Increased Inventory
The latest data from Florida Realtors indicates a marked increase in housing inventory across the state compared to the previous year. This surge encompasses both new and active home listings for single-family homes and condo-townhouse units. The rise in supply is a positive sign for potential buyers who have faced intense competition and limited choices in recent markets.
Stabilizing Prices
June 2024 saw median sales prices for single-family existing homes in Florida at $427,000, which represents a modest 1.7% increase from June 2023. In contrast, the median sales prices for condo-townhouse units have remained relatively flat at $324,900. These stabilizing prices signify a shift from the previously rapid price escalations, offering a more predictable market landscape for buyers and sellers alike.
Supply Levels
The improvement in inventory levels has also been quantified with single-family homes now enjoying a 4.6-months’ supply and condo-townhouse properties at a 7.4-months’ supply for both June and the second quarter of 2024. These statistics paint a more favorable picture for buyers, as the supply is moving towards a more balanced market.
Sales Activity
Interestingly, despite the uptick in housing inventory, the closed sales of existing homes have experienced a year-over-year decrease. June 2024 recorded an 11.1% drop in closed sales of single-family homes and a 20.5% decline in condo-townhouse sales compared to the same month in 2023. This dip may be attributable to economic factors such as higher mortgage rates and rising home prices, which have impacted buyer activity.
Market Outlook
Despite the current decrease in closed sales, there is an optimistic note in the report: the gap between pending inventory and closed sales is narrowing. This development suggests that the coming months could see a stabilization or even an increase in sales figures, provided that the homes currently under contract successfully close.
Economic and Demographic Factors
Florida continues to be a magnet for new residents, with Census data showing an influx of over 1,000 people moving to the state daily. This demographic trend supports the long-term health of the housing market, even as higher mortgage rates and home prices pose short-term challenges for sales. The inflow of new residents could sustain demand and contribute to market stability.
In summary, the Florida housing market is experiencing a period of adjustment with increased inventory levels and stabilizing prices. These trends are potentially advantageous for buyers, creating a more balanced market environment. While sales activity has slowed, the steady stream of new residents and the narrowing gap between pending and closed sales suggest that the market may see improved activity in the near future.
