Median prices for single-family homes rose 2% to $415K, while condo median prices increased 6.2% to $324K YoY. According to Chief Economist O’Connor, mortgage interest rates continue to be the dominant factor.
Florida’s housing market reflected familiar trends in August: statewide median sales prices rose YoY while sales slowed, according to the latest data from Florida Realtors®.
According to G. Mike McGraw, a broker-associate with RE/MAX Central Realty in Orlando and the 2023 Florida Realtors® President, Florida continues to attract potential buyers due to its lifestyle, climate, and job opportunities. However, sales activity is being negatively affected by persistently higher mortgage rates and limited inventory available for sale. Nevertheless, as the housing prices stabilize and interest rates potentially decrease, the market is expected to become more balanced, allowing for more options for both buyers and sellers.
According to data from the Florida Realtors Research Department in partnership with local Realtor boards/associations, closed sales of existing single-family homes in the state totaled 22,917 last month, which is down by 7.9% from August 2022. Additionally, existing condo-townhouse sales also decreased by 7.2% from the same time last year, with a total of 9,279 sales. It’s important to note that closed sales may occur within 30-90 days after sales contracts are written.
The most dominant factor affecting sales trends in Florida and across the United States is the mortgage interest rates. This is according to Dr. Brad O’Connor, the Chief Economist at Florida Realtors. It’s not surprising to see a year-over-year decline in closed sales because of the continued decrease in mortgage interest rates. Last summer, the average 30-year fixed mortgage rate was between 5 and 5.5%, while this summer, it was around 7%.
In August, the median sales price for single-family existing homes in Florida was $415,000, which is a 2% increase from the same month last year. Meanwhile, the median price for condo-townhouse units was $324,000, up by 6.2% over the August 2021 figure. It’s important to note that the median price represents the midpoint, meaning that half of the homes sold for more than the median price, while the other half sold for less.
According to O’Connor, the high prices of homes are balancing out the effects of lower sales on the total dollar volume of home transactions. This volume is calculated as the sum of all transaction values each month. In August, the dollar volume of closed single-family home sales in Florida was roughly $13.2 billion, which is a 4.4% decrease from the previous August. However, the dollar volume has been much closer to 2021 and 2022 levels this year, compared to the period before the pandemic in 2019.
From January to August this year, the total value of single-family homes sold in Florida was about $104 billion, which is $35 billion more than the same period in 2019 when it was around $69 billion. In the townhouse and condo category, dollar volume increased by 2.8% in August, amounting to $4.1 billion, which is higher than the previous year’s August figures.
During August, the supply of single-family existing homes slightly increased to 3 months while the supply of condo-townhouse properties rose to 3.8 months.
