Home sales drop 31% in Broward, but median price rises

by Paul Owers

05/16/06

Opinions vary on where the South Florida housing market is headed, but nearly everyone seems to agree on one thing: Buyers are in no hurry.

Sales of existing single-family homes fell 31 percent in Broward County during the first quarter of 2006, compared with the same period last year, the Florida Association of Realtors said Monday. The median price rose 14 percent to $366,600. The median means half sold for more, half for less.

"This is the slowdown, but I'm not a doom-and-gloom guy," said David Dweck, a Broward agent and founder of the Boca Real Estate Investment Club. "People are just going to have to get used to this as a normal market."

With more leverage than they've enjoyed in years, buyers are selective. Many held off making offers during the January-to-March period, waiting to see whether Florida legislators would drastically alter the state's property-tax structure. Some homeowners say they can't afford to buy again because they would be slammed with huge property tax bills when they move.

Legislators decided against making any changes in 2006. Tired of waiting, some buyers will go ahead and make offers.

But others will resist, hoping prices will fall even more and that the homeowners insurance crisis will be resolved.

"People are not going to see much relief on insurance. They're not going to see much relief on their taxes. I don't see [prices] going much lower," said Donn Roebke, an agent for Illustrated Properties in Wellington. "This is the best time for someone to go ahead and purchase a home."

The spring and summer typically are peak times for selling homes, and agents say they expect sales to increase this summer compared with the past few months.

"A resurgent market? I think that will be out much farther than the immediate future," said Beverly Rothstein, an agent with Exit Team Realty in Coral Springs.

Inez Fleming, an agent for Delray Beach-based Tauriello & Co., said she hasn't worked with many buyers in 2006 and said people might be waiting to see whether the region gets hit with a hurricane for the third year in a row. Hurricane season starts June 1 and ends Nov. 30.

The number of homes for sale has increased dramatically across South Florida since last year, giving buyers plenty of choices.

"You can take your time now and not rush into anything and probably get a little more of what you want," said Sam DiCrescio, 60, a Palm Beach Gardens resident who recently started looking for a home.

Broward County condominium sales fell 26 percent during the first quarter, but the median price rose 25 percent to $209,800.

Existing single-family homes in Palm Beach County dropped 32 percent in the quarter, and the median price increased 8 percent to $392,900. Sales in Miami-Dade County dropped 9 percent, while the median price increased 21 percent to $376,900.

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