Buyers looking at the Sunshine State have some good news: there’s now more Florida property for sale, and median prices remain stable. However, inventory levels continue low and, as a result, there still aren’t enough homes to go around.
Higher inventory levels
The latest figures for the Florida housing market show more active listings than this time last year, reflecting slower sales. According to Florida Realtors, inventory levels for single-family homes stood at 2.7 months’ supply in May, while those for condos and townhouses stood at 3.6 months.
Both are considerably higher than in May 2023, when they were 1.4 and 1.5 months, respectively. However, analysts point out that they sit well below a balanced market with 6 months’ supply.
“While communities across Florida are seeing increases in active listings, the state’s supply of for-sale single-family homes and for-sale condo-townhouse properties remain far below what is normally considered to be a balanced market,” said 2023 Florida Realtors President G. Mike McGraw.
Experts ascertain that higher mortgage interest rates constitute one of the main reasons for low active listings. “They’re not only dampening sales activity, but they continue to dissuade some homeowners from selling as well,” said Brad O’Connor, Chief Economist at Florida Realtors.
Steady prices for Florida property for sale
Along with the good news of a marginal uptick in available homes come statistics for property prices in Florida. After a hectic 2022, when values soared on a monthly basis, this year is showing a different picture.
In May, the median price for single-family homes stood at US$419,900, almost identical to 12 months ago when the average was US$420,000. Condos and townhouses in Florida reveal a similar trend, with the median at US$325,000, up just 0.9% in the year.
Analysts hailed the price statistics as “welcome news for first-time buyers”. However, high mortgage rates “remain challenging” for all buyers.
“The 30-year fixed mortgage rates have persistently remained in the 6% to 7% range for most of this year,” said O’Connor. “This has led to a stabilization in price growth.”
Slower sales
Within this context of low inventory levels and fluctuating interest rates, it’s no surprise to discover that sales are lower than last year. In May, 26,396 single-family homes changed hands in Florida, an 8.5% drop compared to 2023.
The condo and townhouse sales rate fell even further. The 11,392 transactions in May represent a decrease of 14.1% compared to 12 months ago.
With the Fed showing no signs of reducing interest rates in the near future, May figures look set to become a trend for the next few months. “We should expect to see year-over-year figures like this for the next few months,” said O’Connor.
However, the Sunshine State remains one of the nation’s favourite relocation spots. As a result, the state welcomes around 900 new residents every month. Higher mortgage rates and lack of Florida property for sale mean many are forced to rent rather than buy. This situation consequently expands buy-to-let and build-to-rent opportunities in the state.
(Source: Florida Realtors)
