The National Association of Realtors announced this week that existing home sales plunged more than 27 percent -- the largest monthly drop since the organization began keeping records in 1968. Despite that steep drop, local realtor organizations think that Central Florida's real estate values show signs of having stabilized.

Economists worry that July home sales dropped despite record-low mortgage rates and the bargain prices to be had. High unemployment and the expiration of federal homebuyer tax credits are generally considered to be responsible for the slow pace of sales.

In Florida, sales of existing single-family homes fell 14 percent. In Flagler and Volusia counties, those sales were down 12 percent.

Although prices for these houses dropped again in July, it wasn't enough to overcome the lack of tax incentives, tight credit markets, and unemployment. The median sales price for existing single-family homes in Volusia and Flagler counties was $122,500, a drop of 7 percent from  a year ago, when the median price was $131,600.

This was bad news -- it ended an upward trend in year-over-year home prices that had lasted for 20 consecutive months. Nevertheless, it wasn't unexpected to realtors.

"This was not unanticipated. It's not a surprise," Scott Nieminen, head of the Flagler County Association of Realtors, told the Daytona Beach News-Journal. "It's the lack of the tax credits."

Good News: Condo Sales Are Up Statewide

Volusia and Flagler realtors reported continued strong sales in the condo market. July brought in the second-highest monthly condo sales total since the Florida Realtors trade association began tracking sales of condominiums in 2006. However, the median sales price was down 31 percent.

"They are mostly second-home buyers and retirees renting them out who are taking advantage of the low prices," said condo specialist Lynn Byrne of CenterPointe Realty.

Statewide, July condo sales were up by 11 percent.

Pending Real Estate Sales in Central Florida Mostly Trending Well

The most promising news is that realtors think that the trends in pending home sales showed stabilization, both in the pace of home sales and in real estate values.

"The numbers show we are pushing up from the bottom and if the fence sitters wait any longer, they will miss out," said Nieminen.

Pending sales in West Volusia were up 42 percent in July over last year, and Flagler County's pending sales were up 4 percent over July 2009.

Flagler County homes spent only about 185 days on the market this year compared with an average of 221 days last year. Last July, West Volusia homes stayed on the market for an average of 168 days, while this July it was down to only 120 days.

According to the West Volusia Association of Realtors, the ratio between a seller's expected price and the actual price they received was better, as well.

The percent of their asking price sellers actually received in West Volusia grew from only 85.5 percent to 87 percent. In Daytona Beach, the percentage rose from 91 percent in to 92 percent.

The news was even better in Flagler County, where sellers received 94 percent of what they expected this year, up from 91 percent last year.

Related Resource:

"July existing-home sales drop" (Daytona Beach News-Journal, August 25, 2010)