If you have been keeping up with real estate news for the past few years, then you likely have seen a common theme. The inventory of homes for sale has been tight while home prices have been rising. In fact, this lone statement could easily apply to just about any month over the past several years. Needless to say, these higher home prices combined with tightening inventory have provided significant challenges for home buyers. Add in rising mortgage rates and persistent inflation, and it is no surprise that millions of Americans have been priced out of the housing market this year. So are better days ahead for Florida home buyers?
Year-over-year home prices and inventory
There may be some good news for home buyers in Florida. As of the May 2023 housing data, year-over-year median single-family home prices remained relatively flat at $419,900 (as compared to $420,000 in May 2022). As for year-over-year condo prices, they were up by 0.9% to a median price of $325,000. As a reminder, the median price is the midpoint; half the homes sold for more, half for less.
As for the inventory of homes for sale, the supply of single-family homes for sale ticked up to 2.7 months. Meanwhile, the supply stands at 3.6 months for condos in Florida. Although this is a slight improvement in housing inventory over the prior year, it is still well below the 6-month target that represents a balanced market.
Last month, closed sales of existing single-family homes statewide totaled 26,396, down 8.5% year-over-year. Meanwhile existing condo-townhouse sales totaled 11,392, down 14.1% from May 2022. Although the tight inventory of homes for sale continues to present challenges for buyers, 30-year fixed mortgage rates hovering between 6%-7% for most of the year have led to a stabilization of home prices. Based on the Federal Reserve’s recent pause in their key interest rate hike, there are signs that inflation is coming back down from 40-year highs. This is welcomed news for all consumers, not just home buyers.
Are you thinking about buying or selling a home in South Florida? We can help! Contact Natasha at Live South Florida Realty, Inc. today! Also, be sure to download the free Florida Home Search app for your mobile device!