ECAR stats: Buyers gobble up homes for sale in November

“Buyers seem to agree that now is the time to buy, and have taken this advice to heart.” — ECAR president Mary Anne Windes.

The real estate market was no turkey in November as the latest Florida Realtors' stats show that buyers locally, as well as throughout the state, continued to gobble up existing housing for sale.

Sales of existing condos more than doubled, with the state recording a 111 point jump and the Emerald Coast 117 percent, as compared to Nov. 2008. Sales of existing single-family homes also surged, with the local market's gain of 78 percent outpacing the state's average by 17 points.

Calling the bustling activity in the existing single-family home market “the hot news of the day,” Emerald Coast Association of Realtors president Mary Anne Windes said buyers have come to realize the value of the local market's offerings.

“All I can say is buyers seem to agree that now is the time to buy, and have taken this advice to heart,” she said, pointing out that  “the median sales price dropped a mere 8 percent as compared to last year, yet the number of single-family homes sold rose by 78 percent.” 

When asked if the original Nov. 30 deadline for the first-time homebuyers' $8,000 tax credit spurred many buyers into action, Windes replied, “I can't guarantee that the tax credit is responsible, but something caused these buyers to move in November.”

The deadline for the first time homebuyers' tax credit has since been amended to include buyers who sign sales contracts between Nov. 7, 2009 and April 30, 2010, providing they haven't owned a primary residence in the past three years.

And a new tax credit was passed by the U.S. Congress allowing repeat buyers— owners who have used their home being sold or vacated as a primary residence for at least five consecutive years of the past eight — to be eligible for up to a $6,500 tax credit when they buy a new one.

While there has been speculation that the homebuyers' tax credits were indeed fueling the existing single-family home market in November, Windes and other Realtor professionals say condos are typically purchased for use as a vacation or investment property, rather than as a primary home.

“Condominiums are typically purchased by investors or higher-income families to be used as a second home,” said Windes. Still, the recent uptick in condo sales comes as no surprise to at least some experts in the field.

“As the economy continues to recover, I expect to see sales of vacation homes pick up,” predicted Rick Harper P.H.D., UWF Haas Center for Business Research and Economic Development, while discussing the market in Nov. 2009.

Although the Emerald Coast market had the most sizeable increase in Northwest Florida, existing condo sales also jumped in neighboring areas, with Panama City and Pensacola each reporting gains of 53 and 76 percent respectively. 

Likewise, sales of existing single-family homes were also up in these nearby markets, increasing by 24 percent in Panama City Beach and 73 percent in Pensacola.

This article was contributed to The Log by the Emerald Coast Association of Realtors.