Single-family median price up 2% ($415K) YOY, condo median price up 6.2% ($324K). Chief Economist O’Connor: Mortgage interest rates continue to be “dominant factor.”
ORLANDO, Fla. – Florida’s housing market in August reflected similar trends as the past few months – statewide median sales prices rose year-over-year while sales slowed, according to Florida Realtors®’ latest housing data.
“Prospective buyers continue to be drawn to Florida’s lifestyle, climate and job opportunities,” says 2023 Florida Realtors® President G. Mike McGraw, a broker-associate with RE/MAX Central Realty in Orlando. “Persistently higher mortgage rates and a restricted for-sale inventory are hampering sales activity. However, as our housing prices continue to stabilize and interest rates hopefully moderate, we expect conditions to return to a more balanced market with more options for buyers and sellers.”
Last month, closed sales of existing single-family homes statewide totaled 22,917, down 7.9% from August 2022, while existing condo-townhouse sales totaled 9,279, down 7.2% from the same time a year ago, 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.
“Mortgage interest rates continue to be the most dominant factor in sales trends here in Florida as well as the rest of the U.S., so the continued year-over-year declines we’re seeing in closed sales are not surprising,” says Florida Realtors Chief Economist Dr. Brad O’Connor. “This summer, the average 30-year fixed mortgage rate was in the neighborhood of 7%, compared to between 5 and 5.5% last summer.”
Florida’s statewide median sales price for single-family existing homes in August was $415,000, up 2% from the same month a year ago, while the statewide median price for condo-townhouse units was $324,000, up 6.2% over the August 2022 figure. The median is the midpoint; half the homes sold for more, half for less.
“These elevated levels of home prices continue to offset the impact of lower levels of sales when it comes to dollar volume, which is calculated as the total combined sale value of all home transactions closing each month,” O’Connor says. “August’s dollar volume of closed existing single-family home sales in Florida was about $13.2 billion. That’s down 4.4% compared to last August; however, dollar volume has been much closer to 2021 and 2022 levels so far this year, compared to before the pandemic in 2019.
“Year to date through August, single-family dollar volume in Florida has been about $104 billion, compared to about $69 billion during the same eight-month period in 2019. In the townhouse and condo category, dollar volume was actually up year-over-year in August, rising by 2.8%, to $4.1 billion.”
On the supply side of the market, single-family existing homes ticked up slightly to reach a 3-months’ supply in August while condo-townhouse properties rose to a 3.8-months’ supply.
© 2023 Florida Realtors®