Strong Demand, Low Inventory Continues to Bolster Florida’s Home Sales Market
The statewide median sales price for single-family existing homes was $255,000, an increase of 6.7% from the previous year, according to data from Florida Realtors
ORLANDO, FL—Despite higher interest rates, the Florida housing market posted strong numbers in May with higher sales, median prices and even new listings as compared to a year earlier.
The latest residential sales statistics released by trade group Florida Realtors on Wednesday indicated sales of single-family homes statewide totaled 28,071 in May, up 0.8% as compared to May 2017. The statewide median sales price for single-family existing homes was $255,000, an increase of 6.7% 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 May was $188,688, 6% higher than 12 months earlier.
Activity in May was the 77th consecutive month that the statewide median sales prices for both single-family homes and townhouse-condo properties rose year-over-year. The strong home sales climate comes as mortgage interest rates ratchet up. According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.59 % in May 2018, significantly up from the 4.01% average in May 2017.
“Strong demand from buyers, coupled with a lack of for-sale inventory, continues to have an impact on rising median prices in many local housing markets,” says 2018 Florida Realtors president Christine Hansen, broker-owner with Century 21 Hansen Realty in Fort Lauderdale. “Home sellers continued to get more of their original asking price at the closing table.”
She adds that sellers of existing single-family homes in May received 96.7% (median percentage) of their original listing price, while those selling townhouse-condo properties received 95.1% (median percentage) of their original listing price.
A stubborn problem for the housing market in Florida and across the nation has been a lack of inventory. The Florida sales data for May indicates a slight easing of the inventory shortage. New listings for single-family homes in May rose 4.8% year-over-year, while new townhouse-condo listings increased 6% during that period. If the trend continues, that could mean good news for buyers who have been waiting on the sidelines, Hansen notes.
For-sale inventory in May remained tight, at a 4-months’ supply for single-family homes and a 5.7-months’ supply for townhouse-condo properties.
Florida Realtors Chief Economist Dr. Brad O’Connor says, “Year-over-year sales growth was a bit slower in May than in April. Overall, there were about 200 more closed sales of single-family homes across the state this May than in May of last year —a rise of less than 1%. Condo and townhouse sales, on the other hand, were up more substantially by a little over 4%.”
Sales results in some of Florida’s major markets were mostly mixed. The Miami-Fort Lauderdale-West Palm Beach MSA posted a 4.8% decline in sales in May (4,469) and a 6.6% increase in the single-family median sale price of $352,000. The City of Jacksonville enjoyed a 2% increase in sales (2,388) in May and a 6.2% increase in the single-family median price ($250,000). The Tampa-St. Petersburg-Clearwater MSA posted a 0.4% decline in sales (4,940), but a 6.2% spike in its median single-family home sale price at $235,000 last month. The Orlando-Kissimmee-Sanford region suffered a 4.9% decline in sales (3,261), but a hefty 12.1% increase in the median single-family home price at $269,900, the largest price increase of all MSAs surveyed by the Florida Realtors association.