Used-home sales continue grow, prices continue fall

By Palm Beach Business.com Staff

DELRAY BEACH — Sales of used homes continued to improve in February, but so did the deep discounts.

The Florida Association of Realtors reported Monday that used home sales in Palm Beach County numbered 532 in February, compared to 401 a year ago — an increase of  33 percent.

At the same time, the median price plummeted to $228,100 from $344,600 in February 2008, a decline of 34 percent.

Condo sales showed the same pattern: 483 Palm Beach County condos sold in February, with a median prices of $101,900, compared to 438 sales with a median price of $159,300 a year ago.

Statewide, February sales of used homes increased to 9,858 from 8,161 a year ago, a gain of 20 percent, according to FAR. The median price plunged to $141,900 from $199,300 a year ago, down 29 percent.

The median is the midpoint; half the homes sold for more, half for less.

Industry analysts with the National Association of Realtors said discounted sales, including a large number of foreclosures, pushed down the median price.

NAR also expects the federal economic stimulus package, combined with low interest rates, to boost sales by about 900,000 over the year. Most likely the impact won’t be felt before summer, however.

"Some markets appear to have reached the tipping point of accelerating home buying," said NAR Chief Economist Lawrence Yun. "Improvement from the economic stimulus isn't likely to show as closed home sales before summer, although we may see an earlier lift from lower mortgage interest rates."

Elsewhere in South Florida:

Broward used-home sales increased by 39 percent in February to 500 from 360 a year ago, with the median price dropping 30 percent to $214,400 from $307,700.

In Miami-Dade, sales increased 65 percent to 409 from 244; the median price fell 36 percent to $195,500 from $306,100.