Latest Housing Data Shows Continuous Upward Trend for the Florida Housing Market
The latest housing data from Florida Realtors shows that the month of June has been a robust one with an increase in median prices.
More homes have also been sold and there are even more listings when compared to the trend from 12 months back.
Closed-sale figures have seen a year-over-year rise of 23.6% for single-family homes throughout the state in June. An estimated 34,165 single-family homes were sold.
Compared to June 2020, single-family existing homes have seen a 24.5% rise in median sale prices ($351,000). This data comes from the research department of the Florida Realtors in collaboration with local Realtor associations and boards.
For condo-townhouses, median sale prices throughout the state rose by 22.4% ($256,945) when compared to the same month last year.
Keep in mind that the median sale prices represent the midpoint between the homes selling at higher or lower prices.
Florida Realtors President, Cheryl Lambert, says June was a month of continued strong gains, especially fueled by the pandemic’s impact this time last year. Now we are seeing a more than 20% year-over-year rise in single-family homes popping up as new listings (21.6% actually).
There’s also been a 10% increase in condominiums and townhouses on the market as new listings.
But despite the stats showing such a massive increase in the number of new listings, there hasn’t been enough to satisfy buyer demand which is even greater. But current trends hint that this buying pressure may cool off soon.
Brad O’Connor, Chief Economist of Florida Realtors, believes that there may be some reduction in the ratio of buyers to sellers, according to recent data. So, in the coming months, the rapid growth of home price rates might lose some steam and even that is somewhat tied to whether interest rates start to climb again or not. But for now, premiums are still on the rise.
O’Connor also has identified another trend worth considering. We are beginning to see more all-cash purchases in the percentage of closed sales when compared to previous periods.
And this rise in cash sales is being attributed to two factors – more higher-end sales and more single-family homes below the $400,000 price tier being paid for in cash.
In June, cash sales made up 31% of closed deals for single-family homes which represents a significant rise from previous figures of 22.4% in 2019 and 19% in 2020. As investor activity continues to increase, these numbers will be under close watch.
On the flipside, looking at the supply side of the current situation, June has been a really tight month in terms of active listings.
There’s been a much lower supply of condo-townhouse and single-family existing home inventory. And interest rates for a fixed-rate mortgage of 30 years fell to a 2.98% average this June compared to 2020 figures of 3.16% for the same month.