Florida housing market sees higher median prices, but inflation and interest rates are impacting sales

The Florida housing market reported higher median prices, an increase in new listings of existing single-family homes and continued signs of easing supply constraints in July 2022 compared to a year ago, according to Realtors in Florida‘ latest housing data. However, inflation and rising mortgage interest rates continue to impact sales.

“The trend of improving inventory for sale continued in July, which will hopefully also help with housing affordability and dampen price increases over time for buyers,” said 2022 Florida Realtors President Christina Pappasthe vice-president of the Keyes family of companies In Miami. “However, homes continue to move quickly to contract: The statewide median time to contract for existing single-family homes in July was 12 days, up from nine days in the same month a year ago. The median time to contract for existing condominium and townhouse units was 13 days, down from 15 in July 2021.

“Market conditions can change quickly. A local real estate agent offers expertise and guidance to help consumers navigate the process of buying or selling a home,” she added.

Last month, closed sales of single-family homes statewide totaled 23,705, down 22.9% year-over-year, while sales of condo-existing townhouses totaled 9 341, down 30.7% from July 2021, according to data from the Florida Realtors Research Department in partnership with local realtor councils/associations. Closed sales can take place 30 to more than 90 days after the drafting of the sales contracts.

As July’s closed sales were down from the same period a year ago, Florida Realtors Chief Economist Dr. Brad O’Connor noted, “It’s almost not fair to comparing 2022 sales numbers to a year ago, as 2021 has been a good year for the housing market, with the 30-year mortgage rate hovering around 3% all year. But we also have to recognize that in July we saw fewer home sales than in July 2019, before the pandemic. This year’s high mortgage rates, combined with the continued rapid rise in house prices last year, have really dampened the number of transactions made this summer.

Without those two factors — higher mortgage rates and rising prices — “buyer demand would be booming in Florida right now,” he added.

“Demographically, Florida is in a great position, with the majority of millennials in the state entering their prime of life to buy their first home, not to mention the high level of interest for Florida among out-of-state buyers, whether investors, retirees, or self-employed,” O’Connor says. “Rents across the state have also increased significantly, so it’s not like renting has become more attractive compared to buying. But we simply cannot ignore the impact that these higher mortgage rates and house prices are having on the market, and we should expect the number of transactions reflects this over the next few months.

The statewide median sale price of existing single-family homes in July was $412,303, up 16.1% from a year earlier. Last month, the statewide median price for condominium apartments was $305,000, up 20.6% from a year earlier. The median is the midpoint; half of the houses sold more expensive, the other half cheaper.

On the supply side of the market, the downward trend in inventory (active listings) continued, increasing year over year in July. The supply of existing single family homes increased to a 2.2 month supply, while existing condominium and townhouse properties are at a 2.1 month supply.

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 5.41% in July 2022, significantly higher than the average of 2.87% in the same month a year earlier. .

Florida Daily
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