Home sales signal upturn

Real estate agents say this is what a recovery feels like.

Sales of existing homes in Florida and the Tampa Bay area shot up more than 20 percent in March as homebuyers rushed to take advantage of soon-to-expire federal tax credits.

Data released Thursday by Florida Realtors shows 2,782 homes sold in March in the Tampa-St. Petersburg-Clearwater metro area.

That's a 21 percent increase from the same period last year and more than double February's yearly increase of 10 percent.

"People are starting to look at real estate as an investment again," said Denis Romero, an agent with Coldwell Banker in Palm Harbor.

"There's not as much fear of falling values. People feel the market is turning and they need to grab deals while they can," Romero said.

The yearly sales increase was the largest in the Bay area since November, when sales jumped 34 percent. The original tax credit was set to expire then.

March saw 732 more sales than February.

Homes prices showed more signs of stabilization. The median sale price in March was $131,400.

That's down 3 percent from the same month last year but up from February's median of $128,100.

"Many of my clients are buying condos for cash," Romero said. "Prices may decline a bit in some areas, but I think they're stabilizing for the most part."

Florida's existing home sales rose in March, too, marking 19 months of consecutive sales increases.

The state's existing home sales climbed 24 percent in March as 16,294 homes changed hands, compared to 13,090 last March.

The median sale price was $137,000, down 3 percent from last March's median of $141,300.

But just like Tampa, the median sale price rose from February's $131,300 median.

Mike Larson, an analyst with Weiss Research, said "the healing process is under way."

"The tax credit is helping juice up the numbers a bit, but I don't think it's all because of the tax credit," Larson said. "There are reasons to be optimistic here. I don't think it will be a vigorous recovery, but the market is improving."

Other noteworthy Florida data included the Sarasota-Bradenton area, where sales increased 38 percent and the median price rose 9 percent to $163,800.

In Orlando, sales jumped 36 percent, but the sale price fell 13 percent to $132,200. Miami saw sales rise 17 percent and prices fall 4 percent.

There was good housing news on a national level, too.

Sales of previously occupied homes climbed more than expected in March after three straight months of declines, the National Association of Realtors said.

The housing market benefited from government incentives that drew in buyers.

Purchases jumped 6.8 percent to a seasonally adjusted annual rate of 5.35 million last month, the highest level since December. The median sale price was $170,700, about the same as a year earlier.

Some economists expect healthy sales to continue, but they caution that a clearer picture of the housing market will emerge after federal tax credits expire at the end of this month.

"The spring selling season will be a success and probably the most active we're seen in years," said Stuart Hoffman, chief economist at PNC Financial Services Group.

Realtors thank the tax credit for increased sales, and some worry about what will happen to the market when they expire.

First-time homebuyers are eligible for up to $8,000, and some repeat buyers can get a $6,500 credit.

Contracts must be signed by April 30, and deals must close by June 30.