638 homes sold in December compared to 467 homes a year ago for a 37% increase.MP: From what you hear in the media, it would seem like we are years away from a real estate recovery, when the statistical data suggest otherwise. Falling home prices and falling mortgage rates are fueling a real estate recovery in states like Florida. In other words, markets are working. As the Law of Demand predicts, demand curves slope downward, and when home prices fall, the number of homes sold increases.