Florida real estate sees decrease in median number of days a property sits on the market

by | Jul 6, 2023

  • Florida’s real estate market is experiencing a decrease in the number of days properties are available for sale, with the median number of days dropping from 69 in January to 56 in June.
  • The state has seen a slight increase in active single-family and condo or townhome listings, and there were 15,062 building permits issued for residential structures in May.
  • Foreign investors, particularly from Latin America, Asia, and Europe, are contributing to the strength of Florida’s housing market, with over $12 billion brought to the economy last year through the purchase of 22,500 existing homes.

Florida’s real estate market is seeing a decrease in the number of days a residential property is available for sale on the open market compared to the beginning of 2023.

Based on the latest data from the Federal Reserve Economic Data, property listings in Florida are spending less time on the open market. In January, the median number of days on the market was 69, which dropped to 56 days in June, representing a nearly two-week decline. This change marks the largest decrease in days on the market since the period between January 2022 and May 2022, when the median listed days decreased from 51 to 31 days, coinciding with Florida’s real estate market recovery from the effects of the COVID-19 pandemic.

Moreover, the state saw a slight uptick in active single-family and condo or townhome listings from the month prior, from 80,905 in May to 81,676 in June. Florida also recorded 15,062 building permits for all residential structure types in May.

“Active listings of single-family existing homes more than doubled from a 1-month supply at the end of 2021 to a 2.7-months’ supply at the end of 2022. If we get a little relief in mortgage rates, then all the other factors are still there that make Florida appealing and a strong draw for buyer demand,” said Florida Realtors Chief Economist Dr. Brad O’Connor. 

Continuous growth in population and economic activity has fostered a thriving housing market and home prices that have remained resilient, particularly in cities like Miami, Fort Lauderdale, Pensacola, Naples, Tallahassee, and Sebastian, where home prices rose between February and March.

Florida’s housing market strength is also supported by wealthy buyers who view Florida real estate as an investment opportunity. With a spike in all-cash offers from foreign investors from Latin America, Asia, and Europe, prices have remained high, particularly along the coastal areas.

Foreign real estate investors brought upwards of $12 billion to the Florida economy last year, totaling 22,500 existing homes purchased at a medium cost of $347,300, a recent real estate study showed.

The Miami metropolitan area, including West Palm Beach and Ft. Lauderdale, accounted for over 50 percent of properties purchased, followed by the Orlando region (10 percent), Tampa (8 percent), Cape Coral-Ft. Myers (5 percent), and Sarasota (4 percent).

Forty-three percent of Florida’s foreign buyers purchased in a central city or urban area, an increase from 34 percent in the prior 12-month period. The increase can be explained by the higher share of buyers from Latin America, who tend to purchase properties in the Miami metro area. Nationally, 28 percent of all U.S. foreign buyers purchased property in a central city/urban area.

Latin American and Caribbean individuals comprised the largest point of origin for Florida’s international buyers at 46 percent, trailed by Canadians (18 percent), Europeans (15 percent), Asia and Oceania (7 percent), and Africans (1 percent). The top countries were Canada (18 percent), Colombia (9 percent), Argentina (7 percent), Brazil (6 percent), and Venezuela (5 percent).

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