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Where prices have dropped, homes start to sell
By Alison Markham, Broker-Associate, GRI, Realtor® | August 6, 2008
By James Thorner, Times Staff Writer
Published Thursday, April 24, 2008 10:19 PM
Back in March 2006, when home sales in Tampa-St. Petersburg-Clearwater were taking an icy plunge of 26 percent, Ocala, Tallahassee, Gainesville and Jacksonville were still basking in the warmth of rising home sales.
But those cities couldn’t insulate themselves from the chill of the housing market forever. They’re now involuntary passengers on a frosty bobsled to the bottom.
March home sales in Ocala were down 50 percent. Gainesville suffered a 34-percent drop. Jacksonville’s decline was 37 percent, Tallahassee’s 29 percent.
Meanwhile, the Tampa Bay area’s March home sales, though distorted by the omission of the latest numbers from Pinellas County and west Pasco County, showed an 11 percent drop. Sarasota’s drop was 15 percent, less than a third of Ocala’s.
An explanation is close at hand. Cities in which home sellers have relented on price seem to be recovering their footing. Where prices remain high, the cold spell is prolonged.
Just look at Gainesville. Its median home sales price in March was nearly $200,000. Tampa’s was 10 percent lower at $180,000. Housing collects a premium in the appealingly hilly university town, but Gainesville is learning the limits of premium pricing.
Fort Pierce-Port St. Lucie, on Florida’s east coast, illustrates the power of value pricing. Homes depreciated a near-catastrophic 29 percent the past year. But guess what? Realtors reported sales were up 14 percent in March.
Miami and Ocala seem to offer exceptions to the rule. Miami’s prices have fallen steadily. Yet the city’s home sales were worst hit in the state, down 56 percent. Dig more deeply: The city’s median home price is a lofty $338,000, even though its average wage is only $1,800 higher than Tampa’s.
Ocala’s median home price is $145,000, the lowest among 20 metro areas in the state. But it’s low for a reason. Best known for horse farms, its economy is poorly developed compared to Tampa’s. That didn’t stop speculators from buying up houses near Ocala. Many can’t unload their investments.
Maybe sellers, real estate agents and banks should adopt a new motto: Lower your price to avoid the ice.
James Thorner can be reached at thorner@sptimes.com or
(813) 226-3313.
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