The latest
housing data reveals that although property prices continue to rise, the
Florida real estate market is showing signs of a shift in trends. In
particular, supply levels are rising and time to contract slowing, both of which
are good news to buyers in the state.
Property prices continue
upwards
Despite
higher mortgage interest rates and a slight uptick in inventory, Florida
property prices remain on their steady upward trajectory. Single-family homes
cost a median of US$407,000 in August, a 15% increase in the year.
Figures
from Florida Realtors also showed that condo and townhouse properties experienced
an even higher price hike. They reached a median of US$305,000, which translates
to 20.8% more than in August 2021.
Sales less buoyant but
inventory growing
The Florida
real estate market has been shackled by lack of supply for the last three years
and as a result, the Sunshine State has seen fewer sales. In August this year, single-family
home transactions fell by 15.8% in the year and apartment sales dropped by
20.3%.
Inventory
levels have, however, seen a slight shift in trend. The supply of single-family
homes stood at 2.4 months, up from 1.3 months a year ago. Condo
properties in Florida had a 2.2 months’ supply compared to 1.7 months in
August last year.
Less pressure for homebuyers
“The
much-needed gains in active inventory will hopefully ease the pressure of
rising home prices for buyers,” said Christina Pappas, President of Florida
Realtors.
Nonetheless,
active listings remain well below the levels seen in 2019, before the pandemic.
As a result, Chief Economist Brad O’Connor cautioned that inventory growth “has
slowed considerably”. He believes that the 4% rise in August compared to 17% in
July could be down to the aversion among some homeowners of “listing in this
uncertain economic environment”.
Time to contract still
short
However,
despite shifts in inventory and rising prices, one constant remains on the
Florida real estate market. The time to contract continues to be brisk with
buyers quick off the mark.
In August,
it took an average of just 17 days for condo properties to go to contract, just
2 days shorter than 12 months earlier. Single-family homes went under contract
in 16 days, slightly more than the 9 days registered last year, but the
purchase process was still extremely quick.
New homes prices and
supply also rise
For their
part, the US
Department of Housing released data for the new-home
market in August. It showed that inventory for new single-family properties
stood at 8.1 months’ supply and that median prices had risen by 8.2% to reach
US$436,800.
(Source: Florida Realtors, US Department of
Housing)
