Florida’s housing market reflected the impact of coronavirus pandemic and economic turmoil in the second quarter of 2020.
Particularly during April and May, the markets experienced higher median prices and more pending inventory, but fewer closed sales and fewer new listings compared to 2Q 2019, according to the latest housing data from Florida REALTORS®.
Closed sales of single-family homes statewide totaled 68,675 in 2Q 2020, down 19.2 percent from the 2Q 2019 level; closed sales of condo-townhouse properties totaled 22,571, down 33.9 percent compared to 2Q 2019. Closed sales typically occur 30 to 90 days after sales contracts are written.
Quarterly data figures normally offer a good look into prevailing economic and market trends, according to Florida REALTORS® Chief Economist Dr. Brad O’Connor.
“This year, however, has been a notable exception, with the state of the housing market shifting rapidly from week to week,” he said.
O’Connor added, “For example, we were only down a little over 4 percent year-over-year in new pending sales of single-family homes during the second quarter, but this masks the fact that we were down 35 percent (new pending single-family home sales) in April, only to see a phenomenal bounce-back recovery of 2.3 percent in May and over 23 percent in June.
“All indications are that Florida will continue to see home sales surge through the end of the summer, with our biggest near-term issue being a severe lack of single-family inventory.”
The statewide median sales price for single-family existing homes in 2Q 2020 was $277,500, up 4.7 percent from the same time a year ago, according to data from Florida REALTORS® Research department in partnership with local REALTOR® boards/associations. The statewide median price for condo-townhouse properties during the quarter was $207,000, up 6.2 percent over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.
“With mid-year inventory levels down over 27 percent compared to last year, the scarcity of homes on the market will continue to propel prices upward,” O’Connor said. “Price growth has remained so strong throughout the pandemic that at the mid-point of the year, Florida had already seen close to $50 billion worth of closed single-family home sales, less than 2 percent off from last year’s pace.”
In 2Q 2020, the median time to a contract (the midpoint of the number of days it took for a property to receive a sales contract during that time) was 37 days for single-family homes and 50 days for condo-townhouse properties.
Inventory was at a 2.8-months’ supply in the first quarter for single-family homes and at a 5.7-months’ supply for condo-townhouse properties, according to Florida REALTORS®.
According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.23 percent for 2Q 2020, down from the 4.0 percent average recorded during the same quarter a year earlier.