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Fla.’s Aug. Housing: Inventory, Median Prices Rise

Fla.’s single-family median price up 15% ($407K), condo median up 20.8% ($305K). Chief Economist: Inventory is growing but pace has slowed.

ORLANDO, Fla. – Florida’s housing market reported increased inventory (active listings) and higher median prices in August 2022 compared to a year ago, according to Florida Realtors®’ latest housing data. Rising mortgage interest rates, inflation and other economic factors continue to impact sales, however.

“We are seeing signs that Florida’s housing market is changing, as for-sale inventory continued to increase in August,” says 2022 Florida Realtors President Christina Pappas, vice president of the Keyes Family of Companies in Miami. “The much-needed gains in active inventory will hopefully ease the pressure of rising home prices for buyers. Statewide, homes are continuing to go under contract quickly: The median time to contract statewide for single-family existing homes in August was 16 days compared to nine days during the same month a year ago. The median time to contract for existing condo-townhouse units was 17 days compared to 15 in August 2021.

“Buying or selling a home is a big decision. Consumers can turn to a Realtor for help in understanding local market conditions.”

Last month, closed sales of single-family homes statewide totaled 24,877, down 15.8% year-over-year, while existing condo-townhouse sales totaled 10,000, down 20.3% over August 2021, according to data from Florida Realtors Research Department in partnership with local Realtor boards/associations. Closed sales may occur from 30- to 90-plus days after sales contracts are written.

While inventory is growingFlorida Realtors Chief Economist Dr. Brad O’Connor pointed out that the rate of that growth “has slowed considerably.”

He said, “At the end of August, there were nearly 64,000 single-family homes actively listed for sale in Florida’s multiple listing services (MLSs), which is 70.4% more than were listed a year ago and 137% more than were listed six months ago at the end of February. But the number of active listings now is still close to 26% lower than at this time three years ago, prior to the pandemic. What’s more, the rate of growth in single-family inventory has slowed considerably in August, rising only 4% compared to the prior month. By contrast, on a month-over-month basis, inventory had risen by 33% in June and 17% in July.”

One of the reasons for the pull-back in inventory growth is fewer new listings, he explained.

“In August, new listings of single-family homes were down by 3% compared to a year ago, whereas they had been up by more than 3% in July,” O’Connor said. “New listings of condo-townhouse units were down 10.6% in August. This trend is expected to continue for the time being as some homeowners are averse to listing in this uncertain economic environment.”

The statewide median sales price for single-family existing homes last month was $407,000, up 15% from the previous year. Last month’s statewide median price for condo-townhouse units was $305,000, up 20.8% over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.

On the supply side of the market, the trend of more inventory (active listings) continued, rising year-over-year in August. The supply of single-family existing homes increased to a 2.4-months’ supply while existing condo-townhouse properties are at a 2.2-months’ supply.

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 5.22% in August 2022, significantly higher than the 2.84% average during the same month a year earlier.


 

2021 Fla. Housing Market: Strong Gains Despite COVID

Florida Realtors’ Dec., 4Q and 2021 data: Year-end single-family sales up 12.9%, median prices up 20% ($348K); condo sales up 34.2%, prices up 17.2% ($252K).

Despite the ongoing COVID-19 pandemic and continuing economic stressors over the year, Florida’s housing market wrapped up 2021 with more sales, higher median sale prices and more new listings compared to 2020, according to the latest housing data released by Florida Realtors®.

Year End 2021

Florida Realtors® Chief Economist Dr. Brad O’Connor pointed out that 2021 was a notable year for the state’s housing market.

In all, there were over 528,000 total sales of existing homes (all types) in 2021 – an increase of 19% over 2020’s total,” he says. “The dollar volume of these sales totaled nearly $241 billion, which, because prices also swelled in 2021, represented an increase of over 48%.”

Statewide closed sales of existing single-family homes totaled 350,516 at the end of 2021, up 12.9% compared to the 2020 year-end level, according to data from Florida Realtors’ research department in partnership with local Realtor boards/associations. Closed sales may occur from 30- to 90-plus days after sales contracts are written.

The statewide median sales price for single-family existing homes at year’s end was $348,000, up 20% from the previous year. The median is the midpoint; half the homes sold for more, half for less. New pending sales for existing single-family homes rose 5.7% at the end of 2021 compared to the previous year, while new listings for single-family homes were up 7.1% from a year ago.

Looking at Florida’s year-to-year comparison for sales of condo-townhouses, a total of 160,177 units sold statewide in 2021, up 34.2% over 2020. The statewide median price for condo-townhouse properties at the end of the year was $252,000, up 17.2% from the previous year. New pending sales for condo-townhouse units for the end of 2021 increased 29.2% compared to a year ago, while new listings for condo-townhouses rose 5.5% from year-end 2020.

Statewide, the number of cash sales doubled year-over-year in both property type categories at the end of 2021, up 53.2% for single-family existing homes and 50.2% for condo and townhouse units.

According to Florida Realtors’ data, at the end of 2021, in December 2021 and also for 4Q 2021, inventory (active listings) for single-family homes stood at a 1.0-months’ supply, while inventory for condo-townhouse properties was at a 1.3-months’ supply.

“Inventory levels at year’s end were dangerously low in both property type categories,” Dr. O’Connor says. “With inventory as low as it is now, early 2022 isn’t looking so great for prospective buyers in either property type category. Current homeowners, however, continue to have the opportunity of a lifetime in the strongest seller’s market in ages.”

The interest rate for a 30-year fixed-rate mortgage averaged 2.96% for 2021, down significantly from the previous year’s average of 3.11%, according to Freddie Mac.

December 2021

In December, closed sales of single-family homes statewide totaled 29,988, down 1.6% from December 2020, while existing condo-townhouse sales totaled 12,789, a slight uptick of 0.3% year-over-year, according to Florida Realtors’ data.

The statewide median sales prices for both existing single-family homes and condo-townhouse properties rose year-over-year in December. The statewide median sales price for single-family existing homes was $373,990, up 21% from the previous year. Meanwhile, the statewide median price for condo-townhouse units was $285,000, up 23.9% over the year-ago figure.

Statewide, cash sales increased year-over-year in both property type categories in December, up 27.5% for single-family existing homes and 13.8% for condo and townhouse units.

4Q 2021

Statewide closed sales of existing single-family homes totaled 85,157 in the fourth quarter of 2021, down 1.6% compared to the year-ago figure, according to Florida Realtors’ data. The statewide median sales price for existing single-family homes for 4Q 2021 was $365,000, up 19.3% from 4Q 2020.

Looking at Florida’s year-to-year comparison for sales of condo-townhouses, a total of 35,820 units sold statewide in 4Q 2021, remaining at relatively the same level compared to the same period a year earlier (down 0.1%). The statewide median price for condo-townhouse properties for the quarter was $272,000, up 20.4% over the previous year.

Cash sales increased year-over-year in both property type categories in 4Q 2021, up 31.2% for single-family existing homes and 13.3% for condo and townhouse units.

Looking ahead in 2022, Chief Economist O’Connor said mortgage rates trends will impact ongoing market conditions.

“With the Federal Reserve now getting serious about tapering its mortgage and bond purchases, as well as preparing to raise the federal funds rate later this year, we should expect mortgage rates to rise in the coming weeks,” he said. “This increase has been underway for a couple of weeks already. If these increases are sustained, then we should eventually expect some slowdown in the rate of price growth, which on the whole is probably a good thing as our economy continues to recover from the impacts of the pandemic.”

 

 

Fla.’s Housing Market: Median Prices, Cash Sales Up in 3Q

Florida Realtors’ data: Higher median prices – up 18.4% for single-family homes to $355,000; up 18.6% to $254,900 for condos – than 3Q 2020. Condo-townhouse sales up 13%, though single-family home sales were down slightly (-1.1%), at least in part due to tight inventory.

Florida’s housing market continued to report rising median prices, more cash sales and tight inventory in 3Q 2021, according to the latest housing data from Florida Realtors®.

Closed sales of single-family homes statewide totaled 88,592 in 3Q 2021, down 1.1% from the 3Q 2020 level; closed sales of condo-townhouse properties totaled 37,876, up 13% compared to the same quarter a year ago, according to data from Florida Realtors Research department in partnership with local Realtor boards/associations. Closed sales typically occur 30 to 90 days after sales contracts are written.

Although the pace of home sales slowed from this spring, it was still quite strong in the third quarter of 2021, especially for condo-townhouse properties,” said Florida Realtors Chief Economist Dr. Brad O’Connor. “Price growth has moderated a little in recent months, as well, but the median price for single-family home sales in the third quarter was still up 18.4% year-over-year (to $355,000), while the median condo and townhouse price was up 18.6% (to $254,900) compared to a year ago.

The median is the midpoint; half the homes sold for more, half for less.

He added, “The inventory of homes on the market increased during the quarter, which was welcome news, but the latest data show that the pace of this increase has slowed considerably. That’s just another reminder that we have a long way to go in terms of supplying enough homes for sale to satisfy the continued high level of demand that we’re seeing in all different segments of the housing market.”

The share of closed sales that were all-cash purchases rose in 3Q 2021 compared to the previous year: Single-family existing home sales paid in all cash increased by 45.5% year-over-year, while all-cash sales of condo-townhouse units rose by 33.2%.

In 3Q 2021, the median time to a contract (the midpoint of the number of days it took for a property to receive a sales contract during that time) was 10 days for single-family homes and 15 days for condo-townhouse properties.

Inventory was at a 1.3-months’ supply in the third quarter for single-family homes and at a 1.7-months’ supply for condo-townhouse properties, according to Florida Realtors.

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 2.87% for 3Q 2021, down from the 2.95% average recorded during the same quarter a year earlier.

 

Fla.’s Housing Market Continues Positive Trends Through 2Q

Florida Realtors’ data: Sales, new listings and median prices are up (24.3% for single-family homes, 20.8% for condos) from a year ago. Chief Economist O’Connor: Mortgage rates, while low, are no longer falling, which will gradually reduce competition until price growth falls back to a more normal pace.

Florida’s housing market continued to show strong gains in 2Q 2021, with more closed sales, rising median prices and more new listings compared to 2Q 2020, according to the latest housing data from Florida Realtors®. Florida’s lockdown order due to the COVID-19 pandemic took effect April 1, 2020.

“Florida usually has a very strong spring homebuying season, but due to the pandemic, last year was clearly a major exception to the rule,” says Florida Realtors Chief Economist Dr. Brad O’Connor. “This year, though, we were back in business – and then some. Second quarter closed sales of existing single-family homes increased by 43.3% year-over-year (totaling 98,414), and were up nearly 16% compared to the 2Q 2019. Sales growth in the condo and townhouse resale market was even stronger, rising 117% (a total of 48,976 sales) compared to last year and up by almost 44% compared to two years ago.”

Closed sales typically occur 30 to 90 days after sales contracts are written.

The statewide median sales price for single-family existing homes in 2Q 2020 was $345,000, up 24.3% from the same time a year ago, according to data from Florida Realtors Research department in partnership with local Realtor boards/associations. The statewide median price for condo-townhouse properties during the quarter was $250,000, up 20.8% over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.

“Florida home prices always tend to rise the most during the first half of the year, but even taking that into consideration, price growth this year has still been well in excess of recent norms,” O’Connor says. “Falling mortgage rates last year allowed buyers to make bids on higher-priced homes. The competition this created among buyers is what’s driven prices up so much.”

However, so far this year, mortgage rates – while still low – are no longer falling, he notes.

“This will have the gradual effect of pricing more prospective buyers out of the market, which will reduce the level of competition until price growth falls back to a more normal pace,” he says. This transition will also be aided by recent increases in the number of homes being listed for resale. New listings of single-family homes in 2Q 2021 were up 24.2% vs. a year ago and over 8% compared to 2019. In the condo and townhouse category, new listings were up 27% compared to 2020 and over 15% compared to 2019.

In 2Q 2021, the median time to a contract (the midpoint of the number of days it took for a property to receive a sales contract during that time) was nine days for single-family homes and 20 days for condo-townhouse properties.

Inventory was at a 1.1-months’ supply in the first quarter for single-family homes and at a 1.7-months’ supply for condo-townhouse properties, according to Florida Realtors.

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.0% for 2Q 2021, down from the 3.23% average recorded during the same quarter a year earlier.

 

Fla.’s Housing Market: Sales, Median Prices Up in 1Q 2021

Florida Realtors’ data: Single-family home sales up 19.4% year-over-year, median sales price up 17.6% to $317.5K; condo sales up 37%, median price up 14.8% to $235.4K.

In the first quarter of 2021, Florida’s housing market reported more closed sales, higher median prices and more new pending sales compared to a year ago, according to the latest housing data released by Florida Realtors®. Closed sales of single-family homes statewide totaled 78,353 in 1Q 2021, up 19.4% from the 1Q 2020 level.

A year ago, in early March, the first coronavirus cases were confirmed in Florida,” said 2021 Florida Realtors President Cheryl Lambert, broker-owner with Only Way Realty Citrus in Inverness. “Looking back at that first quarter, considering everything that we have all endured with the pandemic, and where we are today in the first quarter of 2021, it’s almost impossible to believe. While we continue to deal with the COVID-19 pandemic and follow guidelines to stay safe and protect our communities, Florida’s housing market remains strong.

But, with demand for housing greater than the available supply, it continues to drive home prices higher – and tightens the existing home-market even more.”

In Florida’s condo-townhouse market, statewide closed sales totaled 37,505 during 1Q 2021, up 37% compared to 1Q 2020, according to data from Florida Realtors Research department in partnership with local Realtor boards/associations. Closed sales typically occur 30 to 90 days after sales contracts are written.

The statewide median sales price for single-family existing homes in 1Q 2021 was $317,500, up 17.6% from the same time a year ago. The statewide median price for condo-townhouse properties during the quarter was $235,422, up 14.8% over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.

Florida Realtors Chief Economist Dr. Brad O’Connor took a look at new listings data for 1Q 2021.

“New listings of homes for resale were marginally lower in January and February than they were a year ago before the pandemic, but these were offset by a decent increase in March,” he said. “For the quarter overall, there were only 2.5% fewer new listings of single-family homes than in the first quarter of 2020, and over in the condo and townhouse category, we saw a 5% increase.

“Most people I speak with are surprised to learn that, apart from the first couple months of the pandemic, the pace of new listings has been fairly close to what it was before the pandemic. That’s an understandable reaction, given how low our inventory levels are.”

O’Connor explained, “One way to think about it is to imagine an empty shelf at a supermarket that has been picked clean. It could be the store stopped getting shipments of the product that was on the shelf, but it could also be that demand for this product increased so significantly that – even though shipments have still been coming in – they’re getting snapped up as soon as they’re stocked. That’s what’s happening in the housing market right now. But to keep inventory from continuing to fall, we need to see a significant increase in the normal rate of new listings, and that’s not happening, either.”

Inventory was at a 1.2-months’ supply in the first quarter for single-family homes and at a 2.8-months’ supply for condo-townhouse properties, according to Florida Realtors.

In 1Q 2021, the median time to a contract (the midpoint of the number of days it took for a property to receive a sales contract during that time) was 19 days for single-family homes and 37 days for condo-townhouse properties.

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 2.88% for 1Q 2021, down from the 3.51% average recorded during the same quarter a year earlier.

 
 

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