Home sales re= bound encourages area Realtors

By Donna Kelly News Chief staff

Published: Thursday, February 26, 2009 at 4:01 a.m.
Last Modified: Thursday, February 26, 2009 at 8:05 a.m. <= /p>

WINTER HAVEN - While the economy continues to flounder, Florida Real= tors are feeling a bit more optimistic now that housing sales are beginning to r= ise.

"Realtors are starting to be more positive," said Pauline Dickson, the association executive for the East Polk County Association of Realtors.

According to statistics released Wednesday by the Florida Associatio= n of Realtors, existing single-family home sales in January were up 24 percent f= rom last year, jumping from 6,810 homes sold in January 2008 to 8,450 last mont= h. Polk County showed a 15 percent increase, with 212 homes sold this year, 28 more than a year ago.

However, home sales in Polk County actually dropped over the course = of a month from 249 in December 2008 to 212 in January 2009, a decrease of 14,9 percent.

The median price of a home in Polk County decreased 26 percent, from $149,400 in January 2008 to $110,000 last month. The median is the midpoint, with half the sales falling above the figure and half falling below it. Statewide, this figure fell from $206,900 to $139,500, a 33 percent decreas= e.

The national median sales price for existing homes in December 2008 = was $174,700, down 14.8 percent from a year earlier.

"Many people are looking at today's market and seeing opportuni= ties to find the home or business they've always wanted," said 2009 FAR President Cynthia Shelton, in a press release from the association. "W= ith a range of available housing options, historically low mortgage interest ra= tes and affordable prices, buyers who have been hesitant before should take a closer look at the current opportunities for homeownership."

Phyllis Collins of Village Realty of Winter Haven said home sales are increasing for several reasons - increased buyer's demand, a decrease in ho= me prices, lower interest rates and fewer homes available on the market.<= /o:p>

"People haven't wanted to buy because they were waiting to go to the bottom, and I think we're near there," Collins said.

As far as the existing homes on the market, Collins said those have decreased from 2,155 a year ago to the current 2,065 listed now.=

"But what is more important now is the reduction of the average sales price," Collins said, adding that in East Polk County this dropp= ed from $164,627 to $124,354.

Collins said there are more houses in foreclosure now.

"The good news is that now these homes can be purchased with the title free and clear," she said.

This is making it easier to sell these homes and turn over the housi= ng inventory.

"If a person owes more than the current value of the home and - because of loss of job or health - can't afford it, a bank will put it back= on the market at the current market value," Collins said. "This keeps the house, deed and title clear."

"With the right information, you can stop a foreclosure," = said Collins, who has completed training in this type of sale. "I'm very excited because we have the tools now to help sellers who have lost their j= obs or become ill. With the right tools, you can do this."

But despite the positive statistics in home sales, local economist Gordon Kettle remains very cautiously optimistic.

"This is not signaling any dramatic turn in the housing market," said Kettle, a professor at Polk Community College. "Dur= ing the past couple of years, we have seen steep declines in housing prices, wh= ich have fallen between 25 percent to as much as 50 percent in Polk County, depending on the location and type of home."

And many of the lower-priced houses are those that have been through= the foreclosure process and have re-entered the market.

"Attractive prices have enticed some buyers off the fence and b= ack into the market, which has caused some home sales to rise," Kettle sai= d.

Like Collins, Kettle said that the decrease of homes on the market - which he said peaked at 5,500 in early 2008 and decreased to the current 4,= 900 - is a good sign.

"The good news is that it appears the dynamics are starting to shift in the housing market and we are beginning to move in a more positive direction," he said.

"The bad news, though, is that conditions are still very weak," Kettle said, adding that he expects houses in Polk County to lo= se an additional 10 to 15 percent of their value before they begin to stabiliz= e.

"There are going to be some tough times ahead for many Polk Cou= nty residents before things really begin to improve," Kettle said.