Florida’s housing market reported rising median prices, fewer days to contract and a continuing tight supply of inventory in June, according to the latest housing data released by Florida Realtors®.
“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,” said 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.
Sellers of existing single-family homes received 96.9 percent (median percentage) of their original listing price, while those selling townhouse-condo properties received 95.2 percent (median percentage).
“Buyer demand remains high as well. It took fewer days for a home or condo sale to go to contract in June compared to a year ago: 34 days for single-family homes, down 10.5 percent from June 2017; and 44 days for townhouse-condo properties, down 15.4 percent.”
Sales of single-family homes statewide totaled 27,836 last month, down 1.3 percent compared to June 2017. Meanwhile, the statewide median sales price for single-family existing homes was $260,000, up 6.1 percent 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 percent over the year-ago figure.
June was the 78th month in a row that the statewide median sales prices for both single-family homes and townhouse-condo properties rose year-over-year. The median is the midpoint; half the homes sold for more, half for less.
According to the National Association of Realtors® (NAR), the national median sales price for existing single-family homes in May 2018 was $267,500, up 5.2 percent from the previous year; the national median existing condo price was $244,100. In California, the statewide median sales price for single-family existing homes in May was $600,860; in Massachusetts, it was $405,000; in Maryland, it was $307,440; and in New York, it was $262,000.
Looking at Florida’s townhouse-condo market, statewide closed sales totaled 11,128 last month, up 1.2 percent compared to a year ago. Closed sales data reflected dwindling short sales and foreclosures in June: Short sales for townhouse-condo properties dropped 50.5 percent and foreclosures fell 30.1 percent year-to-year; while short sales for single-family homes declined 43.1 percent and foreclosures fell 42.9 percent year-to-year. Closed sales may occur from 30- to 90-plus days after sales contracts are written.
“The June performance of Florida’s markets for existing homes largely reflected the prevailing trends we’ve seen throughout 2018 thus far, although there are some differences,” said Florida Realtors Chief Economist Dr. Brad O’Connor. “Much of the lack of sales growth we’ve seen over the past couple of years is due to a long-run decline in the number of active listings—particularly within affordable price tiers. In some local markets, however, we are starting to see inventory levels stabilize somewhat.
“For instance, the statewide inventory of active single-family home listings at the end of June was only about 1 percent below where it was in June of the previous year, which is a much smaller year-over-year decline than we’ve seen in most months going back a couple of years. Some of this is attributable to a rise in new listings of single-family homes, which are up 3 percent so far this year, despite being relatively flat in June.”
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.
According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.57 percent in June 2018, significantly up from the 3.9 percent averaged during the same month a year earlier.