Tight Supply, High Demand Ramps Up Florida Home Prices
For-sale inventory in June remained tight, at a 3.9-months’ supply for single-family homes and 5.5-months’ supply for townhouse-condo properties, according to Florida Realtors.
ORLANDO—The Florida housing market continues to be impacted by low inventory, particularly in the mid- or affordable-priced levels. The short supply is causing home prices to rise in major markets throughout the state.
Sales of single-family homes statewide in the month of June totaled 27,836, down 1.3% compared to June 2017. The statewide median sales price for single-family existing homes was $260,000 last month, up 6.1% 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 June was $190,000, up 7.5% over the year-ago figure.
June was the 78th month in a row the statewide median sales prices for both single-family homes and townhouse-condo properties rose year-over-year. For-sale inventory in June remained tight, at a 3.9-months’ supply for single-family homes and 5.5-months’ supply for townhouse-condo properties, according to Florida Realtors.
In May, the statewide median existing single-family home price rose 6.7% from May 2017 to $255,000.
In the townhouse-condo market, statewide closed sales totaled 11,128 in June, up 1.2% compared to a year earlier. Closed sales data reflected dwindling short sales and foreclosures in June, according to the monthly sales report released on Monday.
Short sales for townhouse-condo properties dropped 50.5% and foreclosures fell 30.1% year-to-year; while short sales for single-family homes declined 43.1% and foreclosures fell 42.9% year-to-year.
“Florida is still experiencing a shortfall in for-sale homes in many local housing markets and that continues to put upward pressure on median prices,” says 2018 Florida Realtors President Christine Hansen, broker-owner with Century 21 Hansen Realty in Fort Lauderdale. “And in June, home sellers received more of their original asking price at the closing table”
She notes that sellers of existing single-family homes received 96.9% of their original listing price, while those selling townhouse-condo properties received 95.2% of their original listing price.
Buyer demand remained high as well with prospective home or condo deals taking fewer days to go to contract in June compared to a year earlier—34 days for single-family homes, down 10.5% from June 2017; and 44 days for townhouse-condo properties, down 15.4%.
In a separate report released on Monday by the Miami Association of Realtors, tight inventory in the lower price points, combined with stronger sales in the luxury home sector, caused home sale prices in Miami-Dade County to rise 6% in June as compared to June 2017.
“We continue to see a divided real estate market in Miami-Dade with strong overall demand for local properties,” Miami Association of Realtors chairman of the Board George C. Jalil says. “There is limited inventory available under $600,000. And while luxury sales have significantly increased over the last few months, high supply in the luxury sector offers great opportunities for buyers.”
Miami-Dade County single-family home prices increased 6.0% in June 2018, increasing from $335,000 to $355,000 from a year earlier. Miami single-family home prices have now risen for 78 consecutive months, a streak of more than 6.5 years. Existing condo prices in the region rose 2.1%, from $235,000 to $240,000 in June. Condo prices have increased in 82 of the last 85 months, the Realtor association reports.
Total Miami luxury sales ($1 million-and-above) increased 21.5% from 181 to 220 in June 2018. Condo luxury sales led the surge by posting a 28.0% jump to 96 transactions. Condo and single-family $1 million-and-above transactions have each now increased year-over-year in six of the last seven months.