Local housing market rebounds heading into buying season

The local housing market started the year slow compared with last year but picked up the pace in March heading into the spring and summer buying season.

Realtors handled 186 sales of existing single-family homes in March in Alachua County, up 5.7 percent over the 176 sales in March 2013, Florida Realtors reported Tuesday. The median sale price of $169,287 was a 4.6 percent increase over the $161,900 price in March 2013.

February's 15 percent drop looks like an aberration compared with the positive sales growth of the past 12 months and might have to do with seasonal buying, said Gary Thomas, president of the Gainesville-Alachua County Association of Realtors.

“If it's like it used to be, May, June, July, August will be pretty rowdy, and September will be really slow,” said Thomas, broker of Re/Max Professionals.

He said he expects the very gradual improvement in sales and prices to continue.

Statewide sales were up 2.8 percent over the year, and the median sales price was up 7.1 percent to $173,000 from $161,500 a year ago.

Short sales have dropped 55 percent since March 2013 as rising values make fewer homes candidates for bank writeoffs. That has helped fuel more interest from sellers as they observe the return of more traditional market conditions, with new listings up 16.5 percent, according to Sherri Meadows, Florida Realtors president.

John Tuccillo, Florida Realtors chief economist, noted that market activity has moved up the price ladder, with “strong” decreases in days on the market for homes priced at more than $250,000.

U.S. sales of all housing types dropped 7.5 percent compared with March 2013 and were down 0.2 percent from February for the slowest pace of sales since July 2012, according to the National Association of Realtors. The median sale price was up 7.9 percent over the year to $198,500. Single-family home sales were down 7.3 percent over the year and the median price up 7.4 percent to $198,200.

NAR Chief Economist Lawrence Yun said sales should be stronger given the population growth and that he expects some improvement as a result of job creation and the return of shopping activity that was delayed by winter weather.

NAR President Steve Brown said tight credit and tight inventory in lower price ranges are holding back first-time buyers, but rising new-home construction means some owners will be trading up and adding more existing homes to the inventory.

Thomas said consumer confidence will be a deciding factor.

“Optimism makes builders build more and makes first-time home buyers get into the market,” he said. “Those two things need to happen to really pick it up.”

Alachua County townhouse and condominium sales rose from 41 last year to 43 in March, while the median sale price was up 38.5 percent to $90,000 from $65,000.

Florida condo sales dropped 5 percent to 9,580 over the year -- largely as the result of a 63 percent drop in short sales -- and the median price was up 17 percent to $140,000.