Regional Spotlight—Florida’s housing market reported increased median prices, more new listings and fewer all-cash closed sales in September, according to the latest housing data from Florida Realtors®.
Tight inventory continues to impact the state’s housing market, notes Florida Realtors® Chief Economist Brad O’Connor. Closed sales of single-family homes statewide totaled 22,704 last month, slightly down (0.5 percent) from September 2015. Meanwhile, in the townhouse-condo market, statewide closed sales totaled 8,818 last month, down 3.9 percent compared to a year ago.
“Florida’s economy continues to grow, resulting in improving jobs and incomes for workers across the state,” says 2016 Florida Realtors® President Matey H. Veissi, broker and co-owner of Veissi & Associates in Miami. “In turn, that is generating interest from many would-be buyers who are ready to enter the housing market. However, the latest data shows that a continued lack of inventory—especially in the mid-$200,000 and under range—is affecting those potential homebuyers, leaving them with limited choices and higher prices as a result.”
Similar to previous months, inventory was at a 4.2-months’ supply in September for single-family homes and at a 5.8-months’ supply for townhouse-condo properties, according to Florida Realtors®.
Once again, home sellers continued to get more of their original asking price at the closing table in September: Sellers of existing single-family homes received 96.2 percent (median percentage) of their original listing price, while those selling townhouse-condo properties received 94.8 percent (median percentage).
The statewide median sales price for single-family existing homes last month was $222,500, up 11.3 percent from the previous year, according to data from Florida Realtors® research department in partnership with local Realtor® boards/associations. The statewide median price for townhouse-condo properties in September was $160,000, up 6.7 percent over the year-ago figure.
In September, statewide median sales prices for both single-family homes and townhouse-condo properties rose year-over-year for the 58th month in a row, Veissi notes.
Closed sales data reflected fewer short sales and cash-only sales in September. Short sales for single-family homes declined 33.8 percent, while short sales for townhouse-condo properties dropped 27.2 percent.
“Even though the number of Florida single-family home sales in September was essentially the same as last year, the composition of this year’s group was quite different —and in a good way,” says O’Connor. “Distressed sales made up only 10 percent of single-family home sales this September, compared to over 19 percent in September 2015, and only 28 percent of sales were all-cash deals this time around, compared to 34 percent last year.
“If our housing markets are going to return to some semblance of what many might term ‘normalcy,’ it’s vital that both of these trends continue,” O’Connor adds.
For more information, visit www.floridarealtors.org.