FLORIDA MAY HOME SALES: LISTINGS AND PRICES UP
Florida Realtors®: Florida’s single-family median price up 21.8% to $420K. Condo median price up 28.8% to $322K. Rising interest rates slow sales but new listings up.
Rising mortgage interest rates, high inflation and still-tight inventory levels were factors influencing Florida’s housing market in May, with fewer closed sales compared to a year ago, according to Florida Realtors®’ latest housing data.
“Households everywhere are feeling the pinch of high inflation,” says 2022 Florida Realtors® President Christina Pappas, vice president of the Keyes Family of Companies in Miami. “Homebuyers are also facing the challenges of rising interest rates and tight inventory of for-sale homes, causing some to hit the pause button on their plans. Still, the median time to contract for single-family existing homes in May was nine days – the same as it was in May 2021. The median time to contract for existing condo-townhouse units last month was 10 days compared to 19 days a year ago.
“Real estate market conditions are always changing, but buyers and sellers can turn to a local Realtor® for expertise, knowledge and support.”
Last month, closed sales of single-family homes statewide totaled 28,861, down 6.9% year-over-year, while existing condo-townhouse sales totaled 13,265, down 14.4% from May 2021, according to data from Florida Realtors® Research Department in partnership with local Realtor® boards/associations. Closed sales may occur from 30- to 90-plus days after sales contracts are written.
Rising mortgage interest rates continue to depress sales of existing homes in Florida, according to Florida Realtors® Chief Economist Dr. Brad O’Connor, who added that the current level of sales is more comparable to the pre-pandemic years of 2018 and 2019 than sales in 2021, when mortgage rates were still near their all-time lows.
“This slowdown in the rate of sales was accompanied by an increase in the rate of homes listed for sale in May,” he said. “New listings of single-family homes were up on a year-over-year basis by 10.2% – the largest such increase since August of last year. New listings of townhouses and condos were up more modestly, by 3.4%.”
Dr. O’Connor explains, “With sales levels falling closer to historical norms and new listings on the rise in May, inventory levels are starting to rise, as well. The number of single-family homes actively listed for sale in Florida at the end of May was up over 23% compared to the end of April, and up 31.5% compared to a year ago. However, townhouse and condo inventory was up by almost 16% month-over-month, but still down on a year-over-year basis by 20.5%.
“Remember, inventory in each category – single-family homes and also for condo-townhouse properties – has remained at a very low level for some time, which means we’re still deep in seller’s market territory. But we’re starting to see some progress back toward a balanced market.”
The statewide median sales price for single-family existing homes in May was $420,000, up 21.8% from the previous year. Last month’s statewide median price for condo-townhouse units was $322,000, up 28.8% over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.
On the supply side of the market, inventory (active listings) of single-family existing homes showed some year-over-year improvement in May; it was at a 1.4-months’ supply compared to a 1.1-months’ supply a year ago. Condo-townhouse inventory was at a 1.5-months’ supply in May.
According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 5.23% in May, significantly higher than the 2.96% averaged during the same month a year earlier.
Source: Florida Realtors®