The Florida housing market in August 2023 remained strong, but showed some signs of cooling. Home prices continued to rise, but at a slower pace than in previous months. Meanwhile, the number of homes sold was also down, but only slightly. According to the latest data from Florida Realtors®, statewide median sales prices rose year-over-year while sales slowed. We take a deeper dive into the latest data below.
Florida housing market trends
The median sales price of a single-family home in Florida in August 2023 was $415,000, up 2% from the same month last year. Meanwhile, the statewide median price for condo-townhouse units was $324,000, up 6.2% over the August 2022 figure. This is the 23rd consecutive month of year-over-year price increases. However, the pace of price appreciation has slowed in recent months. The median sales price was up 0.4% from July 2023.
As for the volume of home sales, we continue to see a slowdown in this as well. As of August 2023, closed sales of existing single-family homes statewide totaled 22,917. This figure reflects a year-over-year drop of 7.9%. As for existing condo-townhouse sales, the total number of sales was 9,279 statewide. This figure translated into a drop of 7.2% from the year prior.
Looking ahead for the Florida housing market
Looking ahead, mortgage rates will continue to be the dominant force in the housing market. Assuming these rates persistently tick up as the Federal Reserve continues to battle inflation, we will see more prospective home buyers priced out of the market. In addition, it is also more likely that we will continue to see challenges with inventory as more homeowners opt to remain in place. For perspective, this summer saw average the average 30-year fixed mortgage rate in the neighborhood of 7%, as compared to between 5 and 5.5% last summer. With inflation recently ticking up again, it is expected that the Federal Reserve will continue with their rate hike strategy.
On the bright side, the inventory of single-family existing homes increased slightly to a 3 months’ supply in August. As for existing condo-townhouse properties, their inventory also increased to a 3.8 months’ supply. Keep in mind, a healthy and balanced housing market is considered to have approximately a 6 month supply of homes for sale.
Despite the high home prices and low inventory, there is still strong demand for homes in Florida. The state is a popular destination for retirees and people moving from other parts of the country. Florida’s warm weather, low taxes, and beautiful beaches are all major draws. The Florida housing market is expected to remain strong in the coming months, but the pace of price appreciation is likely to slow down. Overall, appropriately-priced homes in this market are still selling relatively quickly. Although the day of widespread bidding wars are in the rear view mirror for the most part, the lack of inventory does still make it a competitive market.
Are you looking to buy or sell real estate in the South Florida market? We can help! Contact Natasha at Live South Florida Realty, Inc. today! In addition, don’t forget to download the free Florida Home Search app for your mobile device.