Home sales plummet

A precipitous drop in home sale volumes has one area economist using the “d”-word, as sales fell 14% in July 2010 relative to last year, down from 15,762 homes sold in 2009 to 13,589 this year.

"The homebuyer tax credit expiration added a double dip to what has already been a harrowing ride in the Florida housing market," said Sean Snaith, an economist at the University of Central Florida, in response to the latest numbers.

Furthermore, each of three major metropolitan areas along the Gulf Coast saw an even worse market performance.

Monthly home sales fell 16% in Sarasota-Bradenton relative to July 2009, and were down 19% in Tampa-St. Petersburg-Clearwater. But while those two areas managed to buck the national trend -— nationwide sales fell 25% over the year — the Fort Myers-Cape Coral area was not so lucky, as homes sold fell 27%.

At the same time, statewide condominium sales picked up, with an 11% increase over the year. The Tampa market saw a slight increase in activity (4% up), and sales held steady in Sarasota (226 in 2010 versus 227 last year). But in Fort Myers, the number of condos sold fell 5%.

Going forward, UCF's Snaith said the state would need an uptick in hiring for its real estate market to recover. "A healthy housing market depends upon a healthy Florida economy, and in particular, an improving labor market," Snaith said in a release.