Florida’s real estate market reported rising median prices and fewer all-cash closed sales in July, according to the latest housing data released by Florida Realtors®. Closed sales of single-family homes statewide totaled 24,083 last month, down 8% from July 2015, reflecting the state’s current shortfall in inventory.
Florida’s housing market: Increased median selling prices in July
“Florida’s supply of for-sale homes remains tight, which is putting pressure on median prices and having a dampening influence on closed sales,” says 2016 Florida Realtors President Matey H. Veissi, broker and co-owner of Veissi & Associates in Miami. “But the state’s strong jobs outlook and growing economy are attracting more and more new residents, which provides a solid foundation for the real estate market. Florida businesses created 26,500 jobs in July and our population is growing by greater than 1,000 new residents each day, reported by recent economic reports.”
Home sellers continued to get more of their original asking price at the closing table in July: Sellers of existing single-family homes received 96.4 % (median percentage) of the original listing price, while those selling townhouse-condo properties received 94.6 percent (median percentage).
The statewide median sales price for single-family existing homes in July was $223,238, up 11.6 % from the previous year, based on data from Florida Realtors research department in partnership with local Realtor boards/associations. Thestatewide median price for townhouse-condo properties in July was $160,000, up 6.8% over the year-ago figure.
In July, statewide median sales prices for both single-family homes and townhouse-condo properties rose year-over-year for the 56th month in a row, Veissi notes. The median will be the midpoint; half the homes sold for more, half at a lower price.
Accordingto the National Association of Realtors (NAR), thenational median sales price for existing single-family homes in June 2016 was $249,800, up 5 percent from the previous year; the national median existing condo price was $231,600.In California, the statewide median sales price for single-family existing homes in June was $519,440; in Massachusetts, it was $380,000; in Maryland, it was $291,892; and in New York, it was $248,500.
In Florida’s townhouse-condo market, statewide closed sales totaled 8,934 last month, down 11.5 percent when compared with July 2015. Closed sales data reflected fewer short sales and cash-only sales in July: Short sales for townhouse-condo properties declined 41.1 % while short sales for single-family homes dropped 34%. Closed sales may occur from 30- to 90-plus days after sales contracts are written.
“Compared to July of 2015, closed single-family home sales were down in 18 out of Florida’s 22 metro areas this July,” says Florida Realtors Chief Economist Brad O’Connor. “This means a statewide sales decline of 8% year-over-year, that is the largest drop we have seen for any month in 2016. However a closer look at the data shows exactly the same underlying trend we have been seeing all year, which happens to be that these sales declines are occurring almost exclusively in sub-$200,000 price tiers.
“Florida continues to suffer from a drought in the supply of affordable housing for sale, resulting from the gradual exhaustion of the state’s inventory of distressed properties and the lack of new construction in these price ranges. The same story is largely playing out in the markets for condos and townhouses.”
Inventory was at a 4.3-months’ supply in July for single-family homes and at a 5.9-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 3.44 % in July 2016, significantly less than the 4.05% average recorded in the same month a year earlier.