May used-home sales drop sharply

DELRAY BEACH — Used home sales in Florida continued to plummet in May, dropping to a level not seen in five years, according to the Florida Association of Realtors.

Statewide, 12,607 used homes sold in May compared with 19,072. That’s a drop of 34 percent.

The median price — half the homes sold for more, half for less — dropped five percent to $237,000 from $250,000 a year ago.

Miami-Dade produced the most extreme numbers in South Florida. The number sales dropped to 494 from 875 a yea ago, a slide of 44 percent. The median price, however, gained 6 percent to $401,100 from $379,700 a year ago, an indication that higher-end homes moved better than those more moderately priced.

In Palm Beach County, the number of homes sold dropped 25 percent to 741 from 982; the median price fell 1 percent to $387,800 from $391,000 a year ago.

Broward County saw a drop of 28 percent to 574 from 862 a year ago. The median price fell 3 percent to $367,700 from $379,800.

The National Association of Realtors reported a 5 percent increase in inventories in May, creating the biggest backlog of homes for sale in 15 years.

Home sales are projected to move in a relatively narrow range with agradual upturn becoming more pronounced by the end of 2007, according to NAR's latest market outlook. "Overall housing levels are historically strong, but sales remain sluggish compared to the recent boom," says NAR Senior Economist Lawrence Yun