By Susan R. Miller

October 24, 2008

There’s a glimmer of hope in an otherwise dismal day for economic news: Florida’s existing home sales rose in September. But the good news is tempered by the fact that prices continue to fall.

Last month saw a 24 percent increase in home sales over September a year ago. Condo sales increased 11 percent statewide, according to the Florida Association of Realtors.

“This is a clear sign that the significant price declines that have occurred across the state are leading to a more rapid absorption of the housing inventory,” said Sean Snaith, an economist and director of the University of Central Florida Institute for Economic Competitiveness.

However, he cautioned that the increase is inflated by the fact that there was a sharp decline in sales in September 2007.

“That was the month following the initial wave of global fallout precipitated by the subprime mortgage meltdown that roiled markets in August 2007,” Snaith said.

In South Florida, Fort Lauderdale reported 611 existing home sales in September, up sharply from the prior year’s 401 sales. The median sales price fell 25 percent, to $259,300 from $345,200.

Miami reported 410 existing homes sold in September, a 14 percent increase from 360 home sales during the same period last year. The median sales price declined 26 percent, to $274,600 from $372,300.

West Palm Beach-Boca Raton reported 522 homes sold in September, compared with 471 homes a year ago, an 11 percent increase. Median prices, however, were down to $292,200 from $355,300, an 18 percent drop.

Near South Florida:

• In Fort Myers-Cape Coral, home sales skyrocketed 128 percent, to 746 from 327. But, prices plunged 39 percent, to $141,400 from $231,600.

• In Fort Pierce-Port St. Lucie, home sales were up 45 percent to 374 from 258. The deals were to be had, with prices plummeting 32 percent, to $138,000 from $202,000.

• In Melbourne-Titusville-Palm Bay, home sales were up 41 percent, to 430 from 304. Prices were down 24 percent, to $143,900 from $189,700.

• In Marco Island, home sales were up 44 percent, to 23 from 16. Prices held steady at $450,000.

• Punta Gorda was among the few areas that experienced a decline in existing home sales, to 153 from 189, down 19 percent. Prices also dropped 19 percent, to $136,900 from $170,000.

Statewide, 10,817 existing homes sold last month, up 24 percent from the 8,725 homes sold during the same period last year. The median sales price for existing homes last month was $175,100, down 22 percent from the same time last year, when the median sales price was $224,700.

Condo sales also ticked up slightly, but prices remain depressed.

In Fort Lauderdale, condo sales jumped 38 percent to 549 units, up from 397. But, prices decreased 26 percent, to $129,600 from $174,600.

In Miami, condo sales slipped 1 percent, to 353 from 355. Median prices were down 23 percent, to $212,200 from $275,000.

In West Palm Beach-Boca Raton, condo sales increased 35 percent, to 487 from 360. Median prices were down 22 percent, to $139,800 from $180,000.

Near South Florida:

• In Fort Myers-Cape Coral, condo sales were up 50 percent, to 153 from 102. But, prices dropped 17 percent, to $185,000 from $224,000.

• In Fort Pierce-Port St. Lucie, condo sales remained flat at 50. Prices continued their downward spiral, to $140,000 from $225,000, a 38 percent drop.

• In Melbourne-Titusville-Palm Bay, condo sales jumped 55 percent, to 102 from 66. Prices were down 13 percent, to $153,300 from $176,700.

• In Marco Island, 29 condos were sold, up from 23. Prices were down 4 percent, to $337,500 from $350,000.

• In Punta Gorda, condo sales were up – to 17 from 14 in the same month last year. But, prices took a big hit, down 53 percent to $85,000 from $180,000 a year ago.

Statewide, 2,878 units sold in September, compared with 2,595 in September 2007. The median sales price of condos dropped 22 percent, to $153,800 from $197,000.

Low home prices and low interest rates also are luring buyers back into the market nationwide.

Existing home sales, which include single-family homes, townhomes, condos and co-ops, increased 5.5 percent to a seasonally adjusted annual rate of 5.18 million units in September, up from 4.91 million in August and 1.4 percent higher than the 5.11 million-unit pace in September 2007, according to the National Association of Realtors.

The national median price for all existing housing types was $191,600 in September, down 9 percent from a year ago, when the median was $210,500.

Existing home sales in the South rose 2.2 percent in September, to 1.9 million, but remained 7.8 percent below the previous year. The median price in the South was $167,200, down 4.1 percent from a year ago.

"Credit tightened at the end of September, but the improvement demonstrates that buyers who've been on the sidelines want to get into the market to make a long-term investment in their future," NAR President Richard F. Gaylord said.