Florida’s housing market reported higher median prices, a rise in all-cash sales and constrained inventory levels in September compared to a year ago, according to Florida Realtors® latest housing data.
“The September data shows that while median prices are well above their year-ago levels for both single-family and condo-townhouse properties, the rate of price growth month-to-month has slowed down quite a bit over the past few months,” said 2021 Florida REALTORS® President Cheryl Lambert, broker/owner with Only Way Realty Citrus in Inverness, in a statement. “Of course, demand and a lack of inventory continue to put rising pressure on home prices. If mortgage rates start to increase more in the coming months, as many analysts predict, that could ease the intense demand we’ve been seeing.”
The statewide median sales price for single-family existing homes in September was $355,000, up 18.3% from the previous year, according to data from Florida REALTORS® Research Department in partnership with local REALTOR® boards/associations. Last month’s statewide median price for condo-townhouse units was $255,000, up 17.2% over September 2020. The median is the midpoint; half the homes sold for more, half for less.
Closed sales of single-family homes statewide last month totaled 28,302, down 1.3% year-over-year, while existing condo-townhouse sales totaled 11,845, up 4.9% over September 2020. Closed sales may occur from 30 to more than 90 days after sales contracts are written.
“However, a year ago in September, we were in the midst of a huge surge in sales resulting, in part, from the pandemic shifting transactions that would otherwise have occurred during spring, into the late summer and fall,” said Florida REALTORS® Chief Economist Dr. Brad O’Connor in a statement. “If we instead compare this September’s sales counts to those two years ago from September 2019, closed sales of single-family homes were up by over 20%, and closed sales of condos and townhouses were up by 31.5%. And so, relative to pre-pandemic levels, the Florida resale housing market is still performing exceptionally.”
In a continuing trend, the share of closed sales that were all-cash purchases rose last month compared to the previous year. In September, single-family existing home sales paid in all cash increased by 38.5% year-over-year, while all-cash sales of condo-townhouse units rose by 22.9%.
On the supply side of the market, new listings and inventory (active listings) remained restricted last month, O’Connor said.
“New listings of single-family homes only increased by 2.2% year-over-year in September, the lowest increase since February 2021,” he noted. “New listings of condos and townhomes, meanwhile, declined on a year-over-year basis for the first time since January, down by 7.3%. This slowdown in new listings relative to the pace of sales has resulted in our levels of inventory stalling out. While it’s good news that inventory isn’t falling again, that scenario isn’t entirely out of the cards in the coming months. In the longer run, the only way this shortage can be addressed is by building more new homes.”
Single-family existing homes continued at a very low 1.3-months’ supply in September, while condo-townhouse inventory was at a 1.7-months’ supply.
According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 2.90% in September 2021, a slight uptick from the 2.89% averaged during the same month a last year.
Source: Florida REALTORS®