The state’s housing market reported higher median prices, a rise in all-cash sales and constrained inventory levels in September compared to a year ago, according to new housing data from Florida Realtors.
“The September data shows that while median prices are well above their year-ago levels for both single-family and condo-townhouse properties, the rate of price growth month-to-month has slowed down quite a bit over the past few months,” said 2021 Florida Realtors President Cheryl Lambert, broker-owner with Only Way Realty Citrus in Inverness. “Of course, demand and a lack of inventory continue to put rising pressure on home prices. If mortgage rates start to increase more in the coming months, as many analysts predict, that could ease the intense demand we’ve been seeing.”
According to the monthly report issued by the Florida Realtors Research Department, the statewide median sales price for single-family existing homes in September was $355,000, up 18.3 percent from the previous year. Thursday’s report also found that last month’s statewide median price for condo-townhouse units was $255,000, up 17.2 percent over September 2020.
In total, closed sales of single-family homes statewide last month totaled 28,302, down 1.3 percent year-over-year, while existing condo-townhouse sales totaled 11,845, up 4.9 percent over September 2020.
“However, a year ago in September, we were in the midst of a huge surge in sales resulting, in part, from the pandemic shifting transactions that would otherwise have occurred during spring, into the late summer and fall. If we instead compare this September’s sales counts to those two years ago from September 2019, closed sales of single-family homes were up by over 20 percent, and closed sales of condos and townhouses were up by 31.5 percent. And so, relative to pre-pandemic levels, the Florida resale housing market is still performing exceptionally. said Florida Realtors Chief Economist Dr. Brad O’Connor.
Additionally, the share of closed sales that were all-cash purchases rose last month compared to the previous year. In September, single-family existing home sales paid in all cash increased by 38.5 percent year-over-year, while all-cash sales of condo-townhouse units rose by 22.9 percent. Meanwhile, the supply side of the market saw new listings and inventory remain restricted last month.
“New listings of single-family homes only increased by 2.2 percent year-over-year in September, the lowest increase since February 2021,” O’Connor noted. “New listings of condos and townhomes, meanwhile, declined on a year-over-year basis for the first time since January, down by 7.3 percent. This slowdown in new listings relative to the pace of sales has resulted in our levels of inventory stalling out. While it’s good news that inventory isn’t falling again, that scenario isn’t entirely out of the cards in the coming months. In the longer run, the only way this shortage can be addressed is by building more new homes.”
Single-family existing homes continued at a very low 1.3-months’ supply in September, while condo-townhouse inventory was at a 1.7-months’ supply.
According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 2.90 percent in September 2021, a slight uptick from the 2.89 percent averaged during the same month a year earlier.
To see the full statewide housing activity reports, click here.