Home sales edged lower in Florida at the beginning of the year, resulting in a slight drop in home prices, according to a recent report from Florida Realtors.
The report found that home sales dropped 5.5 percent in January from the same month in 2011. As a result, real estate data indicates median home prices in the Sunshine State fell 4.8 percent to $129,000. However, despite the decreases in these sectors, there were some signs of improvement.
"Even though closed sales are down from a year ago, there are two really bright spots in Florida’s housing market," said Florida Realtors chief economist John Tuccillo. "One is a significant increase in pending sales."
According to the report, pending home sales in Florida have increased consistently since May 2011, but tightening lending regulation continues be an obstacle in turning pending sales into closings.
Additionally, the report found that the state's inventory, which is now close to a level that would result in a balanced market. The report noted that the inventory of single-family homes, condominiums and townhouses thinned to a 6.4-month supply.