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Press Release
Source: Florida Association of Realtors(R)

Economists See Continued Strong Demand for Florida Real Estate

Monday November 22, 11:34 am ET

ORLANDO, Fla., Nov. 22 /PRNewswire/ -- Driven by strong out-of-state demand, Florida residential home sales are headed for a record year in 2004, according to economists and real estate experts.
Despite six weeks of local market disruptions caused by Hurricanes Charley, Frances, Ivan and Jeanne, statewide sales are likely to rise 15 percent over 2003, while median sales prices keep pace, according to Russell Grooms, 2004 president of the Florida Association of Realtors® (FAR).

"Sales activity remains strong in virtually all Florida markets," says Grooms. "Buyers relocating from other states and other countries continue to comprise a significant portion of Florida's overall sales."

For the first nine months of 2004, Florida recorded 184,760 sales of existing single-family homes, a 15 percent increase from the 161,055 sales during the same period of 2003. The median sales price for the period was $179,900, up 16 percent from $155,100 in 2003.

Economists who follow Florida's real estate market agree there has been no slowdown in demand following the hurricanes of August and September.

"We have seen no impact on either new homes or resales," says Hank Fishkind, president, Fishkind & Associates, Orlando. "We see continued strong growth in Florida's housing markets."

Mike O'Connell, an economist with the South Florida Regional Planning Council in Hollywood, Fla., developed a computer model for the state that studies the economic impact of hurricanes on Florida. While hurricanes can accelerate long-term development trends already taking place in a community, they aren't likely to change the market, he says. Following several years of high demand and record home sales, the outlook for Florida's real estate industry remains strong.

Still, the hurricanes may affect some out-of-state buyers' decisions regarding where to purchase in Florida, acknowledges Lewis Goodkin, president, Goodkin Consulting, Miami. "People may rethink moving to areas within Florida that they perceive as particularly vulnerable to hurricanes," he says. "But there is no question that Florida, as a whole, remains an attractive warm- weather destination."

The Florida Association of Realtors, the voice for real estate in Florida, provides programs, services, continuing education, research and legislative representation to its 120,000 members in 70 boards/associations.

Editor's Note: This is Part 3 in a series of media releases on Florida's real estate market from the Florida Association of Realtors®.

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Source: Florida Association of Realtors(R)