Florida Realtors: YOY single-family home median price flat at $420K, supply at 2.8 months. YOY condo median price also remains the same at $325K, supply at 3.6 months.
ORLANDO, Fla. – Florida’s housing market in June and second quarter (2Q) 2023 showed signs of continued stabilization of statewide median prices and improving inventory levels (active listings) compared to a year ago, according to Florida Realtors®’ latest housing data.
“Florida’s economy and lifestyle continue to attract people who want to live and work in the Sunshine State – about 1,218 people move here per day, according to Census data,” says 2023 Florida Realtors® President G. Mike McGraw, a broker-associate with RE/MAX Central Realty in Orlando. “The need for homeownership opportunities remains high, but increased borrowing costs, statewide inventory that is still below pre-pandemic levels and other factors continue to affect market activity.”
Last month, closed sales of existing single-family homes statewide totaled 26,071, down 7.9% year-over-year, while existing condo-townhouse sales totaled 10,494, down 11% over June 2022, according to data from Florida Realtors Research Department in partnership with local Realtor boards/associations. For 2Q 2023, statewide existing single-family home sales totaled 75,801, down 11.2% from 2Q 2022, while statewide existing condo-townhouse sales totaled 31,926, down 17.7% year-over-year. Closed sales may occur from 30- to 90-plus days after sales contracts are written.
Florida Realtors Chief Economist Dr. Brad O’Connor pointed out in June 2022, the typical rate on a 30-year fixed-rate mortgage rose to about 5%, after starting the year at around 3%.
“This June, by contrast, the typical 30-year fixed rate was between 6.5% to 7%,” he says. “In light of that headwind, a 7.9% year-over-year decline in closed single-family home sales is understandable. As the monthly gap between closed sales this year compared to a year ago continues to shrink, we may see sales rise year-over-year in the coming months.
“And if rates remain stable the remainder of this year, or especially if they start to pull back a bit, we may very likely see sales continue to trend along the seasonal path typical of pre-pandemic years, such as in 2019.”
The statewide median sales price for single-family existing homes in June was $420,000, the same as the previous year, while the statewide median price for condo-townhouse units was $325,000, relatively the same as the June 2022 figure.
For 2Q 2023, Florida’s single-family median sales price was $418,000, slightly higher (0.2%) than the same quarter a year ago; the condo-townhouse median for 2Q was $325,000, up 1.9% year-over-year. The median is the midpoint; half the homes sold for more, half for less.
Looking at the end-of-month inventory of active listings of single-family homes, Dr. O’Connor says, “In 2022, as rates started to rise and the market shift became apparent, initially, there was a rapid rise in inventory levels as new listings started coming on to the market at a high rate. But once that short-lived burst in new listings reversed in the latter half of last year, inventory growth stabilized, and that trend has continued in 2023. As of the end of June, single-family inventory was 13.8% higher than a year ago, but that gap will be closing rapidly in the next month or two.
“Overall, we are at an inventory level that is about halfway between our pre-pandemic inventory level at this time in 2019 and our low point during the pandemic in 2021,” he says. “The improvement we’ve seen in inventory levels is a sign that upward pricing pressures are moderating.”
On the supply side of the market, single-family existing homes were at a 2.8-months’ supply in June and 2Q 2023, while condo-townhouse properties were at a 3.6-months’ supply for both timeframes.
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